Choices in Ford Gap Insurance

If you are looking at buying a Ford and are thinking about Gap Insurance,what choices do you have in the levels of cover available? If your motor dealer speaks to you about Gap Insurance for your Ford, then they may only offer you one or two choices in terms of cover. In reality, if you are looking to protect your Ford, there could be a large range of cover available to you.

Ford Gap Insurance

What aree your choice for Ford Gap Insurance?

Gap Insurance for Ford

The types of Ford Gap Insurance cover available to you depend on several factors, the most important of which is how you have bought the vehicle.

If you secure your Ford by way of a Contract Hire  or lease, then this form of finance is notable in the fact that you can never own the vehicle at any point. This means that protecting the invoice price or the replacement cost are not really relevant, as it is not your vehicle top replace. However, if the Ford is written off, your leasing company will seek the ‘market value’ of the vehicle at the time, this can be covered by your motor insurance policy. The other aspect that your leasing company will look for is a proportion of the outstanding rentals on the agreement.

This requirement can be covered by a Contract Hire Gap Insurance policy for your Ford.

If you have a finance agreement on the Ford, and you simply wish to protect any potential shortfall between the vehicle value and the outstanding finance agreement, then a Finance Gap Insurance product could be worth a look. If you have only put a small deposit into the finance then you could be in a situation where the settlement from the finance company is higher than the value of the Ford when it is ‘written off’. A Finance Gap Insurance policy for your Ford can protect this amount.

If you have paid cash, or have a finance agreement with a deposit you have paid, then the option of Return to Invoice Gap Insurance may be worth considering for your Ford. By protecting with an RTI Gap Insurance, you can cover between the vehicle market value and the original invoice price you paid. Even if you have a finance agreement, this can be settled and whatever remains is your ‘equity’ to use as a deposit on the next vehicle.

One final option is to protect the cost of replacing the vehicle. If you buy say a brand new Ford for £18,000 today, and the equivalent brand new model in 2014 is £21,000, then even a return to invoice policy will leave you £3,000 short of replacing the vehicle. By looking at a Vehicle Replacement Insurance for your Ford, you can protect between the vehicle market value and the cost of the equivalent model. Thus you take care of not just the depreciation on your Ford, but the increased cost in having to replace it.

Which Ford Gap Insurance?

As you can see, there are a few different choices for you to look at. In the end, it really is a judgement call on your behalf. Take a good look around and you will come up with the best solution for your Ford Gap Insurance needs.

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1 Response

  1. October 28, 2012

    [...] to buy the vehicle outright, through a bank loan or through a form of dealer finance then the choice of Gap cover is slightly more complex. Finance Gap can be used to protect simply a financial shortfall between [...]

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