Shortfall Gap Insurance can pay you the difference between your comprehensive insurers settlement payment, which will be the market value of your Maserati at the time it was written off or stolen and depending on what type of policy you may have, either return you to the original invoice price you paid for your Maserati (Return to Invoice), pay any outstanding finance that you may have in place (Contract or Finance Gap) or pay you the cost to replace your Maserati with another Maserati, the same age, mileage and condition as yours originally was when you first drove it out of the show room (Vehicle Replacement).
This page has been designed to assist your understanding of Gap Insurance. That is why you will find three examples of our three forms of Gap Insurance : Return to Invoice, Vehicle Replacement and Contract Hire/Finance Gap. In these examples, we use Emma and her Maserati Granturismo.
Before you read the examples, please consider the following facts:
An estimated 600,000 vehicles are written off in the UK each year
The average vehicle can depreciate by up to 50% in the first three years, including your Maserati
Your comprehensive insurer will only pay you the market value of your Maserati at the time it was written off or stolen.
Vehicle Replacement Shortfall Insurance can pay you the difference between your comprehensive insurers settlement payment, which will be the market value of your Maserati at the time it was written off or stolen and the amount you now need to purchase another Maserati of the same age, mileage and condition as yours originally was when you first drove it out of the show room.
Please note that if your original Maserati model is no longer available, then you will be paid the relevant amount to purchase the superseding Maserati model.
The invoice price of your original model may increase for a range of reasons, for example, if Maserati introduce an upgraded version of your model, if the government increase VAT or if the price of oil, steel and other raw materials increase. Even public opinion can effect the price you pay, so this means that simply being paid the full invoice price you originally spent is not a guarantee to be able to buy another Maserati, at least no without using your savings.
Lets look at Emma and her Maserati and how her Vehicle Replacement Shortfall Insurance performs when it is written off
Emma purchases a Maserati Granturismo for £49,000
Three years later, Emma is involved in a motoring accident that unfortunately writes off her Maserati
Emma receives a settlement payment of £24,500 from her comprehensive insurer, given that this was the market value of her Maserati at the time it was written off or stolen
To make matters worse, Emma is informed by the local Maserati dealership that the invoice price of her Maserati has increased by £6,000 to £55,000
Without any form of Shortfall Gap Protection, Emma may have no chose but to use her own hard earned savings or take on extra financial commitments to purchase another Maserati or to pay off any remaining finance.
Vehicle Replacement Shortfall Insurance will pay Emma a second payment of £31,500 which will allow her (after any finance has been cleared) to purchase another Maserati.) She now has the full replacement cost back. If Emma paid for her Maserati using a form of finance then Emma will need to settle the agreement. However, with a Shortfall Finance and Contract Hire Gap Insurance policy, the outstanding will be cleared and the remaining funds, the deposit she paid, the equity she generated while making her payments and any inflationary increased costs are now Emma's to do with as she wish's.
Return to Invoice will simply bridge the gap and pay you the difference between what you receive from your comprehensive insurer, which will be the market value of your Maserati at the time it is written off or stolen and the original invoice price you paid for your Maserati.
If you were paying for your Maserati through a form of finance agreement, you will be expected to use this Gap Insurance settlement payment to pay off any outstanding finance that you may be liable for. If there is an amount left over, for example the deposit, and any equity you accrued while making your payments is yours to spend however you see fit.
Please take a look at the example of Emma and her Maserati and see her Return to Invoice Gap Insurance perform when her car is written off:
Emma purchases a Maserati Granturismo for £49,000
Three years later, she awakes to find that her Maserati has been stolen
Emma receives a settlement payment of £24,500 from her comprehensive insurer, given that this was the market value of her Maserati at the time it was written off
Without any form of Gap cover, Emma may have no option but to use her own savings or even take on financial commitments to purchase another Maserati or to pay off any outstanding finance.
Return to Invoice Shortfall Insurance will pay Emma this second payment of £24,500 and return her to the original invoice price she paid for her Maserati. Emma has now been returned to the full invoice price of £49,000 which she can spend as as wish's.
If Emma was paying for her Maserati through a form of finance agreement, she will be expected to use this amount to pay off any outstanding balance and any remaining funds, then she is free to spend however she see's fit.
Contract Hire Gap Insurance can pay you the difference between the market value of your Maserati at the time it is written off or stolen, which you will be paid by your comprehensive insurer and the total outstanding finance you may have on your finance or contract hire agreement that you have in place and used to purchase your Maserati.
Please see the below example of Emma and her Maserati which we have designed to demonstrate the full importance of protecting your Maserati with Contract Hire Gap Insurance:
Emma takes out a four year finance agreement to purchase her Maserati
Two years later, Emma is involved in a motoring accident that thankfully leaves her and the other driver involved unhurt however her Maserati is now written off
Emma receives a settlement payment from her comprehensive insurer, however even after this has been paid towards the outstanding finance balance, there is still £5,000 left outstanding, which Emma is in theory, legally bounded to pay.
