What can Shortfall Gap Insurance do for your Fiat?
Gap Insurance is unlike other forms of insurance and we think it should be straight forward, black and white and without any grey areas.
Simply put, if your Fiat is written off it makes sure that you do not end up out of pocket. Don't forget that your own motor insurance company are only ever legally bound to pay you the value of your Fiat on the day it was written off and with current rates of depreciation this could and often is thousand of pounds less than you originally paid.
However, some providers of Gap Insurance refuse to look at it this way, and instead prefer to use the typical insurance terminology that often results in customers being left confused without the right understanding of Gap Insurance and how it can protect their finances.
At Shortfall.co.uk we are credited by our customers on a regular basis for our easy to read, simple explanatory articles and examples.
In these examples, we use Les and his Fiat 500,
We know that over 50% of our customers first hear about Shortfall Insurance at their local Fiat dealership. Our customers inform us that they were told about Gap Insurance when they were finalising their purchase of the Fiat and were quoted the average dealership rice of £399. However, we often deal with customers who were quoted anything in the excess of £1000.
At Shortfall.co.uk, all our policies are genuine, proven and we are proud to say are subject to a range of awards for both cost and quality.
We hope that by reading the three examples of Les, you will recognise the full importance of Gap Insurance and how simple and straight forward it is.
Before you read the examples, please consider the following important FACTS:
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, including your Fiat
Your comprehensive insurer will only pay you the market value of your Fiat at the time it was written off or stolen
What level of cover can Vehicle Replacement Gap Insurance provide for your Fiat?
Vehicle Replacement Shortfall Insurance is designed to protect you against any increase in the invoice price you originally paid for your Fiat, if in the unfortunate case the Fiat is written off or stolen.
The invoice price of your Fiat may increase for a range of reasons, for example if the government decide to increase VAT, if the cost of oil, iron, steel increase or if Fiat introduce an upgraded version of your model which either increases the invoice price of your now outdated version or removes its from production.
Vehicle Replacement Shortfall Insurance will pay you the difference between the market value of your Fiat at the time it was written off or stolen (which you will be paid by your comprehensive insurer) and the now increased amount you now need to purchase another Fiat the same age, mileage and condition as yours was on the day that you collected it.
If your original model is no longer available, settlement will be based on the superceeding model.
Please see below the real life example which we have designed in order to assist you with your understanding of how Vehicle replacement insurance can protect you and your Fiat:
Les purchases a Fiat 500 for £10,000. Three years later, he is involved in a motoring accident that consequently writes his Fiat 500 off. Les receives a settlement payment of £5,000, given that this was the market value of his Fiat 500 at the time it was written off. Les is informed that the invoice price of his Fiat has now increased by £2,500 to £12,500. This means that Les is unable to purchase another Fiat 500 because he needs an additional £7.500.
Vehicle Replacement will pay the difference between Les' Fiat 500's value on the day it was written off and the amount of money that Les needs to buy another the same as his originaly was, in this case £7,500. This puts Les in the position where he can purchase another Fiat if he so wishes or spend the money as he sees fit. (pleasse remember that if you have purchased your Fiat via a form of finance that this will have to be cleared and the remaining funds yours)
Above is an illustrated example of how much your Fiat 500 model could depreciate over a 5 year period and how much the invoice price could also increase. Therefore, why not protect your Fiat model with a Shortfall Vehicle Replacement Insurance policy today.
What can Return to Invoice Shortfall Insurance do for your Fiat?
Return to Invoice is one of the most basic and understandable forms of gap insurance as well as being one of the most popular Gap Insurance policy types.
It is all in the name as if in the unfortunate case your Fiat is written off or stolen, through cooperation between ourselves and your comprehensive insurer, you will be returned back to the invoice price you originally paid for your Fiat.
This will then allow you to pay off any outstanding finance you may be liable for or simply allow you to purchase another Fiat if you so wish.
Please see the example which we have put together below to help you with your understanding:
Les purchases a Fiat 500 for £10,000.Three years later, he is involved in a motoring accident which writes his Fiat off. Les receives a settlement payment of £5,000, given that this was the market value of his Fiat 500 at the time it was written off. This means that Les needs an additional £5,000 in order to be returned back to the invoice price he originally paid.
What can Finance and Contract Hire Shortfall Insurance do for your Fiat?
If in the unfortunate case your Fiat is written off or stolen, you may still be liable for the remaining payments of the agreement.
Therefore, Finance and Contract Hire Gap Insurance will protect you against this and clear all financial liabilities that have occurred under your name.
Please see the real life example we have designed to assist you with your understanding:
Les takes out a three year finance agreement to purchase his Fiat. It involves set monthly payments of £250. Two years later, Les awakes to find that his Fiat has been stolen. Les has already paid two years of his agreement, which totals £6,000 (24 months x £250).
In theory, Les is still liable for the outstanding £3,000 balance left on his finance agreement. Many drivers assume that there comprehensive insurer will cover them against their finance agreement. This is not always the case, as Les only receives £2,000 from his comprehensive insurer. This means that Les is still liable for the remaining £1000 outstanding balance.
