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Shortfall Gap Insurance for your DaciaDacia Shortfall Insurance

 

How Can Shortfall Insurance Protect Your Dacia?

 

This page has been written to assist your understanding of Shortfall Insurance, also known as Gap Insurance and to help you to recognise the true importance it has to your Dacia.

 

We know that many online providers have a tendency to write long, complicated articles that often result in customers without the full understanding of Gap Insurance.

 

On this page you will find three examples of our three most popular policies: Return to Invoice, Vehicle Replacement and Contract Hire/Finance Gap.

 

In these examples we use Gaynor and her Dacia Duster, which she paid £15,000.

 

We hope that by using Gaynor, you will begin to understand the importance of Gap Insurance to your Dacia.


The majority of our customers inform us that they first heard about Gap Insurance while at their local Dacia dealership. Here they were quoted anything in between £399 to £1000. Our customers informed us that to know surprise, they declined immediately and instead decided to search online.

 

Here they found Shortfall.co.uk, and found access to policies as low as £39.99 inclusive of insurance premium tax. All our policies are genuine, tried and tested and are all supported by the financial compensation scheme. All our policies are strictly black and white without any grey areas.

 

A number of our policies are currently subject to a range of awards for both cost and quality. To find out more, please click here.


Before you read the example of Gaynor, please consider the following important FACTS:

 

An estimated 600,000 vehicles are written off each year in the UK

 

The average vehicle can depreciate by up to 50% in the first three years, including your Dacia

 

Your comprehensive insurer will only ever pay you the market value of your Dacia at the time it was written off or stolen

 

Your Shortfall Insurance provider will not reimburse you your Dacia's road tax as this can be claimed back from the DVLA

Shortfall Vehicle Replacement Insurance for your DaciaDacia Vehicle Replacement Insurance at Shortfall

 

What can Vehicle Replacement Gap Insurance do for your Dacia?

 

Vehicle Replacement is designed to protect you against any increase in your Dacia's invoice price as well as any depreciation.

 

As you may know, if in the unfortunate case your Dacia is written off, your comprehensive insurer will only pay you the market value of your Dacia at the time it was written off. Based on current rates of depreciation this could be thousand of pounds less than the invoice price you paid.

 

With the cost of inflation, raw materials, labour rates and even model upgrades the is also more than a reasonable chance that even simply getting back the invoice price you paid is not a  guarantee to be able to buy the same model again. After all we expect prices to rise it is just another example of a sad fact of life that just as the cost of your Dacia is losing value the cost of buying another is increasing.

 

Please see the below example we have provided to aid your understanding of how Vehicle Replacement Shortfall Insurance can protect your Dacia.

 

Gaynor purchases a Dacia Duster for £15,000. Three years later, she is involved in a motoring accident that results in the Dacia being written off. Gaynor receives £7,500 from her comprehensive insurer, given that this was the market value of the Dacia at the time it was written off

 

Without any form of gap insurance and without using what ever savings Gaynor has this is the only amount that she has to be able to replace her Dacia and or clear any finance.

 

To make matters worse, Gaynor is also informed by her local Dacia dealership that her model has been upgraded which means that her original Dacia Duster model has increased by £2,500 to £17,500. This means that to purchase another Dacia Duster, the same as Gaynors was on the day that she collected it from the dealership she now needs to find  £10,000.

 

In this example Gaynor would be paid a second payment of £10,000 , she now has the full replacement cost back, from this she can clear any finance if needs be and the balance of the funds is Gaynor's to spend as she sees fit.

 

Shortfall Vehicle Replacement Insurance for Dacia Online

 

Above is an example of the level of depreciation and how it could effect your finances in the future. The illustration also highlights exactly how much it may cost to purchase a Dacia Duster in five years time, so why not protect yourself and your Dacia with a Shortfall Vehicle Replacement Insurance policy.

Shortfall Return to Invoice Gap Insurance for your DaciaDacia Return to Invoice Gap Insurance at Shortfall

 

How can Return to Invoice Shortfall Gap Insurance protect your Dacia?

