A Franchised Dealer is a new car dealership for a specific make of vehicle. Franchised dealers sell new and used vehicles.
A non Franchised Dealer is a used vehicle retailer that does not sell new vehicles.
A Leasing company can also be a broker who arranges leasing via a Leasing company.
A private seller is not a motor dealer but an individual selling his/her own motor vehicle or where a vehicle is purchased at an auction.
Important!
These insurances cannot be renewed or extended upon their expiry and because they are only available to buy within 90 days after vehicle purchase - they will not be available to purchase upon your policy expiry.
It is important to choose a sufficient "period" of cover. These insurances do provide a monetary benefit upon cancellation if you change your vehicle earlier than anticipated, provided no claims have been made. Please read the policy terms and conditions prior to purchase.
The premiums quoted online are one-off premiums for the full period of cover chosen.
This is the recorded mileage your vehicle has travelled at the point of purchasing these insurances. Sometimes referred to as "speedometer or speedo reading", "odometer reading" or "miles on the clock".
At the time of purchasing cover, the vehicle mileage must have travelled;
- Less than 10,000 miles for both the Contract Hire Gap and Vehicle Replacement Gap Insurance,
- Less than 100,000 miles for Return To Invoice Gap Insurance and
- Less than 70,000 miles for Scratch & Dent and Alloy Wheel Insurance
We do not need to know your estimated annual mileage.
Cash Purchase
This means the vehicle was not financed in any way and was wholly paid for by cash.
Contract Hire or Finance Lease
A Contract Hire is an agreement under which you lease the vehicle for an agreed period and mileage and simply hand the vehicle back at the end with no pre-agreed option to purchase. These schemes can be identified by the monthly payments being subject to vat.
A Finance Lease does not have a hand back option. The vehicle must be sold to a third party. These schemes can be identified by the monthly payments being subject to vat.
PCP (Personal Contract Plan), HP (Hire Purchase)
A PCP (Personal Contract Purchase) is a finance agreement for all or part of the vehicle price at the end of which you have the option to, 1. Hand the vehicle back, 2. Purchase the vehicle, 3. Part exchange the vehicle. Payments under these schemes are not subject to vat.
A Hire Purchase is a finance agreement for all or part of the vehicle price that repays the lender in full and ownership passes to you. Payments under these schemes are not subject to vat.
Self arranged personal loan - (a loan not secured upon the vehicle)
This is a loan that is not secured against the vehicle, ie the vehicle details do not appear on the loan agreement. These are often bank or building society or other third party loans.
Important
It is important to answer this question accurately. Unfortunately, this is not something we can advise upon. We recommend you contact your finance provider to establish which type of finance they have arranged for you. Choosing the wrong finance type could lead to you purchasing the wrong type of Gap Insurance and this could invalidate your claim.
This is the price you have agreed to pay for your vehicle, including all factory fitted options, dealer fitted accessories and services listed on the vehicle invoice. It is the "on the road" price after discount but BEFORE any part exchange allowance is deducted.. This figure should not include finance interest or deposits deductions.
If you are leasing your vehicle under a scheme in which you must hand the vehicle back at the end and have no option to purchase, this figure should be the manufacturer's recommended retail price including factory fitted options and a dealer fitted accessories.
Your motor insurer will be paying the market value for your write off and therefore you need to choose a "level of cover" (sometimes referred to as a "claim limit") to cover the potential gap loss.
This is the maximum amount the insurer will pay out in the event of a claim.
This is either the date of your vehicle suppliers invoice or, if delivery was taken later, the date on the delivery/handover paperwork signed by you and your supplier, or the date you expect to take delivery.
Our Contract Hire & Leasing Gap Insurance policy will pay up to three of the original advance rentals to a maximum of £3,000.00 including VAT. This is paid when you enter into a new agreement for your replacement vehicle.
This additional benefit is provided at no extra cost!
