Gap Insurance is a policy that runs alongside your own motor insurance companies policy and makes sure that should your Jeep join the estimated hundreds of thousands of other vehicles written off each year that you are not left out of pocket or even worse left paying for a Jeep that you no-longer have.
Our Jeep gap insurance page has been designed to support help. Here you will find three examples of the three different types of Gap Insurance: Return to Invoice, Vehicle Replacement and Contract Hire.
In these examples we use Katie and her Jeep Compass, which she paid £20,000. We hope that by using the example of Katie, it will assist in recognising the full importance of Gap Insurance for your Jeep and how the various levels of cover could work for you.
We are regularly credited by our customers for taking this simple approach to our Website. Unlike other online providers, we refuse to write the long, complicated, insurance jargon filled explanatory articles on Shortfall Insurance, as we think that it is counterproductive to the aim of the articles – to support customers with their understanding of Shortfall Insurance and how it can protect their Jeep, and most importantly, their finances.
At Shortfall.co.uk, customers find that they access to a range of polices for as low as 85% of the average Jeep dealership price. We understand that the majority of our customers first learn about Gap Insurance while at their local Jeep dealership. Here they are quoted anything in between of £399 to £1000. At Shortfall.co.uk, customers can find policies for as low as £99.99 inclusive of insurance premium tax.
We are proud that all our policies are genuine, tried and tested and most importantly, are all supported by the financial compensation scheme in fact a number of our policies are currently subject to a range of awards for both cost and quality.
Before you read the examples, please consider the following
600,000 vehicles are written off each year
The average vehicle can depreciate by up to 50% in the first three years, including your Jeep.
Your comprehensive insurer is only ever legally bound to pay you the value of your Jeep on the day it was written off.
Vehicle Replacement is seen by many as an upgraded version of the basic Return to Invoice Gap Insurance as instead of simply protecting a physical amount of money ( the invoice price you paid ) it protects a standard of car.
This is because vehicle replacement insurance will pay the difference between your Jeeps valuation on the day it is written off and the amount of money you need to spend to buy another Jeep the same age, mileage, condition and specification as your was on the day that you drove it home from the dealership.
If that model Jeep is no longer available then settlement will be based on the superseding model and in all cases as finding vehicles is not our field of expertise you will be paid the cash equivalent .
Prices rise, and even if absolutely nothing happened to your Jeep and you wanted to replace it in say three, four or five years time you would not be surprised to be asked to pay more. If Jeep introduces an upgraded version of her Compass model, raw materials costs change, manufacturers increases, labour rates all mean that simply getting back the full purchase price of your Jeep is not a guarantee to be able to buy another on a like for like basis.
So, lets look at Katie and what happens when her Jeep is written off?
Katie purchases a Jeep Compass for £20,000
Three years later, it is written off as a result of being stolen
Katie receives a settlement payment of £10,000 from her comprehensive insurer, given that this was the market value of her Jeep when it was stolen. Without any form of gap insurance or vehicle replacement and without using any savings this is the only amount that Katie has to replace her Jeep and or clear any finance.
To make matter worse Katie is informed by her local Jeep dealership that Jeep have just upgraded the model and that the invoice price of her Jeep Compass has increased by £5,000 to £25,000
A Vehicle Replacement Insurance policy would pay Katie a second payment of £15,000. This means that between her two insurance companies she now has the full replacement cost.
If Katie had paid for her Jeep using a form of finance then from the full £25,000 ( after vehicle replacement claim ) replacement cost Katie would be legally bound to clear any outstanding finance, the the surplus funds would be hers to spend as she wants to.
Above is an example of just how much value your Jeep could lose over a period of 5 years time, as well as any possible increase in the invoice price of your Jeep. Therefore, why not be safe and sure by protecting your finances with a Shortfall Vehicle Replacement Insurance policy for your Jeep today.
Simply put, Return to Invoice Gap Insurance pays the difference between your Jeeps valuation on the day it is written off and the original invoice price you have paid for your Jeep. In essence it is simply topping up your own insurance companies settlement back up to the invoice price you paid.
This means that if you have paid cash for your Jeep then you now have the full purchase price back to be able to replace your Jeep.
If you have paid for your Jeep using a form of finance then as you have the full purchase price back you can use this to be able to clear any finance if possible and then the rest of the funds, the deposit you paid, the equity that you have generated while making your payments is yours to do with as you see fit.
So, lets look at Katie and what happens when her Jeep is written off and how her return to invoice gap insurance works.
Katie purchases a Jeep Compass for £20,000
Three years later, it is written off as a result of being stolen
Katie receives a settlement payment of £10,000 from her comprehensive insurer, given that this was the market value of her Jeep when it was stolen. Without any form of gap insurance this is the only amount ( without using savings or taking on additional financial commitments ) that Katie has to be able to replace her Jeep.
A Return to Invoice Gap Insurance would pay Katie another £10,000. She now has the full purchase price back.
If Katie had pad for her Jeep using a form of finance then please remember that she would have to clear any finance and then what ever is left is hers to spend as she wishes.
Simply put, if your Jeep is written off it pays the difference between your Jeeps valuation on the day it was written off and clears your outstanding financial liability. Yes you still have no Jeep to use and yes you will still have to find and another deposit or advanced rentals in order to be able to buy another but thankfully you can never be in the position where you are left paying for a Jeep that you no-longer have.
Lets take another look at Katie and her Jeep Compass.
Katie takes out a five year finance agreement to purchase her Jeep Compass which means that she will pay payments of £295 per month.
