What can Shortfall Gap Insurance do for your Jaguar?
At Shortfall.co.uk we work at great lengths to ensure that our customers are in a position where they fully understand and recognise the importance of Gap Insurance and how it can assist themselves and their Jaguar model.
We think that it is important that you understand how the different levels of protect work and what they do when you need to make a claim. After all, this is the acid test for any insurance policy and where we honestly believe that our policies leave others in the market place far behind.
We believe that the concept of Gap Insurance is easy to understand, however, only when it is presented in a simple, easy to understand manner. Simply put, no matter what model Jaguar you have bought it will over time lose value. The average vehicle predicted to lose up to 50% within a three year period and your own motor insurance company only ever obliged to pay you the value of your Jaguar on the day it is written off.
This means that if the worst happens and your Jaguar joins the estimated 600,000 other vehicles written off in the UK each year the amount that you are paid can and often is thousands of pounds less than you paid for your Jaguar.
Gap Insurance can at least make sure that the financial aspects and concerns are taken away as it is designed to protect you the only way insurance can financially and make sure that you do not end up out of pocket.
At Shortfall.co.uk, we give customer’s access to a range of policies for as low as £39.99 inclusive of insurance premium tax. Our policies are genuine, proven and most importantly are all backed by the financial compensation scheme. A number of our policies are currently subject to a range of awards for both cost and quality. This is as a result of our policies being strictly black and white, and again most importantly, without any grey areas.
We know that the majority of our customers first hear about Gap Insurance while at their local Jaguar dealership. Here they are quoted anything as low as £399 to anything as much as £1000. We have even dealt with customers who have been quoted even greater. We know that our customers declined and instead decided to search online.
On this page, you will find three examples of our three most popular policies: Return to Invoice, Vehicle Replacement and Finance Gap. In these examples, we use Peter and his Jaguar XJ, which he paid £75,000.
We also recommend you to 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 Jaguar.
Your comprehensive insurer will only ever pay you the market value of your Jaguar at the time it was written of or stolen.
What can vehicle Replacement do to help protect the your Jaguar and most importantly your finances?
However, unlike Return to Invoice Gap Insurance, Vehicle Replacement will take into account and thus protect you from any increases in the invoice price of his Jaguar.
Vehicle prices rise naturally over a number of years, safety features advance, technological improvements, engine upgrades, manufactures increases, raw materials, labour costs, even inflation all means that even if nothing ever happened to your Jaguar and you wanted to change it for another in say three, four or five years time you would not be surprised to pay more.
These inflationary increases means that simply getting back the original invoice price you paid is not a guarantee to be able to buy another Jaguar the same age, mileage, condition and specification as yours was on the day that you collected it from your dealership.
Lets look at an example.
Peter purchases his Jaguar XJ for £75,000. Three years later, Peter awakes to find his Jaguar is no longer in the drive way. Peter receives £42,500 from his comprehensive insurer, given that this was the market price of the Jaguar at the time it is written off. Without any form of cover and without using Peters savings this is the only amount that he has to be able to replace his Jaguar or clear any outstanding finance.
To compound the issue to buy another Jaguar the same, age mileage and specification as Peters was, with model upgrades is now £78,950.
Vehicle Replacement Insurance would now pay the difference between Peters motor insurance companies settlement and the amount that he would need to spend to buy another Jaguar the same as his originally was. In this example Peter would receive another payment for £36,450. Peter now has the full replacement cost of another Jaguar, if the model he had purchased was no longer available then settlement would be based on the superseding model.
What can Return To Invoice Shortfall Insurance do for your Jaguar?
Return to Invoice Gap Insurance is deigned to simply pay the difference between your own motor insurance companies settlement and the original invoice price that you paid for your Jaguar model.
As you may already know, you will only be paid the market value of your Jaguar at the time it was written off or stolen by your comprehensive insurer and given that industry experts claim that the average vehicle will lose up to 50% in the first three years, this can be significantly less than what you originally paid and without any form of Gap Insurance cover.
If you paid for your Jaguar using a form of finance this will then allow you to pay off any outstanding finance and then the balance of the settlement, the deposit you aid and the equity you have generated is yours to spend as you wish.
Please see the example below which we have drawn together in order to assist your understanding of Return to Invoice Gap Insurance:
Peter purchases his Jaguar XJ for £50,000. Three years later, Peter awakes to find his Jaguar is no longer in the drive way. Peter receives £42,000 from his comprehensive insurer, given that this was the market price of the Jaguar at the time it is written off. Without any form of Gap Insurance and again without using savings peter now only has £33.000 to replace his Jaguar or clear any outstanding finance.
Above is an example of the depreciation rates for Jaguar XF and the potential Shortfall you could face over a five year period. Therefore, why not protect yourself and your Jaguar with a Shortfall Return to Invoice policy today.
What can Finance and Contract Hire Gap Insurance do to Protect your Jaguar?
Contract Hire/Finance Gap is designed to protect you so that if your Jaguar is written off that you can walk away with no further financial liability. Yes you will still have no Jaguar to use and yes you will have to find another advanced rental or deposit. however, thank fully you will not be left in the position of having to pay for a vehicle that you no-longer have.
