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Shortfall Gap Insurance for your FerrariFerrari Shortfall Insurance

 

How mportant Is Shortfall Insurance to your Ferrari?

 

This page has been designed to assist you with your understanding of Shortfall Gap Insurance and how it can protect your Ferrari, and most importantly your finances.

 

Gap Insurance in brief is an additional insurance policy that runs along side your own motor insurance policy and makes sure that heaven forbid if your Ferrari is in an accident or stolen and written off that you do not end up out of pocket.

 

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

 

In these examples, we use Duncan and his Ferrari Enzo, which he paid £100,000 for.

 

At Shortfall.co.uk, we give customers access to a range of policies for as low as £39.99 inclusive of insurance premium tax. We have worked at great lengths with our insurance underwriters to ensure that our policies are strictly black and white without any grey areas.

 

This is why a number of policies are currently subject to a range of awards for both cost and quality. We know that the majority of our customers first learnt about Shortfall Insurance while at their local Ferrari dealership. At the dealership, they were quoted in between £399 to £1000. In fact we must mention that we have even dealt with customers who have been quoted even in the excess of £1000.

 

To no surprise, our customers inform us that they declined and instead decided to search online. They arrive at Shortfall.co.uk and find access to policies for as low as 85% of the average dealership price. Our customers often ask us about the reasons for the price difference between ourselves and the Ferrari dealerships.

 

This is we hasten to add nothing to do with your policy, customer services, claims handling or policy features, instead there are differences in the levels of tax we both pay. Also the volume of business we provide and the type of business means that we can spread the risk or more specialist vehicles such as yours amongst thousands of other more mainstream models.

 

Before you go ahead and read the examples, we advise you to consider the following important facts:

 

It is estimated that in the UK each year, 600,000 vehicles are written off

 

The average vehicle can depreciate by up to 50% in the first three years. Even though your Ferrari is far from average even more modest rates of 25% and 30 % on the higher purchase price you will of paid can mean a major financial loss.

 

Your comprehensive insurer is only ever legally bound to offer you the market value of your Ferrari at the time it was written off or stolen.

 

With cover for your Ferrari from as little as £39.00 why not click or call and see just how easy and inexpensive Shortfall Gap Insurance for your Ferrari really can be.

 

Shortfall Vehicle Replacement Gap Insurance for your FerrariFerrari Vehicle Replacement Insurance at Shortfall

 

What can Vehicle Replacement Shortfall Gap Insurance do for your Ferrari?

 

Vehicle Replacement Shortfall Insurance is designed to protect you from any increase in the original invoice price you paid for your Ferrari.

 

The invoice price of your Ferrari may increase for a range of reasons, for example, if Ferrari introduce an upgraded version of your model, if the government increase VAT or if the cost of certain raw materials increase.

 

Vehicle Replacement Gap will pay you the difference between the settlement figure you receive from your comprehensive insurer, which will be the market value of your Ferrari at the time it was written off or stolen and what you now need to purchase another Ferrari, the same age, mileage and condition as your's originally was when you first drove it out of the show room.

 

To aid you with your understanding, we have put together a possible real life situation:

 

Duncan purchases a Ferrari Enzo for £100,000. Three years later, Duncan awakes to find that his Ferrari is no longer on his drive away and is later informed that it has been stolen. Duncan receives a settlement payment of £60,000 from his comprehensive insurer, given that this was the market value of his Ferrari at the time it was written off.

 

Duncan is also informed by his local Ferrari dealership that the invoice price of his Enzo model has increased by £10,000 to £110,000. This means that Duncan needs an addition £50,000 to purchase another Ferrari the same condiiton age and mileage as his was on the day that collected it.

 

Vehicle Replacement will pay Duncan this £50,000 Gap and place him in the position where he can purchase another Ferrari Enzo, if he so wishes.

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

 

What can Return To Invoice Shortfall Insurance do for your Ferrari?

 

Return to Invoice Shortfall Insurance is designed to protect the invoice price you originally paid for your Ferrari.

 

If in the unfortunate case your Ferrari is written off, you may already be aware that the your comprehensive insurer will only ever pay you the market value of your Ferrari at the time it was written off.

 

If you take into account that the average vehicle will depreciate (lose value) within the first three years, this market value can be considerably less than what you originally paid.

 

Return to Invoice Gap Insurance will pay you the difference between the market value of your Ferrari and the invoice price you originally paid however many years ago.

 

This will then allow you to pay off any outstanding debt you may have on your finance agreement or place you in a position where you are able to purchase another Ferrari if you so wish.

 

Please take a look at the below example which we have designed to assist your understanding of Return to Invoice Shortfall Gap Insurance:

 

Duncan purchases a Ferrari Enzo for £100,000. Three years later, it is written off as a result of a motoring accident. Duncan receives £50,000 from his comprehensive insurer, given that this was the market value of his Ferrari at the time it was written off, please take note of this drastic deprecation.

 

This means that Duncan now has a Gap of £50,000. This means that Duncan is unable to pay off any outstanding finance or to purchase another Ferrari.

 

Return to Invoice Shortfall Insurance will pay this outstanding £50,000 and return Duncan to the invoice price he originally paid for his Ferrari.