Three years later, she is involved in a motoring accident, thankfully Katie walks away with minor cuts and bruises but her Jeep is written off.
Katie's motor insurance company send her fiances company the value of her Jeep on the day it was written off however there is still a shortfall between what Katie owed to the finance company and what her Jeep was worth of £3,895 which she is still legally responsible for.
Finance and Contract Hire/Finance Gap will pay the Katie's insurance companies settlement on the day her Jeep was written off and her outstanding finance meaning that she can walk away with no further financial liability.
Shortfall Policies pay £250 towards your own motor insurance excess cost.
You can transfer your Shortfall Policy at any time, to any vehicle that is eligible, completely free of charge.
All Factory Fitted options for your Jeep are covered.
We cover the cost of your Jeep's paint protection.
We cover the cost of paint protection for your Jeep.
We cover the cost of any non transferable warranties.
We do not limit the purchase price of your Audi to a percentage of any guide price.
We do not have a market clause on settlement.
We do not charge for changing a registration number, address or name on your policy.
Our customer service call centre is based in the United Kingdom.
Our claims team are based in the United Kingdom.
All Shortfall Policies are completely Regulated by the FCA.
All Shortfall Policies are backed by the Financial Services Compensation scheme.
You have a 30 day cooling off period, during this time you are able to cancel your policy and providing you have not attempted to make a claim, you will receive a full refund.
You are able to cancel your policy at any point and receive a pro rata refund, less a nominal administration fee that is charged by the underwriters.
You are able to defer the start of your policy completely free of charge.
We hope that you can now appreciate that when it comes to Shortfall, our Policies are amongst the most comprehensive that are available in the United Kingdom today.
Motor insurance experts claim that the average vehicle can depreciate by up to 50% of its original value. In other words, it is very possible that your Jeep may lose up to half of its original value within the first three years of ownership.
As you may already know, if in the unfortunate case your Jeep is written off, you will only be paid the market value of your Jeep at the time it was written off or stolen. If you take into account that the average vehicle can lose up to 50% of its original value, this can possibly have serious consequences to your finances.
We at Shortfall.co.uk understand that drivers do not want to hear about depreciation, given that it is very likely that you will have just paid a large sum for your Jeep and now told that half of this large sum will basically disappear in three years time.
On this page you will find that we have put together a number of examples of Jeep depreciation. In these examples we have taken figures from 'What Car', which provide historical and current data in order to predict what your Jeep could be worth in one, two, three and four years time.
Example 1 –
Jeep Wrangler 4x4 2.8 CRD Sahara 3dr
Invoice price you paid - £28,665
Year 1 – £13,748
Year 2 – £11,254
Year 3 – £9,181 – You will see that within the first three years, your Jeep Wrangler has lost £19,484
Year 4 – £7,765 – You will see that within the first four years, your Jeep Wrangler has lost £20,900
Example 2 –
Jeep Grand Cherokee 4x4 3.0 V6 CRD Limited 5dr
Invoice price you paid - £38,615
Year 1 – £20,609
Year 2 – £17,133
Year 3 – £14,233 – You will see that within the first three years, your Jeep Grand has lost £24,382
Year 4 – £12,307 – You will see that within the first four years, your Jeep Grand has lost £26,308
Example 3 –
Jeep Compass Crossover 2.0 Sport 2WD 5dr
Invoice price you paid - £17,465
Year 1 – £8,259
Year 2 – £6,783
Year 3 – £5,582 – You will see that within the first three years, your Jeep Compass has lost £11,883
Year 4 – £4,756 – You will see that within the first four years, your Jeep Compass has lost £12,709
Example 4 –
Jeep Wrangler 4x4 2.8 CRD Sahara 5dr
Invoice price you paid - £30,335
Year 1 – £14,530
Year 2 – £11,906
Year 3 – £9,704 – You will see that within the first three years, your Jeep Wrangler has lost £20,631
Year 4 – £8,209 – You will see that within the first four years, your Jeep Wrangler has lost £22,126
Example 5 –
Jeep Grand Cherokee 4x4 3.0 V6 CRD Overland 5dr
Invoice price you paid - £45,615
Year 1 – £24,810
Year 2 – £20,609
Year 3 – £17,133 – You will see that within the first three years, your Jeep Grand has lost £28,482
Year 4 – £14,829 – You will see that within the first four years, your Jeep Grand has lost £30,786
Jeep is a marque of the Chrysler Group.
The history of Jeep dates back to 1908 when John Willy founded the Willys-Overland Motor Company. In 1940, the US military took bids from a range of automobile manufacturers to design and build a vehicle tailored around specific military needs, obviously to cope with the harsh demand of war. In cooperation with Ford and American Bantam, Willys built the Willy GP model in 1941. The Company was seen to have significantly contributed to the American war effort and therefore became well established post 1945.
Both Willys and Ford took one another to court over the Jeep brand name. Willys eventually won and began to manufacture the civilian version, known as CJ (Civilian Jeep). It was introduced to the market in 1945 and received orders a large amount of orders from American allies throughout the world.
In 1953, the Willys company was sold to Kaiser Motors. In 1970, it was sold to American Motors Corporation. In 1987, American Motors Corporation was sold to Chrysler. In 1998, Dailmer-Benz acquired a stake in Chrysler and formed Daimler-Chrysler AG.
Although there are many explanations on where the name Jeep originates from, the most widely held theory is that when the vehicle was known as G-P (Government Purpose) in the war, many claim that the initials G-P were often slurred into Jeep.
Legendary Ferrari founder once said that "Jeep is America's only real sports car".