Gap Insurance is designed to run alongside your comprehensive insurance and depending on the level of cover you opt for, either, pay you the amount of money you need to return you back to the original invoice price you paid for your Seat (Return to Invoice), pay you the amount of money you need to purchase another Seat the same age, mileage and condition as your Seat originally was when you first purchased it (Vehicle Replacement) or pay your finance company the outstanding balance that you are liable for, allowing you to walk away from the finance agreement without any financial liabilities (Contract Hire/Finance Gap).
At Shortfall.co.uk you can find prices for as low as £39.99 inclusive of insurance premium tax. All our policies are genuine, tried and tested and are all respected throughout the Gap Insurance industry.
Please consider the following facts:
In the UK each year, an estimated 600,000 vehicles are written off.
An estimated 70% of cars are stolen with keys.
More cars that are involved in minor collisions are most likely to be written off than ever before.
Vehicle Replacement Shortfall Insurance will pay the difference between your Seat's motor insurance valuation on the day it is written off or stolen and the amount of money you need to purchase another Seat, the same age, mileage and condition as yours originally was when you first drove it out of the show room. If the original Seat is no longer available, then you will be paid the amount needed to purchase the superseding Seat model.
Vehicle Replacement is therefore designed to protect any increase in your Seat's original invoice price, which may increase for a number of reasons, for example upgraded versions of the model, or an increase in VAT.
Please see the example below of Mary and her seat which we have designed to assist you with your understanding of Vehicle Replacement Gap Insurance:
Mary pays £20,000 for her Seat. Three years later, her Seat is written off as a result of a motoring accident. Mary contacts her comprehensive insurer who pay her a settlement figure of £10,000, the market value of her car at the time. To make matters worse, Mary finds out that the invoice price of her Seat has increased by £1,000.
Without any level of Gap protection, Mary will have to use her own money to purchase another vehicle and/or to pay off any outstanding finance.
Vehicle Replacement Gap Insurance will top up the motor insurer's valuation with the £11,000 that is necessary to be able to purchase another Seat of the same age, mileage, specification etc. Mary now has the full replacement cost of her Seat which she can do with as she pleases, if Mary had acquired her Seat through a finance agreement, then she would have to clear any outstanding balance and the remaining funds would be her to do with as she sees fit.
If the original Seat model is no longer available, then Mary will be paid the amount of money needed to purchase the superseding Seat model.
Return to Invoice Gap Insurance runs alongside your motor insurance and will return you back to the original invoice price you paid for your Seat. If your car is ever unfortunately written off, then Return to Invoice Gap Insurance will top up your motor insurer's valuation with the amount necessary to take you back to the original price you paid.
If you were paying for your Seat through a form of finance agreement, then you can use your settlement payment to pay off any outstanding finance that you may have. If there is any money left over, then that is yours to spend however you see fit.
Please see the example below of Mary and her Seat, to help with your understanding of Return to Invoice Gap Insurance.
Mary pays £20,000 for her Seat. Three years later, Mary awakes to find that her Seat is no longer on her drive way and has been stolen. Mary informs the comprehensive insurer who pay her a settlement figure of £10,000 as this was the market value of the Seat at the time it was written off.
Without any form of Gap Insurance cover, Mary will have no option but to use her own money to purchase another vehicle and/or to pay off any outstanding finance.
Return to Invoice Gap Insurance will pay Mary this £10,000 and return her back to the original invoice price she paid. Again, if Mary was paying for her Seat through a form of finance agreement then she can pay any outstanding finance and any money left over is hers to do however she sees fit.
Finance and Contract Hire Gap Insurance will cover the difference between your Seat's valuation on the day it is written off or stolen and the total amount you have outstanding on your finance agreement. It is designed to clear any outstanding balance and leave you to walk away with no financial liabilities.
Please see the below example of Mary and her Seat to help with your understanding of Finance and Contract Hire Gap Insurance.
