If you are looking for gap insurance on line you will have seen websites asking you confirm that you have bought your vehicle within 180 days.
So what is the magic 180 days and what difference does it make?
Insurance companies have to have guide lines, rules and cut off dates. Everything quiet rightly so has to be black and white. The 180 days is classed as the maximum amount of time you have to set up your gap insurance and benifit from the most comphrensive levels of cover.Your dealership may have told you that you have to buy gap insurance before you drove away, some say that you have up to 30 days after.
When buying online most gap insurance suppliers offer between 90 and 180 days from the date of purchase.
If you are within this magic 180 days you can choose from different levels of cover and tailor make a policy to suit you with different claims limits. Do you want to protect the invoice price or the replacement cost, just the outstanding finance? The point is that the choice is yours.
If you are outside the magic 180 days your choices will be far more limited.
You may still be able to find a level of gap insurance but it will not protect the invoice price or the replacement cost. Instead it will protect the value of your vehicle of on the day that you have bought the gap insurance policy .
Ok please let me show you what I mean.
I have just spoken to a customer who bought a New Volkswagen Polo 1.4 sel on the 10th of March 2011 and paid £15500.
Unfortunately they are now out of the magic 180 days from date of purchase. This means that instead of being able to offer them the facility to protect the £15,500 or the replacement cost they can instead only protect the glass’s or Parker’s guide valuation for their polo.
They had bought the car new but even just allowing for the vat the difference would be a massive £3100 meaning that they will now only be able to protect in the region of £12,000. If they ever need to make a claim they will now be a minimum of £3000 short of buying another new Polo.
As they said they meant to do it as soon as they bought the car they with one thing and another they just forgot. It is easily done we are all human and all have busy lives.