Please remember that if your Jaguar is written off that your own motor insurance company is only ever legally bound to pay you the amount that your Jaguar is worth on the day that it was written off and that the average vehicle can lose up to 50% within just three years. This means that if your Jaguar joins the estimated 600,000 other vehicles written off in the UK each year the amount that your insurance company offers can and often is a lot less than you originally paid and subsequently a lot less than you still have outstanding on finance.
Lets look at an example of how finance gap insurance works:
Peter takes out a five year finance agreement to purchase his Jaguar XJ. This involves set monthly payments of £800. Three years later, Peter is involved in a motoring accident that results in his Jaguar being wrote off. Peter has already paid three years of the agreement, which totals £28,800 (36 months x £800). Even after his own motor insurance settlement there is still £5,750 outstanding on finance which without any form of cover Peter is still legally liable for.
Contract Hire/Finance Gap will pay the difference between peters motor insurance settlement and the amount that he has outstanding on finance, Please remember that Finance and Contract Hire Gap Insurance will not cover any arrears or late payment charges. meaning that he walk away from his old Jaguar with no further financial liability.
Industry experts claim that the average vehicle can depreciate by up to 50% within the first three years. To put this into context, your Jaguar can lose up to half of its value within the first three years, and this is through no fault of your own.
We understand that drivers do not want to here this, given that they will have just paid a large sum for their Jaguar, and now they are told that half of this amount will in theory disappear within three years time.
Although there is nothing you can physically put into place to prevent depreciation, Shortfall Gap Insurance can provide you with financial protection against depreciation if in the unfortunate case your Jaguar is written off or stolen.
We have put together a number of examples of Jaguar depreciation which we hope will assist you with your understanding. In these examples we use figures taken from 'What Car', who provide historical and current data in order to predict what your Jaguar will be worth in one to four years time.
Example 1 –
Jaguar XK Convertible 5.0 V8 R 2dr
Invoice price you paid - £84,965
Year 1 – £53,044
Year 2 – £44,046
Year 3 – £36,569 – You will see that within the first three years, your Jaguar XK has lost £48,396
Year 4 – £31,692 – You will see that within the first four years, your Jaguar XK has lost £53,273
Example 2 –
Jaguar XJ Saloom 3.0 V6 S/C Portfolio LWB 4dr
Invoice price you paid - £76,435
Year 1 – £41,084
Year 2 – £33,777
Year 3 – £27,700 – You will see that within the first three years, your Jaguar XJ has lost £48,735
Year 4 – £23,664 – You will see that within the first four years, your Jaguar XJ has lost £52,771
Example 3 –
Jaguar XF Saloon 2.2D 163 Luxury 4dr
Invoice price you paid - £32,945
Year 1 – £22,205
Year 2 – £18,429
Year 3 – £15,326 – You will see that within the first three years, your Jaguar XF has lost £17,619
Year 4 – £13,277 – You will see that within the first four years, your Jaguar XF has lost £19,668
Example 4 –
Jaguar XK Coupe 5.0 V8 R 2dr
Invoice price you paid - £78,965
Year 1 – £49,345
Year 2 – £40,943
Year 3 – £34,018 – You will see that within the first three years, your Jaguar XK has lost £44,947
Year 4 – £29,462 – You will see that within the first four years, your Jaguar XK has lost £49,503
Example 5 –
Jaguar XJ Saloon 3.0D V6 Premium Luxury LWB 4dr
Invoice price you paid - £63,775
Year 1 – £39,719
Year 2 – £32,666
Year 3 – £26,824 – You will see that within the first three years, your Jaguar XJ has lost £36,951
Year 4 – £22,908 – You will see that within the first four years, your Jaguar XJ has lost £40,867
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It is currently a subsidiary of Indian automobile manufacturer, Tata Motors. The history of the company dates back to Sir William Lyons who founded the then Swallow Sidecar Company, also known as SS Cars Ltd. The company focused primarily on motorcycle sidecar production. The name of the company was however later changed to Jaguar after the Second World War because the company shared the same initials as the notorious SS Nazi police.
The first vehicles to bear the famous Jaguar name were the SS90 and 100 models, which were 2.5 litre saloon sports models. Jaguar was sold to The British Motor Corporation in 1968 which merged with Leyland Motor Corporation. It was soon nationalised by the British Government and known as British Leyland.
In 1990, the company was privatised and acquired by American automaker giant Ford, who would famously never earn a profit from its ownership. In 2008, Tata Motors took thr batten from Ford who remain the current owners.
The company has three UK facilities in Coventry, Warwickshire and Birmingham. It also holds Royal Warrants for the British Royal Family and provides vehicles to HM Queen Elizabeth II, HRH Prince Charles and also the British Prime Minister.
Jaguar is also well-known for its success in Motorsports racing, in particular in the Le Mans 24 Hours competitions. When Ford took ownership, it attempted to utilise its successful racing past and set up its own F1 team called Jaguar Racing. However because of limited success, it was sold to Red Bull Racing.
Jaguar, along with Lotus, Mira and Caparo have set up a luxury hybrid executive sedan project called 'Limo-Green'. China and the Middle East are currently the most popular markets. Jaguar's protect portfolio consists of the following successful models: The F type, XJ, XK, XF, XF Sport brake and R models.