When you are looking for gap insurance the claim limit is one of the very first things you should think about!.
Yours sales executive wont want to spend too much time talking about claim limits after all they have just spent how long convincing you to buy the vehicle. The last thing that they will want to do is to start to talk about exactly how much you new pride and joy may loose in the next few years.
Most insurance companies can only offer a maximum gap insurance claim limit of £25,000 which in most cases may be sufficient.
Buy what about if you have been lucky enough to buy a more expensive vehicle will a £25,000 gap insurance claim limit really give you all the protection that you think it will.
Don’t forget a gap insurance claim limit is the maximum amount that you can claim under your gap insurance policy no matter what style of cover you have chosen.
I recently spoke to a customer who was lucky enough to have just bought a new Land Rover Discovery. He drove a hard bargain and negotiated a discounted price of £46850. He shrewdly took advantage of their low rate finance deals and at the end of four years has an option to purchase of just over £15,000.
In this case he potentially and absolute worse case scenario if his Land Rover was written off in 3 years 11 months time and the market valuation was around the hand back valuation he could of been left with a shortfall of anything up to nearly seven thousand pounds.
We searched the Internet and found a gap insurance supplier who could offer gap insurance claim limits of up to £50,000 for up to 4 years.
The prices naturally increase the higher the gap insurance claim limit but that said a 4 years quotation based on a maximum of £40,000 was still over £60 cheaper than the traditionally average £395 quoted by main dealerships.
So if you have been fortunate enough to be able to buy an more expensive vehicle why not get a quote with a more generous gap insurance claim limit after all the difference can make huge difference when you need to make a claim and the cost to you now almost negligible.