Are Claim Limits Important?
A Claim limit is a maximum amount you will ever be able to claim from your gap insurance policy. No matter how long it is for, how much you paid, or how much the replacement vehicle is.
As you can see, the claim limit is therefore very important. There is no exact science to picking a vehicle replacement claim limit. To simplify our policies if your vehicle costs less than £50,000, there is no claim limit. Instead, it is unlimited.
If your vehicle is over £50,000, the claim limit is set at a maximum of £50,000.
No one can ever categorically state how much a vehicle will be worth at the end of a set period of time with a set mileage on it.
After all, there are too many factors to take into consideration. Public opinion, model upgrades, labour costs and taxation rates can all affect your vehicle's cost.
Notwithstanding, motor experts predict that the average vehicle with average usage can lose up to 50% within three years and, for some models, even more.
For example, for illustration purposes only - you buy a vehicle for £98,750, and your vehicle is written off three years later.
The market value is now £49375. To replace your vehicle now costs £107,825. In this example, your settlement would be capped at £50,000, while being a significate amount of money this would still leave a shortfall of £8450.
We say this not to be derogatory about our policies; far from it, we think they are amazing. But we want ALL customers to understand our policies' advantages and disadvantages before buying any Gap insurance Policy.