At Shortfall.co.uk we can provide Gap Insurance for your Toyota. Gap Insurance is a form of financial protection that is designed to protect you against the costs of depreciation should your vehicle be declared a total loss. The average vehicle will lose approximately 50% over a three year term and if your vehicle was declared a total loss, i.e stolen and not recovered or written off in an accident for example, your motor insurance company would only ever pay the value of the vehicle at that time.
This could leave you in a very vulnerable position financially. This is where Gap Insurance can protect you from the effects of depreciation.There are three main types of Gap Insurance you can purchase for your Toyota. These are dependent on the way in which you have purchased the vehicle and different purchase methods will result in one type being more suitable than the other.
Return to Invoice Gap Insurance
This form of Gap Insurance is designed to protect the price you have paid. In the event of a total loss, this policy will bridge the gap between your motor insurance settlement and the original invoice price you have paid. Example, let's say you have paid £18,000 for your Toyota, three years later it's stolen and not recovered and your motor insurance company only offer you £9,000. This policy will pay an additional £9,000 to top you back up to the original purchase price of £18,000.
Vehicle Replacement Gap Insurance
This form of Gap Insurance is designed to protect the replacement cost of the vehicle. Whilst you may have paid £18,000 as in the example above, to buy that same car again three years in the future, may now be £20,000. In the event of a total loss, this policy will bridge the gap between your motor insurance settlement and the replacement cost of another 'like for like' Toyota at that stage in time. Example, let's say you have paid £18,000 for your Toyota, three years later it's declared a total loss and your motor insurance company only offer you £9,000. The replacement cost at that point, due to inflation and price increases, is now £20,000. This policy will pay an additional £11,000 to top you back up to the replacement cost of £20,000.
Lease & Contract Hire Gap Insurance
This type of Gap Insurance is different to the types of Gap Insurance listed above. This type is only suitable for vehicles that have been purchased on a form of lease or contract hire where you don't have the option to keep the vehicle, instead you have to hand it back. This policy is designed to bridge the gap between your motor insurance settlement figure and the amount outstanding on your lease/contract hire agreement. Therefore, resulting in you having no outstanding financial liability.