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Shortfall Gap Insurance for your Range RoverRange Rover Shortfall insurance

 

What level of cover can Shortfall Insurance provide to your Range Rover?

 

Gap Insurance is like any other insurance and is a form of financial protection that looks to protect you and your vehicle from the effects of market value depreciation. There are three forms of Gap Insurance for you to choose from, all of which have different capabilities and ways of protecting each and every circumstance.

 

The three forms of Gap Insurance are as follows, Finance and Contract Hire Gap Insurance, Return to Invoice Gap Insurance and Vehicle Replacement Gap Insurance. Finance and Contract Hire Gap Insurance will cover the financial shortfall that is the difference between the market value of your vehicle on the day it was written off and the outstanding finance of which you have remaining on your Range Rover model.

 

Return to Invoice Gap Insurance will cover the difference between the market value of your vehicle on the day it was written off and the original invoice price of which you paid for your Range Rover model.

 

Vehicle Replacement Gap Insurance will cover the difference between the market value of your vehicle on the day it was written off or stolen and the average cost to replace the vehicle with the same make, model and specification as your vehicle was on the day of purchase.  The different Gap Insurance types and levels of cover are explained further on the tabs to the left.

 

Before you read the examples, please consider the following facts:

 

A total of 600,000 vehicles are written off or stolen within the U.K. each year and of that figure an approximate 100,000 are stolen. A total of 1600 vehicles a month are stolen using the keys and a considerable amount of that figure are as a result of a burglary.

 

Based on the fact that your own insurance company are only ever legally obliged to offer you the value of your Range Rover on the day it was written off and remembering that the average vehicle is estimated to depreciate up to 50 % within a three year period, means that if your Range Rover is written off there could be serious finanical ramifications.

 

You could be left having to fund a Range Rover you no longer have or having to dig deep into any capital you may have.

Shortfall Vehicle Replacement Gap Insurance for your Range RoverRange Rover Vehicle Replacement Insurance at Shortfall

 

Vehicle Replacement Insurance is said by many in the automotive industry to be the most comprehensive and universal levels of cover available for you to choose from. This is because of the ability to protect not only the depreciation in the market value of your Range Rover but also the appreciation in the cost of a new Range Rover.

 

Range Rover models are high value vehicles that are in high demand and will appear to continue to be in demand in the future, which can only mean that prices will continue to rise.

 

Vehicle Replacement Gap Insurance will cover the financial shortfall that is the difference between the market value of your Range Rover on the day it was written off or stolen and the average cost to replace the vehicle with the same model, mileage and specification as yours was on the day of purchase.

 

Please see the example below of John and his Range Rover which we hope will help you understand how important protecting your Range Rover with Vehicle Replacement Gap Insurance is:
 

John pays £50,000 for his Range Rover Evoque. Three years down the line, his Range Rover is written off. John receives a settlement of £30,000. The cost of a brand new Range Rover Evoque will now cost somewhere in the region of £55,000.

 

This means that if John wants to buy a Brand New Range Rover Evoque he will be £25,000 short as well as owing any outstanding finance. However, with a Vehicle Replacement Gap Insurance policy, John was returned to the replacement cost which is £55,000. As a result, all outstanding finance was cleared and the full balance, deposit and equity is John's to do with what he pleases.

Shortfall Return to Invoice Gap Insurance for you and your Range RoverRange Rover Return to Invoice Gap Insurance at Shortfall

 

Having recently purchased your Range Rover model, it is more than likely that you will have first been introduced to Gap Insurance at your dealership. It is also highly likely that you will have been offered a form of Return to Invoice Gap Insurance.

 

Return to Invoice Gap Insurance is said by many in the industry to be the most popular form of Gap Insurance, due to the level of exposure the level of cover within dealerships. 

 

Put simply, a Return to Invoice Gap Insurance policy will cover the financial shortfall that is the difference between the market value of your Range Rover on the day it was written off or stolen and the original invoice price of which you paid for the vehicle.

 

Below is a step by step example of how Return to Invoice Gap Insurance works:

 

John pays £50,000 for his Range Rover Evoque. Three years down the line, his Range Rover is stolen. John receives £25,000 settlement from his comprehensive motor insurer.

 

John is then left in a position of being £25,000 out of pocket, however, as John has a Return to Invoice Gap Insurance policy from his here at Shortfall, John is returned to the invoice price of his car.

 

Between, both his comprehensive insurer and his Shortfall Insurance, John received his full £50,000. John had a small amount of outstanding finance which was cleared immediately and the full balance, deposit and equity was then John's to do with what he pleases.

