What can Shortfall Insurance do for your Hyundai?
At Shortfall.co.uk, we pride ourselves for our simply, easy to read explanatory systems. We work at great lengths to ensure that they assist customers with their understanding of Shortfall Insurance.
Our the years we have been successful in this aim, as we are regularly complemented by our customers for our, who inform us that our systems and examples have significantly assisted customers with their understanding of Shortfall Insurance and allowed them to make real, factual informed decisions about protecting their Hyundai with various levels of 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.
At Shortfall.co.uk, we give customers access to an impressive range of policies. Customers can find policies for as low as £39.99 inclusive of insurance premium tax, all our policies are genuine, tried and tested and are all subject to the financial services compensation scheme.
We work at great length with our insurance underwriters to ensure that our policies offer some of the best if the the best levels of cover in the UK today at guaranteed the best value for money prices.
A number of our policies are also currently subject to a range of awards for both cost and quality.
We hope that by reading the examples of Barack and what happens to him when his Hyundai is written off and how various levels of cover could protect him, will help you with your understanding of Gap Insurance.
Before you read the examples we have provided, we recommend you to consider the following important FACTS:
In the UK each year, 600,000 vehicles are written off each year.
The average vehicle can depreciate by up to 50% in the first three years, including your Hyundai.
Your comprehensive insurer will only pay you the market value of your Hyundai at the time it was written off or stolen not how much you paid or how much you still have outstanding on finance.
Your Shortfall Insurance provider will not reimburse you your Hyundai's road tax as this can be claimed back from the DVLA.
Vehicle Replacement Gap Insurance is very similar to Return to Invoice Gap Insurance, however, instead of simply protecting the amount that you have paid for your Hyundai it will also protect any inflationary increases.
Over a period of time just as your Hyundai is depreciating in value we expect to naturally pay more for another vehicle. technological advances, model upgrades, vat changes, labour rates even raw materials means that manufacturers increase prices over time. This means that simply getting back the invoice price of your Hyundai is no longer a guarantee to be able to buy another, at least no without using your savings.
Vehicle Replacement will therefore pay you the difference between your comprehensive insurers settlement payment and the amount that you need to spend to buy another Hyundai the the same age, mileage and condition as your's originally was when you first drove it out of the show room. If that model is no longer available then settlement is based on the superseding model.
Please take a look at the below example we have put together in order to assist your understanding:
Barack purchases a Hyundai i30 for £20,000. Three years later, Barack awakes to find that his Hyundai has been stolen. Barack receives £10,000 from his comprehensive insurer, given that this was the market value of his Hyundai at the time it was written off. Barack is also informed by his local Hyundai dealership that his Hyundai i30 model has increased by £5,000 to £25,000 because a newer version has been introduced. This means that without any form of gap insurance Barack now only has £10,000 to be able to replace his Hyundai.
This is where Vehicle Replacement Gap Insurance comes into play. Vehicle Replacement Gap will pay the difference between barracks insurance settlement and the amount of money that he needs to buy another Hyundai the same as his was on the day he drove it home from the dealership. If that model is no longer available then settlement will be based on the superseding model.
Return to Invoice is one of the most basic and also one of the most popular Gap Insurance policy types on the market. It is also more than likely the level of cover that your local Hyundai dealership has spoken to you about.
To put it simple, if in the unfortunate case your Hyundai is written off or stolen, Return to Invoice Gap Insurance will pay you the difference between what you receive from your comprehensive insurer (the market value) and the original invoice price you paid however many years ago.
As you may already be aware, your comprehensive insurer will only ever pay you the market value of your Hyundai at the time it was written off or stolen, and this amount can be considerably less than what you originally paid because of deprecation levels. Please remember that the average vehicle can lose up to 50% within just a three year period.
In other words, Return to Invoice Gap Insurance will act as a supplement to your comprehensive insurer and top you up to the original invoice price you paid.
If you paid for your Hyundai using a form of finance , this will then allow you to pay of any outstanding finance you may be liable for and the balance of the settlement, the deposit you paid and and equity you have generated while making your payments will be yours to do with as you see fit.
Please see the below example of Barack and his Hyundai which we have designed to assist you with your understanding of Return to Invoice Gap Insurance:
Barack purchases a Hyundai i30 for £20,000. Three years later, Barack awakes to find that his Hyundai has been stolen. Barack receives £10,000 from his comprehensive insurer, given that this was the market value of his Hyundai at the time it was written off. Without any form of cover and without either using savings or taking out a form of financial loan, Barack has just £10,000 to replace his Hyundai or to clear any outstanding finance.Barrack has effectively lost £10,000.
Return to Invoice Gap Insurance will pay the difference between Barack's insurance companies settlement and the original invoice price he paid, he would now receive a second payment for another £10,000 which means that he now has the full purchase price back.
Above is an example of the depreciation rates for Hyundai and exactly how Return to Invoice Gap Insurance could protect you from a potential Shortfall.
