What is RTI Car Gap Insurance?

Motor car gap insurance and car loans have formed the backbone of our business for more than twenty three years now. We are in the business of saving our customers money and we do that by selling RTI car gap insurance direct to the public. In this way we offer UK based new car buyers the chance to pay greatly discounted online rates rather than those prices offered by car dealers when they sell the public a car.

Now that everyone including pensioners are happily buying vehicle insurance on the internet, online shoppers are finding it easier to get a better deal by shopping around! In just a few small clicks you are consumers are able to find the very best prices for products such as comprehensive car insurance, and of course car gap insurance which is a must have with new cars depreciating at the rapid rates they do! Gap insurance is also refered to as return to invoice gap insurance (RTI), back to invoice insurance, finance gap insurance, vehicle replacement insurance (VRI), total loss gap cover, shortfall insurance protection or simply car gap insurance.

Car gap insurance offers customers the coverage and protection in the event that your new or used car is totaled or written off. This insurance will pay for the gap between the amount you paid for the car, the amount due in settlement to the finance company or the amount due on the car under the lease or contract hire agreement and then the actual cash value of the car at the time prior to the accident (your comprehensive motor insurance insurers depreciated value). This way you the customer are protected in the case when the insurance payout is less than the actual amount that you still owe on the vehicle or the amount you paid for the car.

So now you have just had an accident with your six month old motor car and it is declared a complete write off a total loss by your comprehensive motor insurer. With comprehensive motor insurance you are protected and a vehicle will be replaced at no cost to you – right? Probably not, unless you have taken out car gap insurance, return to invoice insurance, finance gap or vehicle replacement gap, which covers you for the gap between the actual value of the car prior to the accident and the amount that you still owe on the vehicle, or the amount you originally paid, or even replace your car with a brand new one. Otherwise you could end up being short by thousands of pounds.

Car gap insurance is a policy that will ensure the depreciation of your car in the event of total loss due to an accident or even theft. This policy will not be included within your motor insurance policy but it will help to protect you against a serious financial loss.

As soon as you drive your brand new car out of the dealers showroom or the car lot, the value of your car immediately drops. If for example you bought a vehicle for twenty five thousand pounds and you unfortunately have an accident a month later it will have already depreciated. If you have a loan or leasing agreement you have possibly only made one monthly payment on that car and perhaps not even paid a deposit on the car, so you probably owe close to the twenty five thousand on the car. Unfortunately even with full insurance, even comprehensive, you will only receive the market value of your vehicle at the time of accident, which will almost certainly be less than the initial price you paid for your vehicle.

Your motor insurance policy will usually settle the amount or the value of the vehicle prior to the accident which is a depreciated value and not the amount that you originally paid for the vehicle the day you bought it or the amount due on the finance.

Most financial companies require owners to have full motor insurance on new cars, gap insurance is usually not included within these types of policies. If you car is accidentally totaled or written-off, perhaps even stolen, especially within the first two years of your car purchase, due to depreciation of new cars you could find yourself in for a very nasty surprise financially.

Why is car gap insurance so important to add to your current comprehensive motor insurance policy. Your standard motor insurance policy will only cover your vehicles pre accident depreciated value which can end up being a whole lot less than what you initially paid for the vehicle. The moment you start driving you vehicle the value of the vehicle is depreciating. So if you paid cash or used finance for your new vehicle, you may find yourself seriously in money predicament in the event of the loss of your vehicle.

Your car gap insurance policy should be purchased according to the quality of the cover and then the price. By using our online guide at Car Gap Insurance, we are able to help save you money by shopping online. A year ago you would drive to the supermarket to do your monthly shopping, now days you are able to do your shopping online, why can that not be the same for gap insurance and find it cheaper.

If you are involved in a car accident that leaves you with the situation of your car being totaled or declared an insurance write off, which we hope will never happen to you, you might find out that you are paying off a loan for a car you do not even drive. In this case, this is where you car gap insurance becomes extremely important.

Vehicles drop in value enormously in the first year and should the vehicle be written off or stolen you could well find that the amount outstanding to the finance company is more than the your comprehensive insurer is offering to pay. Finance gap insurance policy will cover the difference between what you owe on your vehicle and what the insurance company says that the vehicle is worth at the time prior to the loss of the vehicle. You find that if you are leasing a car, the leasing company will probably require you to take out gap insurance as well.

The return to invoice insurance (RTI) is great cover for new and used cars and cash, finance, contract hire or leasing customers (whether you paid cash or borrowed the money from a Bank or Motor Loan or even have chosen Contract Hire).

This level of cover pays the difference between the total loss pre-accident, or theft, depreciated value offered by your Motor Insurance and the original amount you paid for your car - which means you are guaranteed to get back the original purchase price in full.

The vehicle replacement insurance (VRI) is great cover for new cars bought using cash, finance, contract hire or leasing customers (whether you paid cash or borrowed the money from a Bank or Motor Loan or even have chosen Contract Hire).

If your car declared a total loss by your comprehensive motor insurer, vehicle replacement gap insurance (VRI) provides you with a new equivalent car regardless of price increases. It takes away the risk of the vehicle being worth less than the settlement figure.

Gap insurance coverage becomes very important to your vehicle especially if it is stolen. Obviously thieves prefer to steal new cars, so they end up looking for the most popular cars and brand names. For all your car gap insurance needs contact Car Gap Insurance and put us to the test, we guarantee you will not be disappointed.