Hi and welcome to this short video clip from
our frequently asked question series brought to you by the car2cover team. In this video
I’ll answer the question “What is Return To Invoice Gap Insurance? “.
Return To Invoice Gap Insurance is a protection suited to those who have purchased or are
purchasing a vehicle using cash or some form of finance plan. In this video clip – we discuss
Return To Invoice for those who are financing but we’ve also prepared a separate video clip
for those who are using cash. When a vehicle is written off – your fully
comprehensive motor insurer will only pay the Market Value of your vehicle at time of
write off – and that figure may be substantially less than you originally paid and could also
be less than your lender requires to end your finance agreement. If you choose to protect your investment with
Return To Invoice Gap Insurance – our Insurer will pay the difference between the Market
Value write off figure paid by your motor insurer and the price you originally paid
for your vehicle. Let me give you a simple example;
• Let’s assume I purchased a vehicle for £16,000 from my local motor dealer.
• Let’s also assume 3 years later my vehicle is stolen and my insurer agrees to pay the
Market Value which Glass’s Guide say is £7,000. • That leaves me with a problem. I financed
my car and the lender is asking me to pay £9,000 to end my agreement. So I need to
find £2,000 just to clear my debt. • In this example, my Return To Invoice
insurance will pay the difference between my original purchase price of £16,000 and
the motor insurer’s settlement of £7,000 – which is £9,000.
• From that £9,0000, my Gap Insurer will send a cheque for £2,000 to my lender to
clear my finance agreement, and will send the balance of £7,000 to me to use as a deposit
for my next car or to spend as I want. We all know that vehicles reduce in value
and we all plan for that when we choose to change our vehicle. However, very few of us
plan or financially prepare for a write off, and in these unforeseen and unexpected circumstances
– Return To Invoice Gap Insurance can step in to help provide the funds you need to end
your finance agreement and replace your vehicle. Return To Invoice Gap Insurance is an extremely
low cost cover that can provide up to £50,000 of protection when you need it most.
Return To Invoice Gap Insurance can only be purchased before or within 180 days of taking
delivery of your vehicle, if you have purchased from a private source or you purchased over
180 days ago, you may still be able to purchase an Agreed Value Gap Insurance and we have
prepared a series of short video clips to explain.
Because of professional theft is a major cause of Gap Insurance claims, the sooner you take
cover the better. In some cases, these policies can be created
with a 12 month deferred start date where your motor insurer provides ‘New for Old’
cover in the first year. We’ve created a separate video on policy deferment and if this is something
you are considering – we would encourage you to view this video to find out more, as there
are some important things you need to consider before deferring your policy.
Return To Invoice Gap Insurance is available for cars, vans, motorhomes and motorcycles
that have been supplied to you by a VAT Registered motor dealer and are under 8 years of age
and under 80,000 miles at the start of the policy, and there are no mileage restrictions
once the policy has started. And finally….
If you’re comparing cover between two or more brokers or perhaps your dealer, do bear in
mind the policies will almost certainly have different Terms & Conditions that affect what
the Insurer will and will not pay for in the event of a claim.
We know our product features are the very best in the market, and we would be happy
to provide a free comparison with any other product you might be considering – to help
you make a more informed decision. Contact us to find out more or view our ‘spot the
difference’ video on this product. All insurances have Terms and Conditions and
eligibility criteria, so always refer to the Terms & Conditions before buying anywhere.
Our Insurers Terms and Conditions are available from our web site at the address shown below.
I hope this helps and thanks for watching. If you need any further information – please
feel free to contact us using the details shown below.