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

 

What can Finance and Contract Hire Shortfall Insurance do for your Ferrari?

 

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

 

If in the unfortunate case your Ferrari is written off, you may still be liable for the outstanding balance on your finance agreement.

 

Many drivers assume that they are fully covered by their comprehensive insurer, however, this is not the case.

 

Even after you receive the settlement payment from your comprehensive insurer, there may still be an outstanding balance left which you are legally bounded too.

 

Finance and Contract Hire Gap Insurance will pay the finance company involved this outstanding balance and allow you to walk away from the agreement without any financial liabilities. So, why take the risk when you have the ability to protect yourself with a Shortfall Gap Insurance policy today.

 

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

 

Duncan takes out a four year finance agreement which consists of set monthly payments of £1000. Two years later, Duncan is involved in a motoring accident that thankfully leaves him unhurt, but his Ferrari is written off. Duncan has already paid two years of the finance agreement, which totals £24,000 (24 months x £1000).

 

In theory this means that Duncan is still liable for the outstanding £24,000 balance on his finance agreement. Even after Duncan receives his settlement payment from his comprehensive insurer, there is still £10,000 left outstanding.

 

Finance and Contract Hire Gap Insurance will clear this outstanding balance which will allow Duncan to walk away a free man without any financial liabilities.

 

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

 

Industry experts claim that the average vehicle can depreciate by up to 50% within the first three years. It is important to stress that no vehicle is immune from depreciation, including your Ferrari.

 

We at Shortfall.co.uk understand that no driver wants to hear this, given that you will have most likely paid a considerable amount for their Ferrari.

 

However, we at Shortfall.co.uk believe it is important to make drivers aware of Ferrari depreciation rates, in order to put in place the relevant protection. Shortfall Gap Insurance can provide you and your Ferrari with this protection and prevent you from being financial disadvantaged as a result of depreciation, should your Ferrari be written off or stolen.

 

We have designed this page with the aim to assist you with your understanding of Ferrari depreciation by designing below two examples of Ferrari depreciation.

 

Please note that we have taken these figures from 'What Car', who provide historical and current data to predict what your Ferrari will be worth in the future.

 

Example 1 –

Ferrari 458 Coupe 4.5 V8 Italia 2dr

 

Invoice price you paid - £178,461

Year 1 – £163,274

Year 2 – £135,559

Year 3 – £112,627 – You will see that within the first three years, your Ferrari 458 has lost £65,834

Year 4 – £97,582 – You will see that within the first four years, your Ferrari 458 has lost £80,879

 

Example 2 –

Ferrari FF Coupe 6.3 V12 2dr

 

Invoice price you paid - £227,077

Year 1 – £212,499

Year 2 – £176,393

Year 3 – £146,578 – You will see that within the first three years, your Ferrari FF has lost £80,499

Year 4 – £126,982 – You will see that within the first four years, your Ferrari FF has lost £100,095

Recent Ferrari News at Shortfall Shortfall Ferrari News

 

Ferrari reveal new California model at the Geneva Motor Show.

 

The new Ferrari California T model is due to go on sale.

 

Ferrari confirm the release of the new 458 Speciale model.

 

Ferrari have revealed the brand new F60 America model as the firm looks to celebrate 60 years of the F12.

 

Ferrari make a huge impact in Geneva with the reveal of the new 488 GTB model. 

 

Sergio Marchionne says the Ferrari Dino could very well be set to return.

The History of FerrariFerrari at Shortfall

 

Ferrari is an Italian sports car manufacturer, founded in 1929 by Enzo Ferrari. Enzo originally founded Scuderia Ferrari in 1928 as a sponsor for amateur drivers. The company used Alfa Romeo cars to race in and the success even resulted in Enzo becoming head of Alfa Romeo’s racing department. Enzo did however originally first contact Fiat to work with but they turned him down.

 

Enzo left Alfa Romeo in 1939 or to many people, he was dismissed. Enzo was banned from using his name in connection with racing for four years however as a result of the Second World War, racing was curtailed. Post 1945, the company developed the 12-cylindeer engine in which the company would become well known for.

 

The country experienced financial difficulties throughout the 60’s and considered a possible buy out by Ford. Enzo was said to have walked out of this meeting. He later sold the company to Fiat in 1969. Enzo died in 1988, aged 90 and his son Piero became leader of the company. Michael Schumacher raced Ferrari's to seven F1 championships between 1994 and 2004.

 

The symbol of Ferrari continues to represent luxury and wealth. The current product range includes the FF, F12berlinetta, 458 Spider, 458 Italia and the California. The Enzo model which is no longer in production has a selling price of $1 million dollars. The logo of the company is a black horse with the initials S.F which stands for the company’s original name Scuderia Ferrari.

 

The black horse is in tribute to Francesco Baracca, a World War One Italian fighter pilot who died in combat. He used to paint a black horse on the side of the plane for good luck.  His mother asked Enzo to follow suit. Ferrari builds a maximum of 14 cars every day. The most popular model is the Grand Turismo. The fastest Ferrari model is the F60 which can reach 0-100 in 3.2 seconds.