We all know that the process of buying a car outright can be an expensive one and so there is no real surprise that more and more people decide to purchase or lease their vehicles through finance or contract hire. This of course allows people to be able to experience the car of their dreams, without the price tag being demanded all at once. Hiring your Volkswagen monthly, for a fraction of the cost, of paying the car off at monthly intervals, allows a buyer or leaser to spread their finances and could essentially be a convenient way of doing things.
If you have a Volkswagen, on contract hire or finance, it is natural that you would want to protect your vehicle. If you happened to be involved in an accident, where your Volkswagen was unfortunately declared a total loss, there is even more to consider than just the trauma of the accident. If you acquired your Volkswagen through a contract hire or finance company, regardless of your circumstances, the company will still expect the outstanding hire payments to be covered.
So what would Contract Hire Gap Insurance for your Volkswagen do?
It is a shocking fact that not a lot of people are aware that if your car happens to be stolen or involved in an accident where it is declared a total loss, then your motor insurance will only pay the hire company, with the amount that your car was valuated on the day it was declared a write off. Due to depreciation, this amount is likely to be a lot less than the vehicle was originally worth. This could leave you thousands of pounds out of pocket and in debt to your hire company. Contract Hire Gap Insurance will pay the difference between the valuation that has been paid by your motor insurer and the remaining amount that is outstanding to your hire company. A top up.
Lets look at an example of Contract Hire Gap Insurance for your Volkswagen?
If you acquired a Volkswagen up through finance or contract hire, that was originally worth £9,560, according to whatcar.com’s depreciation calculator, within three years, the value of the vehicle could have dropped to £4,850. The latter amount is the amount that would be awarded to your hire company by your motor insurer, if your car was declared a write off after three years. Now, whatever the outstanding balance is that is owed to your hire company, is expected to be paid by you. Contract Hire Gap Insurance would top up the £4,850 that is awarded by your motor insurer, to equal the amount that is still owed to your hire company. This leaves you to focus on more important things, like regaining confidence and getting better after an accident, or looking around for a new vehicle. Let Contract Hire Gap Insurance take the strain off your shoulders, if you are left exposed, it really could be the difference between thousands of pounds.