Most van gap insurance policies are offered by the dealership or Internet broker that you buy the van from. They are usually for three years and you are usually just a standard combined return to invoice style of van gap insurance cover.
Ok well no great surprise there!
So what happens when your van gap insurance expires?
Most vans are used for commercial purposes and hopefully cover lots of miles making their owners lots of money. So traditionally because of this increased mileage vans tend to deprecate quicker than a standard vehicle.
Did you know that the average length of ownership for a new vehicle is now 63 months. That is a staggering five years. Vans and commercial vehicles are expensive so why shouldn’t you want to make the most use of it. Is your standard van gap insurance policy going to protect you for as long as you want it to?
What happens in the fourth and fifth year when you standard gap insurance has expired? Well you would hope that any insurance settlement would cover any outstanding finance settlement. Well possibly buy possibly not and what happens if you where fortunate enough to have paid cash for your van?
Let me show you what I mean
Lets say that you have just bought a modest Citroen Berlingo and paid £13,520inclusive of vat and protected yourself with a standard 3 year van gap insurance policy.
- By the end of year one the vans estimated value is £8,000
- By the end of year two the vans valuation is estimated at £6,575
- By the end of year three the vans valuation is estimated to be £5,400 – Van Gap Insurance expires
- By the end of year four the vans valuation is estimated to be £4,625
Don’t forget that your van gap insurance expired at the end of year three this means that years four and five when potentially there is the biggest amount for you find find to replace your van.
Admittedly it has been possible to find a form of finance gap insurance which would cover the outstanding finance but that still leaves you in the position of having no van!
At last you can now protect yourself with up to five years with van gap insurance in return to invoice gap insurance and replacement gap insurance styles of cover
We searched the Internet and found a gap insurance provider who could supply five years return to invoice and vehicle replacement gap insurance for less than the cost of a standard 3 year van Gap insurance policy from a commercial dealership. In fact their most comprehensive cover does not cover just the invoice price but the replacement cost even if that has gone up and it was still considerably less than the magic £395.
They where an independent broker with all the right credentials ( I know we checked). They where also underwritten by a major player in the gap insurance world who currently underwrites policies for the AA warranty, Halfords Auto centres and Kwik fit to name a few.