Gap Insurance, Tyre Insurance and SMART cover in the UKNavigation
Of course when you buy a Gap Insurance policy you do so hoping that you never need to claim on it, such is the nature of insurance. However, having the foresight to protect yourself with such cover does mean that you can protect your finances should the worst happen. However,...Read More
If you have recently bought a new vehicle from a franchised main motor dealer there is every chance that you will have been offered a tyre insurance product. This type of insurance cover is part of a group of protection products that are either offered individually or bundled...Read More
If you have a motor insurance policy in the UK today, there us every chance you have either a compulsory or a voluntary excess on the policy. This excess is an amount deducted from a total loss settlement, or an amount charged by the insurer in the event they undertake a...Read More
What is Vehicle Replacement Insurance, or VRI Gap Insuranceas it is sometimes known? This style of insurance is similar to Return to Invoice in that it will cover the depreciation of your old vehicle. However, it does differ from RTI Shortfall in one particular way, as it takes...Read More
Gap Insurance, or Guaranteed Asset Protection to give it its full title, is an additional insurance policy you can use for financial protection. If you have a vehicle ‘written off’ in an accident, after a theft or lost in a fire, your motor insurance may only protect the ‘market value’ of the vehicle at that time This value may well be significantly less than the original price paid for the vehicle, and can leave a few problem as a result.
-You may have outstanding finance
-You have to replace the vehicle
The settlement from your motor insurer may not be enough to solve one, either or both of these potential issues.
Nearly every vehicle will lose value over time, and by taking a Gap Insurance policy you can look to protect different financial aspect in the event of a vehicle loss.
There are three basis types of Gap Insurance
Finance and Contract Hire Gap Insurance – this is designed, in the event of a total loss, to protect the difference between the vehicle market value and the outstanding finance or lease settlement.
Return to Invoice Gap Insurance – this will protect between the vehicle market value of the vehicle and the original invoice price you paid.
Vehicle Replacement Insurance – will cover between the vehicle market value and the cost of replacing the vehicle with the model equivalent to the one you drove away from your motor dealers in. This is probably the most comprehensive level of cover available.
Gap Insurance is normally offered by a supplying motor dealer or finance company. However it is not a legal requirement to take, but you can normally find cover from an independent insurance broker far cheaper than from your motor dealer.
The tyres on your vehicle are possibly the single most important safety feature, as they form the only permanent contact between you and the road. Advances in technology mean that tyre performance is now better than ever before but as always safety does come at a cost. High perfomance. low profile tyres are often an obligatory feature of the modern car. Aesthetically pleasing on the eye, they also add to the overall styling and good looks of the vehicle also.
However, have you looked at the cost of replacing just one of your high tech tyres?
Quite often this can run into hundreds of pounds per tyre, and it may be wise to keep your vehicle ‘balanced’ so this can mean changing the corresponding tyre on the same axle also. Naturally if you lose a tyre due to damage, a ‘blow out’ or a puncture then you never plan for this to happen.
A common feature on low profile tyres is that they are designed to be driven on in the event of a puncture. This is called ‘run flat’, which can be very convenient if you do not fancy stopping to change a wheel by the side of the road. However the major disadvantage of run flat tyres is that you cannot repair them. This means you have no choice but to buy a new replacement for the tyre you have lost.
This is where tyre insurance can be very handy indeed.
A tyre protection policy can cover the cost of replacing a number of tyres (normally 4 or 5) over a period of up to three years. Often even the policies offered by motor dealers are cheaper than the cost of just one tyre, and can therefore make sense to consider such protection.
As with any type of insurance you can find alternatives to the dealer cover elsewhere, and independent companies offer more competitive premiums online in the UK today.
Have you ever been annoyed to find a dent or scratch on your lovely car? It may be too small to get your motor insurance involved, and not something you would necessarily take to a body shop for repair. However, you know it is there and it can be extremely annoying especially if it is not your fault in the first place.
The solution could be a SMART Insurance policy.
This cover will protect you from the cost of this style of repair to your vehicle. This cover, which stands for Small or Medium Area Repair Technique, will only be effective if the damage is confined within a certain area, and does not require to be taken to a full body repair unit.
This type of repair is normally done by a mobile paint and body repair specialist, with national franchise companies such as Chips Away, or by a local repair technician. This style of Paintless Dent Removal is traditionally much cheaper than a full body shop repair, but still can cost between £50 and £150 depending on the damage incurred.
By taking a SMART Insurance policy you can protect the shortfall in cost of these simple repairs by claiming on your cover instead. In the days of busy car parks and even busier roads it can make this type of damage even more common.
Typically SMART Insurance is offered by a motor dealer as an ‘add on’ product in conjunction with items such as Gap Insurance and Tyre Insurance. On many occasions these products are combined together as a protection package. However, as with Guaranteed Asset Protection and Tyre Protection, you can buy SMART Insurance independently, and often far more cost effectively.
SMART Insurance is usually only available on new vehicle purchases in the UK, or within a very small time frame from the purchase of the vehicle from the motor dealer.