Finance and Contract Hire Shortfall Insurance will pay the finance company involved this outstanding £1000, which will clear all financial liabilities that have occurred under Les's name and allow him to walk away a free man.
Industry experts say that the average vehicle can depreciate by up to 50% in the first three years. In other words, there is a high chance that your Fiat may lose half of its original value within the first three years, and this is through no fault of your own.
As you may or may not already be aware, if in the unfortunate case your Fiat is written off or stolen, you will only ever be paid the market value of your Fiat, so what your Fiat was worth at the time it was written off or stolen. If you take into account the above paragraph, this can be considerably less than what you originally paid for your Fiat.
We at Shortfall.co.uk understand that drivers like yourself simply do no want to hear information like this, given that you will have most likely just paid a large amount for your Fiat.
However, we at Shortfall.co.uk believe it is important to make you aware of Fiat depreciation rates in order to demonstrate you the importance of Gap Insurance.
On this page, to help you with your understanding, we have provided you with five examples of Fiat depreciation.
Please note that the figures used on this page have been taken from 'What Car', who provide historical and current data to predict what your Fiat will be worth in one, two, three and fours years time.
Example 1 –
Fiat 500 Convertible 0.9 Twinair Gucci 2dr
Invoice price you paid - £19,060
Year 1 – £11,375
Year 2 – £9,351
Year 3 – £7,675 – You will see that within the first three years, your Fiat 500 has lost £11,385
Year 4 – £6,551 – You will see that within the first four years, your Fiat 500 has lost £12,509
Example 2 –
Fita Doblo MPV 1.4 16v Active 5dr
Invoice price you paid - £13,420
Year 1 – £7,205
Year 2 – £5,929
Year 3 – £4,854 – You will see that within the first three years, your Fiat Doblo has lost £8,566
Year 4 – £4,153 – You will see that within the first four years, your Fiat Doblo has lost £9,267
Example 3 –
Fiat Fiorino Combi MPV 1.3 MultiJet 75 5st 5dr
Invoice price you paid - £9,647
Year 1 – £6,725
Year 2 – £5,500
Year 3 – £4,475 – You will see that within the first three years, your Fiat Fiorino has lost £5,172
Year 4 – £3,550 – You will see that within the first four years, your Fiat Fiorino has lost £6,097
Example 4 –
Fiat Panda Hatchback 0.9 Twinair 85 4x4 5dr
Invoice price you paid - £13,950
Year 1 – £6,750
Year 2 – £5,574
Year 3 – £4,576 – You will see that within the first three years, your Fiat Panda has lost £9,374
Year 4 – £3,875 – You will see that within the first four years, your Fiat Panda has lost £10,075
Example 5 –
Fiat Punto Hatchback 0.9 Twinair 85 5dr
Invoice price you paid - £12,700
Year 1 – £7,275
Year 2 – £5,975
Year 3 – £4,900 – You will see that within the first three years, your Fiat Punto has lost £7,800
Year 4 – £4,200 – You will see that within the first four years, your FIat Punto has lost £8,500
Fiat confirm the release of the new 500L model for the year of 2014.
Fiat have confirmed the release of the Ducato for 2014.
The new 4x4 expansion at Fiat continues as the Panda 4x4 joins the market.
Fiat 500X model seen during the final stages of testing.
Fiat reveal their brand new Doblo Cargo van from the Hannover motor show.
The history of the Fiat Panda at Shortfall as well as a look at the all new Panda Crossover.
Fiat rumoured to be releasing a brand new 500 model for the sales year of 2016.
Fiat is an acronym for Societa Anonima Fabbrica Italiana Automobili Torino. It is responsible for a range of subsidies including Lancia, Ferrari, Alfa Romeo, Maserati, Chrysler, Jeep and Dodge. The history of Fiat dates back to its founder Giovanni Agnelli in Turin, Italy. The company has an unusual history as it enjoyed great success from the moment of its creation in 1899.
Since 1910, it has been the largest Italian automaker. 11 years after the company was set up, it expanded its presence to America with subsidiary Fiat America. This early success allowed the company to diversify into new markets including production of trucks, trams, aircrafts, marine engines, electricity, public transportation lines, railways, steel production and commercial vehicles. The first vehicle to bear the company's name was the 3 1/2 CV model.
During the First World War, Fiat dedicated itself to their allied war movement by providing weaponry, aircrafts and vehicles. In 1916, the company built Europe's largest factory which remarkably had a driving track on its roof to allow it to test the newly manufactured vehicles. During Mussolini's regime, the company was forced to halt exports and concentrate on domestic production.
In the 1980's, the popular Uno model was introduced, which won the car of the year award in 1995. In 2009, Fiat acquired a 30% stake in Chrysler and form the 'global alliance'. Outside of Italy, the company's largest market is Brazil. It also has operations in Ethiopia, North Korea, China, Egypt, Bulgaria, Brazil, Argentina and Serbia. Fiat’s portfolio consists of the following successful models: the 500, 500C, 500L, Panda, Punto, Bravo, Qubo and the Doblo.