 

Return to Invoice is one of the most common forms of Gap Insurance and is most likely to be  the same level of cover which your local dealership has offered you.

 

As you may already be aware, if in the unfortunate case your Dacia is written off, your comprehensive insurer will only pay you the market value of your Dacia at the time it was written off.

 

This can be considerably less than what you originally paid for your Dacia.

 

Return to Invoice will act as a supplement to the comprehensive insurers settlement payment and will top you back up to the invoice price you originally paid for your Dacia.

 

This will then allow you to pay off any outstanding debt you may have if say for example you were paying for your Dacia through a form of finance agreement. If this is the case, if there is any remaining sum after you have paid the finance company, then this is yours to do as you see fit.

 

If you originally paid for your Dacia by cash, then you are free to spend the payment as however you see fit.

 

Please see the below example of Gaynor and her Dacia that we have designed in order to assist your understanding of Finance and Contract Hire Shortfall Insurance:

 

Gaynor purchases a Dacia Duster for £15,000. Three years later, she is involved in a motoring accident that results in the Dacia being written off. Gaynor receives £7,500 from her comprehensive insurer, given that this was the market value of the Dacia at the time it was written off.

 

Without any form of gap insurance the £75,000 Gaynor receives in settlement from her insurance company and without using any of her savings is the only amount that she would have to be able to replace her Dacia and or clear any outstanding finance.

 

Return to Invoice Shortfall Insurance in this example pay Gaynor a second payment for £7,500.

Gaynor now has the full purchase price back (less road fund licence which she can claim back from DVLA), from this Gaynor can clear any finance if necessary and the balance of the funds, the deposit Gaynor paid, the equity she generated while making her payments is hers to spend as she see's fit.


Shortfall Return to Invoice Gap Insurance for Dacia online

Above is an illustrated example of how much your Dacia could depreciate over a five year period and just how a Shortfall Return to Invoice Gap Insurance policy could help you and your finances.

Shortfall Finance and Contract Hire Gap Insurance for your DaciaDacia Finance Gap Insurance at Shortfall

 

What level of cover can Finance and Contract Hire Shortfall Insurance provide to your Dacia?

 

Finance and Contract Hire Shortfall Insurance is designed to protect you against the finance agreement you have taken out in order to purchase your Dacia.

 

An example of a finance agreement is: Contract or Finance Hire.

 

If in the unfortunate case your Dacia is written off, you may still be liable for any outstanding balance in your finance agreement after the comprehensive settlement payment has been paid.

 

Finance and Contract Hire Shortfall Insurance will clear this outstanding balance and allow you to walk away without any financial liabilities.

 

Please note that this policy type will not pay any financial penalties that are as a result of a late payment during the period of your ownership.

 

Please see the below example which we have designed to assist you with your understanding of Finance and Contract Hire Shortfall Insurance:

 

Gaynor takes out a four year finance agreement to purchase her Dacia Duster. The finance agreement involves set monthly payments of £300. Two years later, Gaynor is involved in a motoring accident that results in her Dacia being written off. Gaynor has already paid two years of her agreement, which totals £7,200 (24 months x £300). Even after Gaynor receives a settlement payment from her comprehensive insurer, there is still £4,000 outstanding on her finance agreement.

 

Without any level of Shortfall Insurance cover, Gaynor is legally bounded to pay this which may have a serious impact on her finances.


Finance Gap and Contract Hire Gap Insurance will pay the difference between Gaynor's insurance company's settlement and the amount she has outstanding on finance. Yes Gaynor still has no car and yes she will have to buy another but thank fully she is not left in the terrible position of having to pay for a Dacia she no longer has.

How much will your Dacia be worth in four years time?Dacia Depreciation at Shortfall

 

Industry experts say that the average vehicle can depreciate by up to 50% in the first three years. To put this into context, by the time you have owned your Dacia for three years, it is possible that it may have already lost half of its original value.

