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Shortfall Gap Insurance for your VolkswagenVolkswagen Shortfall Insurance

 

Why Buy Shortfall Gap Insurance for your Volkswagen?

 

It is more than likely that during the process of buying your Volkswagen model that you will have been introduced to Gap Insurance and following that introduction you have decided to further your knowledge by researching Gap Insurance online. It is also highly likely that you will have been offered a form of Gap Insurance at a standard price of £395 which is the average price for a dealership quote across the UK. You may now be wondering why Gap Insurance is less expensive online.

 

We at Shortfall are proud to state that our prices are checked on a daily basis and wish to reitterate that there is no compromise on the level of cover or the features of our policies and simply that the difference in price is due to other external factors.

 

One reason that your dealership may be more expensive is that a dealership will have to charge a higher rate of insurance premium tax, the other being that as Shortfall is part of one of the largest independent Gap Insurance retail groups within the U.K, we have the ability to reduce prices due to the level of custom we receive compared to that of a dealership.

 

As you may now be aware, there are three forms of Gap Insurance for you to choose from, all of which have different capabilities and ways of protecting you and your Volkswagen.  The first of which is Finance and Contract Hire Gap Insurance. This form of Gap Insurance will cover the financial shortfall that is the difference between the market value of your Volkswagen on the day it was written off or stolen and the outstanding finance you have remaining on the vehicle.

 

The second form of Gap Insurance for you to choose from is Return to Invoice Gap Insurance. Return to Invoice Gap Insurance will cover the difference between the market value of your Volkswagen on the day it was written off or stolen and the original invoice price you paid for your VW model.

 

The last form of Gap Insurance for you to consider is Vehicle Replacement Insurance. Vehicle Replacement Insurance will cover the difference between the market value of your Volkswagen model 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 yours was on the day of purchase.

 

Why do you need Shortfall Gap Insurance for your Volkswagen?

 

Due to market value depreciation, if you were to write your Volkswagen model off three years after purchase, then you would only ever receive a fraction of the price you paid. This is because your Comprehensive Motor Insurer would only ever pay the market value of your Volkswagen on the day it was written off. Market Trade experts have actively predicted that the average vehicle will lose up to half of its original value within the first three years.

 

It is also worth considering that a total of 600,000 vehicles are written off in the U.K within a 12 month period and that 100,000 models are stolen. Another scary figure to consider would be that 19,200 models a year are stolen using the keys and as a possible result of a burglary.

Shortfall Vehicle Replacement Insurance for your VolkswagenVauxhall Vehicle Replacement Insurance at Shortfall

 

Vehicle Replacement Insurance is said by many in the Automotive industry to be the highest level of Gap Insurance available for you to choose from. This is because, this level of cover will not only protect you against any level of depreciation but also protect you from any increase in the cost to buy a brand new Volkswagen model in the future.

 

As Volkswagen models are high value and in high demand, invoice prices will continue to rise accordingly. However, Vehicle Replacement Insurance could protect you from the increase in the invoice price of a new Volkswagen. How does Vehicle Replacement Gap Insurance work?

 

Vehicle Replacement Gap Insurance will cover the difference between the market value of your Volkswagen model on the day it was written off or stolen and the cost to replace your Volkswagen with the same model, mileage and specification as yours was on the day of purchase. This would result in you counter acting any rise in the invoice price and protecting you from the effects of depreciation. Gap Insurance is designed to put you as the motorist back in the same position you were in prior to the purchase of the vehicle.

 

Below is a step by step example of how Vehicle Replacement Gap Insurance can protect you and your Volkswagen ...

 

 In this example we will use a brand new Volkswagen Golf purchased at a discounted price of £15,000

 

Unfortunately, the Volkswagen Golf is involved in an accident and is written off just three years after purchase

 

Several days later, you receive a settlement figure of £7,000 from your comprehensive motor insurer

 

The Replacement cost of the Volkswagen Golf is £16,000 which is a £1,000 more than the discounted price you paid for the vehicle

 

 Therefore, a Vehicle Replacement Gap Insurance policy will cover the difference between the £7,000 settlement and the £16,000 replacement cost which is a £9,000 difference

 

Your Shortfall Vehicle Replacement Gap Insurance policy will cover the £9,000 difference in the example above. A Vehicle Replacement Gap Insurance policy has the ability to cover any increase in the invoice price as well as any discounts you had during the purchase process of your Volkswagen.