Finance and Contract Hire Shortfall Insurance is designed for those who have purchased their Hyundai model through the form of a financial agreement and only have the desire to protect any outstanding finance in the event of a claim.
Many drivers assume that their comprehensive insurer will clear all the outstanding balance, however, this is not the case.
Even after you have been paid a settlement payment, there may still be an outstanding balance which you are legally bounded to.
Finance and Contract Hire Shortfall Insurance will pay the difference between your insurance companies settlement and the amount still outstanding on finance.
Please see the example below we have put together in order to assist you with your understanding:
Barack takes out a four year finance agreement which involves set monthly payments of £300. Two years later, Barack is involved in a motoring accident that thankfully leaves him and the other driver unhurt, but his Hyundai is written off. Barack has already paid two years of his agreement, which totals £7,200 (24 months x £300).
Even after Barack is paid a settlement payment by his comprehensive insurer, there is still £2,200 left outstanding. Without any form of gap insurance Barrack is still responsible for this shortfall. Barack can use his savings or even take out a bank loan to pay this £2,200.
But this is where Finance and Contract Hire Shortfall Insurance can help. Finance and Contract Hire Gap will pay the difference between his own motor insurance companies settlement and the amount he needs to clear any outstanding finance.
Motor industry experts claim that the average vehicle can depreciate by up to 50% within the first three years. In other words, your Hyundai may only be worth half of what you originally paid for by the time it reaches its third birthday.
We at Shortfall.co.uk understand the drivers like yourself do not want to hear this, as it is likely that you will have just paid a large amount for your Hyundai and now you are told half of this amount will practically disappear within three years time.
However this is the real world and drivers again like yourself need to be aware of Hyundai depreciation rates like this in order to put into place the relevant protection for their finances. Shortfall Gap Insurance can provide you with this financial protection, if in the unfortunate incase your Hyundai is written off or stolen.
To assist you with your understanding of Hyundai depreciation, we have put together a number of examples of Hyundai depreciation. Please note that the figures used in these examples have been taken from 'What Car', who provide historical and current data to predict what your Hyundai will be worth in one to four years time.
Example 1 –
Hyundai i10 Hatchback 1.0 Blue 5dr
Invoice price you paid - £9,345
Year 1 – £6,150
Year 2 – £5,050
Year 3 – £4,150 – You will see that within the first three years, your Hyundai i10 has lost £5,195
Year 4 – £3,550 – You will see that within the first four years, your Hyundai i10 has lost £5,795
Example 2 –
Hyundai i20 Hatchback 1.2 Active 5dr
Invoice price you paid - £11,595
Year 1 – £7,149
Year 2 – £5,875
Year 3 – £4,800 – You will see that within the first three years, your Hyundai i20 has lost £6,795
Year 4 – £4,126 – You will see that within the first four years, your Hyundai i20 has lost £7,469
Example 3 –
Hyundai i30 Hatchback 1.4 CRDi 90 Classic 5dr
Invoice price you paid - £16,145
Year 1 – £9,550
Year 2 – £7,850
Year 3 – £6,450 – You will see that within the first three years, your Hyundai i30 has lost £9,695
Year 4 – £5,501 – You will see that within the first four years, your Hyundai i30 has lost £10,644
Example 4 –
Hyundai i40 Saloon 1.7 CRDi 136 B'Drive Active 4dr
Invoice price you paid - £19,315
Year 1 – £12,277
Year 2 – £10,088
Year 3 – £8,302 – You will see that within the first three years, your Hyundai i40 has lost £11,013
Year 4 – £7,069 – You will see that within the first four years, your Hyundai i40 has lost £12,246
Example 5 –
Hyundai i800 MPV 2.5 CRDi 170 Style Auto 5dr
Invoice price you paid - £24,620
Year 1 – £15,680
Year 2 – £12,884
Year 3 – £10,577 – You will see that within the first three years, your Hyundai i800 has lost £14,043
Year 4 – £9,050 – You will see that within the first four years, your Hyundai i800 has lost £15,570
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The Hyundai brand was founded in 1967 and is part of the overall Hyundai Motor Group brand which also has the other successful South Korean brand Kia within the group.
The brand alone remained one of the most sustainable brands worldwide in the motor industry for many years and only recently in 2010 the firm saw itself feature in the top ten of the worlds best car manufacturers in terms of the production output.
The South Korean brand has in recent years gone from strength to strength with both the Hyundai and Kia models and has based the success on the change in design of the range of models. The Hyundai brand was once seen as a budget brand by many in the industry, but now however, the tables have turned.
Hyundai is a growing brand and reputation which instils quality in both the build and design of the model when people see the brand and the badge. The Hyundai Motor Group itself has stated that the company cannot meet the demand that has seen both the Kia and the Hyundai brand rise to the top of the best selling lists worldwide.
The Hyundai brand is the biggest export from the growing economy of India and the brand will grow with the economy.