So you have done the hard work, you have decided what type of cover you want even how long so what is a claim limit?
The claim limit is the maximum amount that you will ever be paid from the gap insurance. So matter what style of cover for how long it is the maximum. So picking a claim limit is just as important as picking the type of cover. Too little and you may leave yourself exposed too much and you may be paying too much.
So when it comes to claim limit choose wisely.
Let me show you what I mean and how a claim limit can affect you. Lets say you where lucky enough to have bought a £50,000 ca. mm I wish too. You also decided to protect yourself with return to invoice gap insurance for 4 years and you chose a £10,000 claim limit. Three years later your car is stolen and written off. Your cars valuation is £28,000.
You would get a cheque from your own insurance company for £28,000 then a second cheque from your gap insurance company for only £10,000.
You would still be better off than having no gap insurance but you would still not be able to go and buy another £50,000 car without using your own savings.
A more realistic claim limit would have been say £25000.
Equally if you had chosen a £50,000 claim limit your premium would have been higher but in effect what you are saying is that you think your car will be worth nothing at the end of the 4 years and could never benefit from such a high limit.
A common mistake is that customers either pick a claim limit too high or too small.
Remember the claim limit is the maximum amount you will receive over and above the valuation of your car on the day it is written off.
The motoring press an experts say that the average vehicle can loose up to 50 % within the 1st three years. Your dealership will not stress the fact because lets face it they don’t want you thinking about just how much you will be loosing.
A really good guide and we stress guide in helping you pick a claim limit is to log onto “What car” . We warn you now it is not a nice thing to look at but just like insurance we want you to go into anything with your eyes wide open and know the pit falls.
You may need a coffee or a strong brandy and it is only a guide but it is well worth a look.
So when it comes to gap insurance claim limit’s only only recommendation is that you choose a realistic limit.