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Shortfall Gap Insurance for your SubaruSubaru Shortfall Insurance

 

What level of Shortfall Gap Insurance is best for you and your Subaru?

 

Gap Insurance is essentially the missing piece in the financial puzzle that is the situation of writing a vehicle off. As you may know, if you write your Subaru off a number of years after purchasing the vehicle, it is more than likely that you will receive a fraction of the price you paid for your Subaru model. This is because your comprehensive motor insurer will only pay the market value of your vehicle on the day it was written off or stolen.

 

Due to market value depreciation the value of your Subaru is said to depreciate at a level at which that will halve the value of the vehicle within three years of ownership. Therefore, resulting in you receiving half the value of your Subaru model if you were to write the vehicle off and potentially leaving you with a financial implication of which you cannot withstand.

 

However, this is where Gap Insurance can save you. There are three forms of Gap Insurance available for you to choose from and all of which have different capabilities. The first form of Gap Insurance for you to choose from is Finance and Contract Hire Gap Insurance which will cover the difference between the market value of your vehicle on the day it was written off or stolen and the outstanding finance you have remaining on the vehicle.

 

The second level of cover is Return to Invoice Gap Insurance. Return to Invoice Gap Insurance will cover the difference between the market value of your Subaru model on the day it was written off or stolen and the original invoice price of which you paid for the vehicle.

 

The last level of cover for you to choose from is Vehicle Replacement Insurance. Vehicle Replacement Gap Insurance will cover the difference between the market value of your Subaru model on the day it was written off or stolen and the cost to replace the Subaru with the same model, mileage and specification as yours was on the day of purchase.

Shortfall Vehicle Replacement Gap Insurance for your SubaruSubaru Vehicle Replacement Insurance at Shortfall

 

Vehicle Replacement Gap Insurance is said by many to be the most universal level of cover available for you to choose from. This is because Vehicle Replacement Gap Insurance will not only protect you from any depreciation in the market value of your vehicle but also any appreciation in the cost to buy a new Subaru model with the same mileage, specification and condition as yours was on the day of purchase.

 

Vehicle Replacement 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 cost to replace your Subaru with the same model, mileage and specification as yours was on the day of purchase.

 

Below is an example of how Vehicle Replacement Insurance can work for you and your Subaru ...

 

Dave has recently purchased a brand new Subaru Legacy model for an easy price of £15,000. Three years later, Dave is involved in an accident which leads to his Subaru Legacy model being written off. Several days after the accident, Dave receives a settlement figure of £7,500 from his comprehensive motor insurer.

 

Not only has Dave received a fraction of the invoice price he paid for his Subaru but he has also seen that the cost to buy a new Legacy with the same mileage as his was on the day of purchase has gone up significantly.

 

The cost to buy a new Subaru Legacy is now £17,000, which is £9,500 more than the original settlement Dave received from his comprehensive motor insurer. However, Dave did take out a Shortfall Vehicle Replacement Gap Insurance policy over a five year period with a claim limit of £15,000. As the accident happened in the third year, the vehicle was worth more than it would be in the fifth and therefore Dave only had to use £9,500 of his claim limit.

 

To summarise, between the two insurers, Dave received the full replacement cost of £17,000 as his comprehensive insurer settled at a figure of £7,500 and his Shortfall Vehicle Replacement Insurance policy agreed to pay the difference of £9,500 up to the replacement cost.

 

Buy a Shortfall Vehicle Replacement Insurance policy for your Subaru

Above is an example of how much your Subaru could be worth in a number of years time and a 5% increase in the invoice price and how it could effect your finances. Therefore, why not protect your Subaru model with a Shortfall Vehicle Replacement Gap Insurance policy.

Shortfall Return to Invoice Gap Insurance for you SubaruSubaru Return to Invoice Gap Insurance at Shortfall

 

Return to Invoice Gap Insurance is said to be the most popular form of Gap Insurance, but not through just popularity alone but only through the level of exposure the level of Gap Insurance receives within dealerships. It is more than likely that when you purchased your Subaru model from the dealership that they will have offered you a form of Return to Invoice Gap Insurance.

 

Return to Invoice Gap Insurance will cover the financial shortfall that is the difference between the original invoice price you paid for your Subaru model and the market value of your Subaru on the day it was written off or stolen (i.e the comprehensive motor insurance settlement figure). This will mean that, between the two insurers, you will be returned to the full invoice price you paid for your Subaru model.

 

All outstanding finance will be cleared, if any, and the full balance, deposit and equity on the vehicle is yours to do with what you please. This will give you the ability to walk away from the vehicle without any financial liability and money in your pocket to do with what you please.

 

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

For Example, if you have purchased a brand new Subaru Legacy model for somewhere in the region of £15,000.

 

Three years later, you wake up and your Subaru model has been stolen.

 

Just days later, you receive a settlement figure of £7,500, which is the estimated market value of your vehicle in three years time.

 

This will then leave you with a financial shortfall of £7,500 back up to the invoice price of which you paid for the Subaru Legacy model.

 

However, this is where your Shortfall Return to Invoice Gap Insurance policy can help you. A Return to Invoice Gap Insurance policy will cover the outstanding £7,500 and bring you back up to the full invoice price of the Subaru Legacy model, which is of course £15,000. All outstanding finance will be cleared, if any, and the full deposit, balance and equity you have placed on the vehicle is yours to do with what you please.

Buy Shortfall Return to Invoice Gap Insurance for your Subaru online

Above is a visual example of how much your Subaru could decrease in value over the course of ownership. Therefore, why not protect you and your Subaru model with a Shortfall Return to Invoice Gap Insurance policy.

