If you are a business owner and tend to acquire your vans on contract hire then this is the correct Gap Insurance for you. You may just have a van on contract hire for personal use, if you can never own the van then this is the right Gap insurance for your vehicle.
Why Contract Hire Gap Insurance?
Buying a van can of course by very expensive, so it really is no surprise that many people are turning to contract hire as a popular way of funding. The low commitment and low initial deposit and advanced payment makes it an ideal option. If you are renting the van for a certain period, which is normally the best years of your vans life and then handing it back before it comes out of warranty, or the expensive maintenance and repairs become essential.
You may think that because you never own the van you shouldn’t be worried if something unfortunate did happen and the van was stolen or written off. You may like many other people not be aware that if this does happen and your van is written off or stolen that your own motor insurance company will settle of course, however it is usually thousands of pounds less than you would probably expect, due to the fact they will only award the amount that your car is valuated on the day. Which due to depreciation rates, will more than likely be a lot less than what it was originally worth.
Just because your van is written off or stolen unfortunately doesn’t mean that it is the end of your contract agreement either. Your contract hire company still need to be paid for the remainder of money that you owe. So as you have already read, if you have been rewarded the amount your car was worth on the day and you are not covered with Gap insurance, you will unfortunately have to find this remaining amount yourself, from savings, loans etc.
We hope this is where Gap insurance can take some financial strain off your shoulders if something like this was to happen. Contract Hire Gap insurance will ensure that the remaining amount is paid to the contract hire/finance company, leaving you to worry about the more important things like, getting your confidence back on the roads or looking for a new car.
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