Shortfall Finance and Contract Hire Gap Insurance for your Range RoverRange Rover Finance Gap Insurance at Shortfall

 

Finance and Contract Hire Gap Insurance is designed for those who have purchased their Range Rover model through the form of a financial agreement.

 

Finance and Contract Hire Gap Insurance will cover the difference between the market value of your Range Rover on the day it was written off or stolen and the outstanding finance remaining on the vehicle.

 

However, if you have purchased your Range Rover through the form of a financial agreement as well as placing a large deposit on the vehicle, then you may wish to consider a higher level of cover as Finance and Contract Hire Gap Insurance cannot cover any level of deposit placed on the vehicle.
 

 

Please see the example below of how Finance and Contract Hire Gap Insurance works:
 

John agrees to finance the purchase of his Range Rover over a five year period at a purchase price of £50,000. Four years later, John is involved in an accident and writes the vehicle off. John then receives a settlement of just £18,000 which leaves him owing the finance company £2,000.

 

However, as John has a Finance and Contract Hire Gap Insurance policy, the £2,000 in question is covered and he can now walk away from the vehicle without any financial strings or attachments.

How much will your Range Rover be worth in four years time?Range Rover Depreciation Figures at Shortfall

 

Motoring insurance experts claim that the average vehicle can depreciate by up to 50% within the first three years of ownership. To put this into context of your Range Rover, it is likely that your Range Rover can lose as much as half of its original value by the time it reaches its third birthday.

 

We at Shortfall.co.uk understand that no driver wants to hear about Range Rover depreciation, because after all, you will have just paid a large amount for your Range Rover and now you are told that half of this amount will practically disappear within the first three years. However this is the real life and we belive that it is important to make you aware of Range Rover depreciation in order for you to put into place the relevant Gap Insurance protection.

 

To help you with your understanding, we have drawn together a number of examples of Range Rover depreciation. In these examples, we use figures from 'What Car', who provide historical and current data in order to predict what your Range Rover can be worth in one, two, three and four years time.

 

Example 1 –

Range Rover Evoque 4X4 eD4 150 Prestige 2WV 3dr

 

Invoice price you paid - £37,495

Year 1 – £32,223

Year 2 – £26,749

Year 3 – £22,223 – You will see that within the first three years, your Evoque model has lost £15,272

Year 4 – £19,250 – You will see that within the first four years, your Evoque model has lost £18,245

 

Example 2 –

Range Rover 4X4 3.0 TDV6 Autobiography 5dr

 

Invoice price you paid - £87,910

Year 1 – £75,840

Year 2 – £62,961

Year 3 – £52,280 – You will see that within the first three years, your Autobiography model has lost £35,630

Year 4 – £45,335 – You will see that within the first four years, your Autobiography model has lost £42,575

 

Example 3 –

Range Rover 4X4 5.0 V8 Supercharged 5dr

 

Invoice price you paid - £98,430

Year 1 – £73,045

Year 2 – £60,633

Year 3 – £50,357 – You will see that within the first three years, your Supercharged model has lost £48,073

Year 4 – £43,654 – You will see that within the first four years, your Supercharged model has lost £54,776

History of Range RoverRange Rover History at Shortfall

 

Range Rover is a British luxury SUV marque of Land Rover, which was founded in 1970. The original Land Rover Company was founded by Maurice Wilks in 1948. It is currently owned by India’s largest automobile manufacturing Company, Tata Motor’s.The concept of the Range Rover began in the 1950’s, when the Rover Company aimed to manufacture a up market model of the Land Rover estate.

 

The first concept was known as the Road Rover, however as a result of limited funding available by the company, the concept was shelved. However in 1966, engineers Spencer King and Gordon Bashford brought the concept back to life again with the aim of designing a luxury Land Rover estate car. Range Rover is now in its fourth generation and is seen as the flagship brand of the Land Rover Company. The first generation was between the years of 1970-1996, the second between 1994-2002, the third between 2002-2012 and the fourth since 2012.

 

The Company has in the past been criticised for its record on CO2 emissions and was subject to a range of environmental campaigns by Green Peace. However the Company has since designed models with lower CO2 emissions to cater for the ever growing important green vehicle market. Range Rovers are manufactured in Land Rover Solihull plant. The current Range Rover portfolio consists of the following successful models: Defender, Freelander 2, Evoque, Discovery 4, Sport and the All New Range Rover.