Shortfall Finance and Contract Hire Gap Insurance for SubaruSubaru Finance Gap Insurance at Shortfall

 

Finance and Contract Hire Gap Insurance is said by many in the industry to be the first ever form of Gap Insurance and many people still see Finance and Contract Hire Gap Insurance as Gap Insurance itself. Finance and Contract Hire Gap Insurance is designed for those who have purchased their Subaru model through the form of a financial agreement. 

 

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 any outstanding finance you have remaining on your Subaru. However, if you have placed a sizeable deposit on the vehicle then a higher level of cover may be more appropriate as Finance and Contract Hire Gap Insurance does not have the ability to cover any level of deposit.

 

Below is a step by step example of how Finance and Contract Hire Gap Insurance works ...

 

In this example Joe has purchased a brand new Subaru Legacy for £15,000 and financed the full invoice price over a five year period.

 

Three years later, Joe is involved in an accident which leads to the writing off of his Subaru model.

 

Several days later, Joe receives a settlement figure of £7,500 from his motor insurer and a seperate figure of £9,500 on the finance agreement.

 

This leaves Joe with an outstanding financial figure of £2,000.

 

However, Joe had taken out a Shortfall Finance and Contract Hire Gap Insurance policy which meant that all outstanding finance was cleared and Joe could walk away from the Subaru model without having to pay for any outstanding finance or being left paying for a vehicle of which he did not have.

How much is your Subaru going to be worth in four years time?Shortfall Subaru Depreciation Figures

 

It is an unfortunate fact but an inevitable one all the same, that every Vehicle will depreciate over time. Experts in the industry actually claim that the average vehicle will lost around half of its value, within it's first three years. Therefore, it is highly likely that your Subaru will depreciate by upto half of it's value, within the first three years of ownership.

 

To help with your understanding of Subaru depreciation, we have taken recent figures from whatcar.com on four different Subaru models, to give some insight into how much your own Subaru is likely to depreciate, over one, two, three and four years. 

 

Example 1:


 

Subaru XV 4X4 1.6i S 5dr


Purchased for: £21,295

 

Year 1:  £11,550

 

Year 2: £9,500

 

Year 3: £7,800

 

Year 4: £6,676

 

In this example, this Subaru model has decreased in value by £13,495 within the first three years and £14,619 within the first four years.

 

Example 2:

 

Subaru Outback Estate 2.0 D S 5dr

 

Purchased for: £28,870

 

Year 1: £19,205

 

Year 2: £15,731

 

Year 3: £12,768

 

Year 4: £10,236

 

In this example, this Subaru model has decreased in value by £16,102 within the first three years and £18,634 within the first four years.

 

Example 3: 

 

Subaru Legacy Tourer 2.0 D S 5dr

 

Purchased for: £26,900

 

Year 1: £16,872

 

Year 2: £13,867

 

Year 3: £11,389

 

Year 4: £9,714

 

In this example, this Subaru model has decreased in value by £15,511 within the first three years and £17,186 within the first four years. 

 

Example 4:

 

Subaru BRZ Coupe 2.0i SE 2dr

 

Purchased for: £24,995

 

Year 1: £16,874

 

Year 2: £14,025

 

Year 3: £11,650

 

Year 4: £10,075

 

In this example, this Subaru model has decreased in value by £13,345 in the first three years and £14,950 in the first four years. 

 

We hope that this gives you some insight into how drastically vehicles can depreciate over time, even in their first few years, with prices as little as £39 for Shortfall Gap Insurance products, protect your Subaru today. 

Recent Subaru News at ShortfallShortfall Subaru News

 

Subaru to launch brand new WRX in the summer of 2014.

 

The new Subaru WRX now on sale in the UK.

 

Subaru tease a brand new Forester Sti model ahead of a LA debut later this month. 

 

Subaru have recently made an appearance at the Geneva Motor Show 2015 with an exciting number of models.

Subaru is a Japanese automobile manufacturer, which was founded in 1953.Subaru History at Shortfall

 

Subaru is part of the Fuji Heavy Industries group and is also partly owned by Toyota.

 

The name Subaru originates from the Japanese name for Pleiades, which is an open star cluster, also referred to Seven Sisters. This shaped the basis of the company’s logo, which consists of six stars behind a blue sky. Although it is unknown why there are not seven stars.

 

The history of the company dates back to 1915 with the Aircraft Research Laboratory. The company manufactured aircrafts for the Japanese World War Two effort. In 1945 it was renamed Fuji Sangyo Co Ltd. In 1953, Kenji Kita, the CEO of the company decided to diversify into the automobile market. The first car to bear the Subaru name was the 1500 model that was introduced in 1954. Other successful models soon followed such as the 360 and 1000.

 

In 1968, as a result of a Government shake up, fellow Japanese company Nissan acquired a 20% stake in the company. During this partnership, Subaru was modernised and successfully taken into new international markets. The 20% stake was sold to General Motors in 1999 who then sold its stake to Toyota in 2005 because of limited Success.

 

Subaru is very active in motor sports, successfully racing in Formula One and the World Rally Championships.

 

The company plays a leading role in research and development of eco-friendly and electric cars. A large majority of its modern models are built from highly recyclable materials. In 2006 it was awarded the United States environmental protection agency’s gold achievement award.

 

In 2011 the company diversified into the cartoon market with the production of its wish upon the Pleiades series, in which the Subaru car plays the leading character.

 

Subaru automobile portfolio consists of the following successful models: WRX STI, BRZ, XV, Outback, Legacy, Exiga, Justy, Tribecca, DEX, Forester.