Audi are a rather expensive vehicle to buy and so it is no surprise that more and more people are looking to acquire their vehicles on finance or contract hire. This allows you to live your dream, whilst either hiring the car monthly for a fraction of the price, or paying the car off at monthly intervals which allow you to spread your finances, a convenient way of doing things.
It is a certainty that if you are in possession of a fantastic vehicle like an Audi, then it is natural human instinct to want to protect it. It is not uncommon that cars become like members of the family and with an outstanding vehicle like an Audi, it is more than likely that you would have formed an attachment to it. It is also a deeply saddening fact that due to the wonderful attributes of such a vehicle, they are indeed sought and this makes this particular manufacturer a prime target for thieves. If you woke up one morning to find that your fantastic contract hire vehicle had disappeared from your driveway, aswell as being distraught over the fact that your much loved vehicle had gone, there are unfortunately other factors to start considering.
So what would Contract Hire Gap Insurance for your Audi do?
Your contract hire company, regardless of the circumstances, whether this horrendous situation did happen to you, or whether you were involved in an accident in which your Audi was written off, will still expect the outstanding contract hire payments to be taken care of. Now, unbeknownst to some people, your motor insurance, although necessary to allow you to drive on your roads, will only pay your contract hire company the amount your Audi was valuated on the day it was declared a total loss. Due to depreciation this could be a significant amount less than how much the car was originally worth and could leave you with a huge amount of money to find, to pay your outstanding contract hire payments. Contract hire gap insurance will pay the difference between the amount your motor insurance valuates your vehicle and the amount on top of that this is still required by the contract hire company.
Lets look at an example of Contract Hire Gap Insurance for your Audi:
If you had acquired an Audi A4 Avant and it’s original value was £41,280, according to whatcar.com’s depreciation calculator, on average within two years, your car could be worth £21,800. This essentially is the amount that would be offered to your contract hire company in the event of your car being written off, so you are looking at a very significant outstanding balance to find on your own. Although, you would have already paid many monthly payments, there is still likely to be a very significant amount outstanding to your contract hire company and this is where contract hire gap insurance would come in. Contract Hire Gap Insurance would then top up the motor insurance valuation (£21,800) and the amount that was still owed to your contract hire company. Leaving you in a position to be able to focus on more important things, like acquiring a new vehicle, or gaining your confidence back on the roads after an accident. Do not leave yourself exposed, you could find yourself without a car and thousands of pounds out of pocket, protect yourself with Contract Hire Gap Insurance.