Of course Emma could possibly use her own savings or even take on extra financial commitments in order to pay off this outstanding £5,000. Ultimately Emma is now left in the terrible position of having no Maserati to use and paying for a car she now longer has.
In this example Contract Hire and Finance Gap Insurance will send Emma's finance company the outstanding settlement and leave her free from any financial obligations, please note that this policy will not pay any financial penalties that have occurred as a result of Emma making a late payment or arrears.
Our Policies pay £250 towards the cost of your own motor insurance excess.
All Shortfall Policies are backed by the Financial Services Compensation Scheme.
All Shortfall Policies are FCA regulated.
You can transfer your policy at any time you so desire, to any eligible vehicle, at no extra cost.
All Factory Fitted Options for your Maserati are covered.
Our claims team is based in the United Kingdom.
Our customer service call centre is completely based in the United Kingdom.
We cover the cost of your Maserati's paint protection.
We cover the cost of any non transferable warranties.
You will not be charged for the change of a registration number, name or address on a Shortfall Policy.
We do not limit the purchase price of your Maserati to a percentage of any guide price.
We do not have a market value clause on settlement
You are able to defer the start date of your Shortfall Policy, completely free of charge.
You have a 30 day cooling off period with your policy, during which time you have the opportunity to cancel and providing that you have not tried to make a claim, you will be reimbursed fully.
You are able to cancel your policy at any opportunity and receive a pro rate refund, less a nominal administration fee that will be charged by the underwriters.
We hope that these policy features give you some insight into the level of cover that is offered by Shortfall.
Every car will depreciate, no matter what manufacturer is behind it. Motor industry experts claim the average vehicle can depreciate by up to 50% within the first three years. To put this into context, your Maserati can depreciate, so can lose up to half of its value by the time it reaches its third birthday.
We at Shortfall.co.uk understand that no driver whatsoever wants to hear this, because after all, you will have just paid a considerably large amount for your Maserati and only to be told that in theory, half of this amount may possibly vanish within three years.
However we belive that it is essential to make drivers aware of Maserati depreciation rates in order to demonstrate to them the true importance of Shortfall Gap Insurance.
On this page, we have put together three examples of Maserati depreciation. We have taken these figures from 'What Car', who provide historical and current Maserati data and with this, predict what your Maserati will be worth in one, two, three and four years time.
Example 1 –
Maserati Grancabrio Open 4.7 V8 Sport 2dr
Invoice price you paid - £102,615
Year 1 – £78,654
Year 2 – £65,294
Year 3 – £54,263 – You will see that within the first three years, your Grancabrio has lost £48,352
Year 4 – £46,998 – You will see that within the first four years, your Grancabrio has lost £55,617
Example 2 –
Masarti Granturismo Coupe 4.2 V8 2dr
Invoice price you paid - £82,140
Year 1 – £58,870
Year 2 – £48,849
Year 3 – £40,585 – You will see that within the first three years, your has lost £41,555
Year 4 – £35,164 – You will see that within the first four years, your has lost £46,976
Example 3 –
Maserati Grancabrio Open 4.7 V8 2dr
Invoice price you paid - £98,200
Year 1 – £67,974
Year 2 – £56,426
Year 3 – £46,900 – You will see that within the first three years, your has lost £51,300
Year 4 – £40,625 – You will see that within the first four years, your has lost £57,575
Maserati is an Italian luxury sports car manufacturer, which was founded in 1914. The history of Maserati dates back to the Maserati brothers, Alfieri, Bindo, Carlo, Ettore and Ernesto who were all avid car enthusiasts. Three of the brothers used to build Grand Prix cars for Ditatto, however when Ditatto halted its race car production, the brothers would go to form the Maserati Company in 1914 and begin to manufacture and successfully compete in race car competitions.
However by 1937, the brothers began to experience financial difficulties and thus searched for additional support. The brothers would sell the company to the Italian Orsi family, however would remain active within the company. During this ownership, the Maserati name would become established worldwide and would begin to successfully compete against race car giants such as Mercedes and Auto Union (that would later become BMW). The famous 8CTF model won the famous Indianapolis 500 competition, being the only Italian manufacturer to do so.
During the Second World War, the company halted race car production and contributed to the Italian war effort. Post 1945, the company would become involved with fellow Italian manufacturers such as Fiat, Alfa Romeo and Ferrari who would all work in cooperation in improving Maserati cars. Well known race car driver, Argentina Juan-Manuel Fangio raced for Maserati throughout the 1950’s. However as a result of the Guidizzelo tragedy, the company halted its participation in car racing and began to concentrate on road cars.
From 1968, the company was taken over by a range of automakers such as Citroen in 1968, Alejandro de Tomaso in 1975, Fiat in 1993 and also Ferrari in 1997, which would be credited in transforming the company. The company is currently owned by Alfa Romeo as part of the wider Fiat Auto Group. The current portfolio consists of the following successful models: New Quattroporte V8, GranCabrio Range, GranTurismo Range, Quattroporte Range.