 

We at Shortfall.co.uk are aware that drivers, like yourself simply do not want to hear this, given that you will have most likely pay a considerable amount for your Dacia in the first place.

 

However, it is important for you to be aware of this in order to put into place the right protection in place.

 

To assist you with your understanding, we have designed a number of examples of Dacia depreciation for a variety of Dacia models.

 

Please note that we have taken these figures from 'What Car', who provide the latest up to date average Dacia depreciation, usage and mileage figures based on historical and current data.

 

 

Example 1 –

Dacia Duster Crossover 1.5 dCI 110 Ambiance 2WD 5dr

 

Invoice price you paid - £11,495

Year 1 – £8,250

Year 2 – £6,750

Year 3 – £5,500 – You will see that within the first three years, your Dacia Duster has lost £5,995

Year 4 – £4,675 – You will see that within the first four years, your Dacia Duster has lost £6,820

 

Example 2 –

Dacia Duster Crossover 1.5 dCi 110 Ambiance 4WD

 

Invoice price you paid - £13,495

Year 1 – £9,150

Year 2 – £7,501

Year 3 – £6,125 – You will see that within the first three years, your Dacia Duster has lost £7,370

Year 4 – £5,175 – You will see that within the first four years, your Dacia Duster has lost £8,320

 

Example 3 –

Dacia Duster Crossover 1.5 dCI 110 Laureate 2WD 5dr

 

Invoice price you paid - £12,995

Year 1 – £8,750

Year 2 – £7,175

Year 3 – £5,824 – You will see that within the first three years, your Dacia Duster has lost £7,171

Year 4 – £4,925 – You will see that within the first four years, your Dacia Duster has lost £8,070

 

Example 4 –

Dacia Duster Crossover 16v 105 Access 2WD 5dr

 

Invoice price you paid - £8,995

Year 1 – £6,625

Year 2 – £5,400

Year 3 – £4,400 – You will see that within the first three years, your Dacia Duster has lost £4,595

Year 4 – £3,725 – You will see that within the first four years, your Dacia Duster has lost £5,270

History of DaciaDacia at Shortfall

 

As you may well know, the Dacia brand is a Romanian brand and is now a subsidiary of the French car manufacturer Renault. The company was founded in the iconic year of 1966 arguably one of the most important years in history for those football fans out there.

 

The Dacia company began by acquiring the designs and the tooling as it was known, to build replica cars under license. The first of which was the Renault 12 model and before building the Renault 12 they decided to produce the Renault 8 for Renault to generate income and get the brand name out into the Automotive world.

 

The First batch of Dacia 1300's was assembled and ready for use on the 23 August 1969 and was a part of the Paris and Bucharest motoring shows that year. The current Dacia range in the UK has a long waiting list for certain models and the same applied for the release of the Dacia 1300.

 

Just 12 months after the first release of the Dacia 1300, there were a number of variants with the top of the range being the Lux Super. The range topping model at that time had a number of features that were then very rare and hard to come by. These features included a heated rear screen, windscreen mirrors and a radio.

 

A decade on, the Romanian brand had gone from strength to strength as the design team continued to churn out new and exciting ideas. The 1980's as a decade was one that was full of developments and different directions that the brand may have gone in. They produced everything from a car to a pick up truck and even a limousine.

 

1998 was a celebrated year for the brand as they celebrated the anniversary of 30 years since the first Dacia rolled off the production line. The Romanian brand witnessed the production of the 2,000,000th Dacia model in that year along with the complete restyling of the successful 1310 model.

 

The Dacia brand had always had something to do with the French brand Renault and in 1999 Renault decided to purchase Dacia. The idea for Renault was to turn Romania into the central hub of development for both central and eastern Europe. The Dacia brand has since gone from strength to strength and has recently gained its biggest market share of the globe ever in 2012.

 

The Romanian brand is now one of the pioneering brands in the Automotive industry after manufacturing and maintaining the most budget brand of the century.

Other manufacturers such as Peugeot Citroen and Fiat are now looking to mimic the individual ways of the Dacia brand in the way of challenging the price and the ability.