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How Asset Protection Works
ChooseMyCar, would like to introduce you to our Asset Protection package. This includes both Return to Invoice (RTI) coverage and Finance Guaranteed Asset Protection (Finance GAP).
Here's what they mean for you:
Finance Guaranteed Asset Protection (Finance GAP)
In situations where your vehicle is declared a total loss, Finance GAP steps in. This covers the gap between the motor insurance company's settlement and what's left on your finance agreement.
Return to Invoice (RTI)
RTI ensures that if your vehicle encounters a setback, you're compensated for any difference between what your motor insurance company settles and the initial price you paid for the vehicle.
No matter how you financed your vehicle, our Asset Protection has you secured. It promises the greater payout between the Finance GAP or the RTI, capping at the vehicle's purchasing price.
How Finance Guaranteed Asset Protection (GAP) Works
Can you give me an example?
You owe £19,200 on your finance agreement. Your vehicle is written off. Your motor insurance company pays out £12,000. A Finance GAP pay-out of £7,200 makes up the difference.
- Purchase Price £18,500
- Outstanding Finance £19,200
- Insurance Pay-Out £12,000
- Finance Gap Pay-Out £7,200
Pros and Cons of Finance Guaranteed Asset Protection (Finance GAP):
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Financial Security
In the event your vehicle is written off or stolen, Finance GAP covers the difference between the insurance payout and the remaining balance on your finance agreement. This ensures you aren't left with a financial burden.
-
Peace of mind
Knowing that you won't be left in a financial lurch, even if the worst happens to your vehicle, can provide significant peace of mind, especially when making a substantial investment in a car.
-
Flexibility in Car Choices
With Finance GAP, you might feel more comfortable purchasing a more expensive or newer vehicle knowing you're protected against potential depreciation if the car is toaled.
-
Additional Cost
Like any other insurance or protection product, Finance GAP adds to the total cost of vehicle ownership. Over the course of a loan, this can amount to a significant sum.
-
Not Always Necessary
Depending on the specifics of your loan and down payment, the need for Finance GAP can vary. If you've made a large down payment, the gap between the vehicle's value and the loan balance might be minimal, making the protection less critical.
-
Potential Overlaps with Existing Coverage
Some comprehensive car insurance policies might offer similar provisions as Finance GAP. Without careful consideration, you could end up paying for overlapping coverage.
How Return to Invoice (RTI) works
Can you give me an example?
You owe £18,500 for your vehicle. Your vehicle is written off. Your motor insurance company pay-out is £12,000. An RTI pay-out is £6,500 tops it up the price you originally paid.
- Purchase Price £18,500
- Insurance Pay-Out £12,000
- RTI Pay-Out £6,500
Pros and Cons for Return to Invoice (RTI)
-
Financial Security
In the event your vehicle is written off or stolen, Finance GAP covers the difference between the insurance payout and the remaining balance on your finance agreement. This ensures you aren't left with a financial burden.
-
Peace of mind
Knowing that you won't be left in a financial lurch, even if the worst happens to your vehicle, can provide significant peace of mind, especially when making a substantial investment in a car.
-
Flexibility in Car Choices
With Finance GAP, you might feel more comfortable purchasing a more expensive or newer vehicle knowing you're protected against potential depreciation if the car is toaled.
-
Additional Cost
Like any other insurance or protection product, Finance GAP adds to the total cost of vehicle ownership. Over the course of a loan, this can amount to a significant sum.
-
Not Always Necessary
Depending on the specifics of your loan and down payment, the need for Finance GAP can vary. If you've made a large down payment, the gap between the vehicle's value and the loan balance might be minimal, making the protection less critical.
-
Potential Overlaps with Existing Coverage
Some comprehensive car insurance policies might offer similar provisions as Finance GAP. Without careful consideration, you could end up paying for overlapping coverage.