Shortfall Vehicle Replacement Insurance for Volkswagen

The above illustration has been designed to assist your understanding of both depreciation and the possible inflation and the shortfall/gap that you could possibly face at the end of each year. So, why not protect yourself and your Volkswagen with a Shortfall Vehicle Replacement Gap Insurance policy today.

Shortfall Return to Invoice Gap Insurance for your VolkswagenVolkswagen Return to Invoice Gap Insurance at Shortfall

 

Why buy Shortfall Return to Invoice Gap Insurance for your Volkswagen?

 

We at Shortfall understand that the first time you may have been introduced to Gap Insurance will have been during the purchase process of your Volkswagen at your local dealership. We also understand that the Gap Insurance you are more than likely to have been offered is Return to Invoice Gap Insurance.

 

Return to Invoice Gap Insurance is said to be the most popular form of Gap Insurance within dealerships across the U.K. Return to Invoice Gap Insurance will cover the financial shortfall that is, the difference between the market value of your Volkswagen model on the day it was written off or stolen and the original invoice price you paid for the vehicle. Therefore, through both your comprehensive motor insurer and your Shortfall Return to Invoice Gap Insurance policy you will be returned to your full invoice price, resulting in any outstanding finance being cleared if any, and the full balance, deposit and equity is yours to do with what you please.

 

Below is a step by step example of how Shortfall Return to Invoice Gap Insurance can work for you ...

 

For example, you have recently purchased a brand new Volkswagen Golf for £16,000

 

Unfortunately, you are involved in an accident and just three years after purchasing the Volkswagen Golf it is written off

 

Several days later you receive a settlement of £8,000 from your motor insurer

 

As you can see, this leaves you with a financial shortfall of £8,000 back to the invoice price of the vehicle

 

However, as you have purchased a Shortfall Return to Invoice Gap Insurance policy, you will receive the difference between the market value of your vehicle on the day it was written off (i.e the motor insurance settlement of £8,000) and the original invoice price you paid for the vehicle (i.e the £16,000). This will result in any oustanding finance being cleared, if there is any, and the full deposit, balance and equity is yours to do with what you please.

Buy Shortfall Return to Invoice Gap Insurance for Volkswagen Online

The above illustration has been constructed to assist both your knowledge and understanding of market value depreciation and the effect it could have on your finances. So, why not protect yourself and your Volkswagen with a Shortfall Return to Invoice Gap Insurance policy.

Shortfall Finance and Contract Hire Gap Insurance for your VolkswagenVolkswagen Finance Gap Insurance at Shortfall

 

Why buy Shortfall Finance and Contract Hire Gap Insurance for your Volkswagen?

 

Finance and Contract Hire Gap Insurance is designed for those who have purchased their Volkswagen model through the form of a financial agreement and only wish to protect the finance on the vehicle in the event of the Volkswagen model being written off or stolen.

 

Put simply, Finance and Contract Hire Gap Insurance will cover the difference between the market value of your VW model on the day it was written off or stolen and the outstanding finance on the vehicle, meaning that you get to walk away from the vehicle without any financial liability.

 

As you may already be aware, if you were to write your VW model off a number of years after owning the vehicle, you would only receive the market value of your vehicle on the day it was written off or stolen, which is likely to be a fraction of the price you paid. Through the recent measurement of both current and past depreciation rates, market trade experts have estimated that the average vehicle will lose upto 50% of the vehicles original value within three years of ownership. This could leave you with a financial shortfall and potentially owing your finance company thousands of pounds. However, this is where Finance and Contract Hire Gap Insurance can help you and your Volkswagen model.

 

Below is a step by step example of how Shortfall Finance and Contract Hire Gap Insurance can help you ...

