Buying a car outright can be an expensive way to do things, so there is no surprise that many people are looking to purchase or lease their vehicles through finance or contract hire. This way allows people to be able to experience their ideal car, without the huge price tag all at once. Hiring your Alfa Romeo monthly, for a fraction of the cost, or paying the car off at monthly intervals, allows you to spread your finances and could be a very convenient way of doing things.
If you are in possession of an Alfa Romeo, or any vehicle for that matter, it is natural to want to protect it. If you were unfortunately involved in an accident in which your Alfa Romeo happened to be declared a total loss, along with the trauma of an accident and the fact that you now have no car, there is even more to consider. If you acquired your Alfa Romeo from a Contract hire company, no matter what the circumstances are, the company will still expect the outstanding contract hire payments to be covered.
So what would Contract Hire Gap Insurance for your Alfa Romeo do?
Not many people realise that your motor insurance will actually only pay your contract hire company, with the amount that your car is worth on the day it was declared a write off. Due to depreciation, this is likely to be a lot less than it was originally worth, leaving you thousands of pounds out of pocket and owing to the contract hire company. Contract hire gap insurance will pay the difference between the valuation that has been taken care of by your motor insurance and the remaining amount that it outstanding to your contract hire company.
Lets look at an example of Contract Hire Gap Insurance for your Alfa Romeo?
If you acquired an Alfa Romeo Giulietta for £19,010, according to whatcar.com’s depreciation calculator, on average within three years, your car could have dropped in value to £8,075, this is the amount that would be given to the contract hire company in the event of your car being written off, by your motor insurer. Now, you are looking at a very significant outstanding balance to find on your own, regardless of the amount of payments that have already been made. Contract Hire Gap Insurance would top up the motor insurance valuation, to the amount that was still owed to your contract hire company. This would leave you able to focus on the more important things like, getting better after an accident, or looking around for a new vehicle. Do not leave yourself exposed, it really could be the difference between thousands of pounds. Protect yourself with Contract Hire Gap Insurance.