Mind the shortfall

Did you know that every one and a half minutes, a car gets stolen? (Source – Car Theft Index 2003.) And then there are all those that get written off after being in an accident.

If either happened to you, the chances are your insurance company would offer you a total loss payment based on the market value of your car at the time. Their offer could fall well short of either the cash price of the vehicle or the outstanding balance of your finance agreement – which could put you in a sticky financial situation.

GAP insurance is designed to ensure that situation isn't so sticky. If your car is stolen or written off, GAP protects your investment by covering the difference between the amount the insurers pay you and either the outstanding balance of your finance agreement or the cash purchase price paid – i.e. the dreaded "gap".

There are two types of GAP insurance which cover you if your car is written off, through accidental damage, fire or theft:

GAP Insurance (Shortfall Protection)
This covers the difference between the amount paid by your insurance company and the balance of the outstanding finance agreement, up to a maximum of £10,000.

GAP Insurance Plus (Return to Invoice)
This covers the difference between the amount paid by your insurance company and the cash purchase price paid for your vehicle, up to a maximum of £15,000. This payment will help you replace your car with a new one of the same or similar spec.

Both these payments are in addition to your insurance claim and are available whether your car is new or used.

For more details, or to take out a GAP insurance policy, please talk to your local retailer.

GAP Insurance provided by Škoda Finance. Underwritten and administered by Pinnacle Insurance plc. Škoda Finance is a trading name of Volkswagen Financial Services (UK) Limited, Brunswick Court, Yeomans Drive, Blakelands, Milton Keynes, MK14 5LR. Registered in England number 2835230. Volkswagen Financial Services (UK) Limited and Pinnacle Insurance plc are authorised and regulated by the Financial Services Authority.