So you did not have a spare suitcase full of cash under the bed to buy your Taxi?
No sorry to say most people don’t. So like most of us you know that so that you can buy your car to make your money and earn you cash you will need a form of finance. Hey that is what it is there for.
OK so you have bought a taxi or private hire car and taken finance. No problem. But what happens if something goes wrong. What happens if your taxi is involved in an accident or stolen and written off.
Did you know that an estimated 600,000 vehicles are written off in the Uk each year!
Let me show you how Taxi Gap insurance is one of the insurance world best kept secrets.
Lets say that you have just bought a car for £16,000. You had a £500 deposit and financed the balance over 5 years to keep the payments manageable.
2 years later your car is stolen hey it happens, day in and day out. Your insurance company will only pay you the value of your Taxi on the day it was written off. Bear in mind that Mr & Mrs Averages car can loose up to 50 % in the first three years this means that your Taxi with just under 100,000 miles is going to be worth at lot less.
So your insurance company pay you market value which is £5500. You finance company still want to be paid and send you a settlement letter of £10150.
You now have no car to use to make you money, and owe the finance compnay £4650. Not a good position to be in.
Finance gap insurance would in this case pay the difference between your Taxis valuation and the amount outstanding on finance. This means that you would have no liability to your old car. You would now be free to buy another car with having to re-finance or dig deep into any savings you may have to clear the finance.
As always the choice is yours. But if the thought of finding a couple of thousand pounds is no problems then taxi gap insurance is problem not for you.
However with on line broker prices from as little as £200 for a full five years cover can you really afford not to get a Taxi gap quotation?