The claim limit of a gap insurance policy is the greatest amount that you will ever be able to claim from your policy. No matter how long the cover. No matter which policy you have bought. So choose wisely as an improper claim limit will leave you financially exposed. Remember that this is a monetary amount on top of your own vehicles valuation on the day of loss. The key word is "on top" as which vehicle you have chosen it will still have a value on the day of loss, this amount is in additional to any settlement from your own motor insurance.
So how do you pick a claim limit?
If the average vehicle can lose up to fifty percent within the first three years surely a rough guide would be to simply chose a claim limit that is within this range?
Not always. As you may already know there are three basic types of gap insurance all designed to protect you in various ways. This means that should your vehicle be written off they will do difference functions. The basic level simply clearing outstanding finance, the most common effectively protecting the invoice price you paid. The newest and most comprehensive protecting the true replacement cost.
With this in mind you will need to consider various claim limits based also on which level of protection you chose. For example a policy whose only function is to settle outstanding finance will need a smaller amount than a policy which will protect the invoice price.
This then means that should you choose for a style of cover which protects the replacement cost; you will need to factor in an extra amount for the inflationary increase as well as estimated deprecation.
Starting to sound like a lot of guess-work?
A slightly more scientific approach would be to first estimate the vehicle's depreciation and leave this as a minimum claim limit. Normally this is fifty percent. If the exact amount is not available always choose for a higher limit wherever possible and always add another minimum amount for vehicle replacement policies.
Remember that if you pick the policy that will protect you the way you want it to there should never be any surprises. This is of course providing that you have picked a claim limit large enough for the policy features to work.
As with any insurance bought in the United Kingdom you will automatically have a fourteen day "cooling off" period in which providing you have not attempted to make a claim you can simply cancel and ask for a full refund.
Jackie Verdier Sales Director at Aequitas Automotive Limited
As our name Aequitas ( the God of Far Trade) suggests our aim is simply to be fair and honest in all we do. No gimmicks, no fuss just fantastic service and real market leading prices via our two brands:
https://easygap.co.uk/
https://gapinsurance123.co.uk/.
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Jackie Verdier
Car Auto Article FeedFind More ArticlesSearchSimilar ArticlesBuying Car InsuranceCold Call Selling - Cold Calling Pressure by Insurance RepresentativesFour Ingredients For A Watertight Insurance ProgramThings to Avoid When Purchasing Auto InsuranceHow to Save Money on Insurance7 Steps For Cheap Auto Liability Insurance QuotesCar Insurance Coverage - Why It Makes Sense to Have the Right OneYour Insurance Coverage and Car AccidentsHow to Purchase Car Insurance Coverage?Auto Insurance PricingRecent ArticlesWhat You Need To Do To Obtain Cheap Car InsuranceReasons Why Men Are Better Drivers Than WomenHow Little Lies Can Cost You DearlyChoosing A Car Insurance Company To Insure Your Car WithDoes Credit Affect Insurance Rates?Facts On Cheap Young Driver Car InsuranceThe Benefits Of Online Comparison Shopping For Your InsuranceInformation About Connecticut Car InsuranceSave Money by Comparing Cheap Car Insurance Quotes OnlineWhen Was Car Insurance Invented and Why?Submitted On March 06, 2012. Viewed 1 time. Word count: 432.MLA Style Citation:Verdier, Jackie".".6 Mar. 2012EzineArticles.com.14 Mar. 2012
Verdier, J. (2012, March 6). . Retrieved March 14, 2012, from http://ezinearticles.com/?Why-Can-Claim-Limits-Vary-Depending-Upon-the-Level-of-Gap-Insurance-You-Buy&id=6923324Chicago Style Citation:
Verdier, Jackie "." EzineArticles.com. http://ezinearticles.com/?Why-Can-Claim-Limits-Vary-Depending-Upon-the-Level-of-Gap-Insurance-You-Buy&id=6923324
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