Purchase Price Protection
What is Purchase Price Protection?
This policy is designed for people who have purchased their vehicle in one of the following ways:
- Outright Purchase; Or
- Finance (this could be a bank loan, hire purchase or personal contract purchase).
Vehicles depreciate in value at an alarming rate. If your motor insurer decides your vehicle is a write off following an accident, fire or theft they will only pay what they consider to be the market value for the vehicle. This will certainly be less than what was paid for the vehicle originally.
This can cause a considerable amount of stress for you when you are without a vehicle and you have to find additional funds to replace your previous vehicle with a new one.
Purchase Price Protection will assist you as it will pay to you the difference between your motor insurers total loss settlement and the original invoice price you paid for your vehicle, therefore covering the depreciation in your vehicle.
The settlement is made direct to you after clearing any outstanding finance.
Eligibility:
You will be eligible for Purchase Price Protection provided:
- The purchase price of your vehicle does not exceed £100,000.
- The vehicle is under 8 years of age and is registered in the United Kingdom in your name. Second hand cars are accepted.
- Your vehicle is covered by a UK comprehensive motor insurance policy issued and maintained in your name.
- Your vehicle is not an emergency vehicle, taxi, bus, truck, heavy goods vehicle, motorcycle, invalid carrier.
- Your vehicle does not exceed 3.5TGVW.
- Your vehicle is not on Contract Hire or Leased.
- Your vehicle has been purchased from an authorised UK distributor
For further details on the terms and conditions that apply to Purchase Price Protection GAP Insurance please read the Policy Summary, a copy of the policy wording is available on request please call us on : Telephone 0845 270 7607.
