How can a Shortfall Gap Insurance policy help you and your Volvo?

Gap Insurance is a form of financial protection that protects you from the effects of depreciation. Rates of depreciation are the rates at which your Volvo model will decrease in value throughout ownership.

Market analysts suggest that some vehicles can lose up to 50% of their original value within the first three years. This means that if you were to write your Volvo model off three years after purchase. Your own insurance company is only ever legally obliged to offer you the value of your Volvo on the day of loss (The day your Volvo was written off). This could be thousands of pounds less than you originally paid. 

There are different forms of Gap Insurance which can protect you from the effects of depreciation, all of which do so in different ways. The first form of Gap Insurance is Finance and Contract Hire Gap Insurance. Put simply this protects the difference between the settlement from you motor insurance company for your Volvo model on the day it was written off or stolen and the outstanding finance remaining on the vehicle.

The second form of Gap Insurance may seem familiar as it is more than likely, very similar to the level that your Volvo Dealership offered you. Return to Invoice Gap Insurance will cover the financial shortfall between your comprehensive motor insurance settlement and the higher of either the amount outstanding on your finance agreement (which is tied to your car) or the original invoice price you paid for the vehicle, meaning that between both your comprehensive insurer and your Shortfall Return to Invoice policy, you will be returned to the full invoice price you paid for the vehicle. From this, you can clear any finance if necessary and the balance of funds is yours to spend as you see fit. 

The final form of Gap Insurance for you to consider is Vehicle Replacement Gap Insurance. Vehicle Replacement Gap Insurance will cover the shortfall between the value of your motor insurance companies offer and the higher of either the amount outstanding on finance, the original invoice price you paid, or the replacement cost of another vehicle with the same make, model and specification as yours was on the day of purchase.

Volvo is a Swedish manufacturer of trucks, buses, construction equipment, and also financial services.

The company was officially founded in 1927. However, it has roots which date back to 1915.

In 1915, the company was known as AB SKF, which solely focused on producing ball bearings. This explains the meaning of Volvo, as the name is Latin for 'I roll'. In 1924, the company's two founders began to invest in car production. They aimed to design cars to cater for Sweden's rough roads and cold temperatures, which the American and European imports did not cater for. Its first car was known as Jakob, but more formally as the Volvo OV 4 series.

The company also successfully entered the truck, bus and aircraft engine markets during the 1930s. In 1993, the company unsuccessfully attempted to merge with French car maker giant Renault. In 1999, Volvo was sold to America's auto giant Ford and in 2010 Ford sold the brand to Zhejiang Geely. This leading Chinese automobile manufacturer owns the famous traditional London black cabs.

The Volvo company is well known throughout the industry for its safety engineering. In part as the company was the first to introduce laminated windshields, the 3-point seat belt, and fitted headrests.

The Volvo symbol originates from the ancient iron chemistry sign, demonstrating the company's use of top-quality iron. In 1990, to the amusement of many, the company was involved in a lawsuit against a Hong Kong nightclub called 'Club Volvo'. The case ended with a settlement payment of $1.