Mary takes out a four year finance agreement. Two years later, Mary is involved in a motoring accident that means her Seat has been written off. Mary's comprehensive motor insurance pays the market valuation of her Seat, though there is still £5,000 outstanding on the finance agreement. Without any level of Gap cover, Mary will have no option but to use her own money in order to pay the finance company and clear the outstanding balance.
Finance and Contract Hire Gap Insurance pay the outstanding £5,000, clearing the balance and allowing Mary to walk away with no financial liability.
Motor insurance experts claim that the average vehicle can depreciate by up to 50% within the first three years. To put this context, your Seat can depreciate by up to 50% within the first three years of ownership.
We at Shortfall.co.uk understand that no driver whatsoever wants to hear about depreciation. After all, you will have just paid a considerably large amount for your Seat and then now you are told that half of this amount will in theory vanish by the time your Seat reaches it's third birthday. However we believe that it is important to make you aware of Seat depreciation in order to allow you to put into place the relevant Shortfall Insurance protection.
On this page we have drawn up a number of examples of Seat depreciation. Here we have used figures from 'What Car' who provide historical and current Seat data in order to predict what your Seat can be worth in one to four years time.
Example 1 –
Seat Altea Hatchback 1.2 TSI SE 5dr
Invoice price you paid - £17,790
Year 1 – £8,352
Year 2 – £6,853
Year 3 – £5,652 – You will see that within the first three years, your Altea model has lost £12,138
Year 4 – £4,802 – You will see that within the first four years, your Altea model has lost £12,988
Example 2 –
Seat Alhambra MPV 2.0 TDI 140 Ecomotive SE 5dr
Invoice price you paid - £26,915
Year 1 – £15,627
Year 2 – £12,852
Year 3 – £10,551 – You will see that within the first three years, your Alhambra has lost £16,364
Year 4 – £9,027 – You will see that within the first four years, your Alhambra has lost £17,888
Example 3 –
Seat Altea Hatchback XL 1.6 TDI 105 Ecomotive SE 5dr
Invoice price you paid - £19,865
Year 1 – £10,475
Year 2 – £8,600
Year 3 – £7,050 – You will see that within the first three years, your Altea model has lost £12,815
Year 4 – £6,025 – You will see that within the first four years, your Altea model has lost £13,840
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SEAT is a Spanish automobile manufacturer, which was founded in 1950. The company is currently owned by German automaker Volkswagen. SEAT is an acronym for Sociedad Espanola de Automoviles de Turismo.
Pre 1950, Spain was economically underdeveloped and had no significant automobile market. To take advantage of this gap, the Spanish bank ‘Banco Urquijo’ along with the several small-scale Spanish automobile companies formed SEAT with the goal of establishing Spain’s only mass production car maker. This plan was supported by the Spanish government who would take full control of the company.
The Spanish government searched for a foreign partner with expertise in the automobile market. It would partner with Italian automaker Fiat, who would exchange its expertise for a small company stake. This would be the start of SEAT's successful history. The company would go on to play a significant role in Spain’s economic development as it began the shift from an agriculture based economy to an industrialised based economy. SEAT introduced its first car in 1953, which was known as the 1400 model. This car was designed for the growing taxi market. In 1957, the successful 600 model was introduced to cater for the growing Spanish middle class. In 1965 the company exports its first car to Columbia.
In 1974, the 2-millionth car is produced and by 1976, the 3-millionth. In the 1980’s, the partnership with Fiat began to cause problems within the management. In 1982 the two companies departed. However it was not long until the German automaker giant Volkswagen would acquire a 50% stake in SEAT in 1986 which increased to 99.99% in 1990. The company is the official sponsor of the UEFA Europe League. The current SEAT portfolio consists of the following successful models: Range, MII, Ibiza SC, 5DR and ST, Toledo, Leon, Altea, Exeo, Alhambra and the Ecomotive.