 

For Example, you have recently purchased a brand new Volkswagen Golf for somewhere in the region of £16,000. However, like many of us you did not have £16,000 lying around and decided to finance the full purchase price of £16,000 over a five year period, which is a monthly figure of £266.

 

Three years later, you are involved in an unfortunate accident which results in the vehicle being written off. Several days later, you receive a settlement of £8,000 from your motor insurer and a seperate settlement figure of £10,000 from your finance company. As you can see, you are now left with a financial shortfall of £2,000 as your comprehensive motor insurer has awared you £8,000 and your finance company have requested £10,000.

 

However, this is where a Shortfall Finance and Contract Hire Gap Insurance policy could help you. In the example above your Shortfall Finance and Contract Hire Gap Insurance policy would cover the £2,000 in question. Another point to be made is that no level of deposit can be protected with a Finance and Contract Hire Gap Insurance policy and if you wish to protect your finance and a deposit, then another level of cover may be more ideal for you.

How much is your Volkswagen likely to depreciate by?Shortfall Volkswagen Depreciation Rates

 

It is a rather unfortunate fact that all vehicles will depreciate over time, industry expers actually claim that the average vehicle will depreciate by around 50% within the first three years of ownership. It is very likely that your Volkswagen, will depreciate by upto half, by the time it's third birthday comes around. 

 

To help with your understanding of Volkswagen depreciation and how it affects your particular vehicle, we have taken recent figures from whatcar.com, on four different Volkswagen models, to give an idea of how much your own Volkswagen is likely to depreciate, over one, two, three and four years. 

 

Example 1: 

 

Volkswagen Passat Estate 1.4 TSI 122 S Bluemotion Tech 5dr 

 

Purchased for: £21,340

 

Year 1: £12,305

 

Year 2: £10,122

 

Year 3: £8,320

 

Year 4: £7,078

 

In this example, this particular Volkswagen model has depreciated by £13,020 within the first three years and £14,262 within the first four years. 

 

Example 2: 

 

Volkswagen Up Hatchback 1.0 60 B'motion Tech move up! 3dr

 

Purchased for: £9,695

 

Year 1: £7,327

 

Year 2: £6,009

 

Year 3: £4,918

 

Year 4: £4,209

 

In this example, this particulr Volkswagen model has depreciated by £4,777 within the first three years and by £5,486 within the first four years. 

 

Example 3: 

 

Volkswagen Golf Cabriolet 1.4 TSI 122 S 2dr 

 

Purchased for: £22,020

 

Year 1: £15,735

 

Year 2: £12,842

 

Year 3: £10,482

 

Year 4: £8,883

 

In this example, this particular Volkswagen has depreciated by £11,538 within the first three years and £13,137 within the first four years. 

 

Example 4: 

 

Volkswagen Beetle Cabriolet 1.2 TSI 105 2dr

 

Purchased for: £18,405

 

Year 1: £13,866

 

Year 2: £11,509

 

Year 3: £9,583

 

Year 4: £8,290

 

In this example, this particular Volkswagen model has depreciated by £8,822 within the first three years and by £10,115 within the first four years. 

 

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

Recent Volkswagen News at ShortfallShortfall Volkswagen News

 

Volkswagen confirm the release of the brand new Passat model.


Volkswagen launch the brand new Touareg TDI variant onto our roads for 2015. 

 

The Volkswagen brand officially confirm new details on their new Passat GTE model ahead of Paris.
 

Volkswagen reveal the brand new Golf Alltrack model ahead of a reveal at the Paris motor show this week.

 

Volkswagen had an impressive showing at day one of the Paris motor show and we have all of the information you need from their first day at the event right here.

 

Volkswagen introduce the brand new Scirocco model in hopes of gaining bigger sales figures here in Europe.

 

Volkswagen Golf R Estate has been officially revealed in the UK.

 

New Passat 2.0 TDI now available in the UK.

 

The Volkswagen Sport Coupe GTE is revealed from the Geneva Motor Show.

 

Volkwagen reveal the updated Tiguan model with higher powered engines and new gadgets.