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What is return To Invoice Gap Insurance? - for vehicle buyers using finance. - YouTube
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Hi and welcome to this short video clip from
our frequently asked question series brought
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to you by the car2cover team.
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In this video I'll answer the question "What
is Return To Invoice Gap Insurance?
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".
Return To Invoice Gap Insurance is a protection
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suited to those who have purchased or are
purchasing a vehicle using cash or some form
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of finance plan.
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In this video clip - we discuss Return To
Invoice for those who are financing but we've
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also prepared a separate video clip for those
who are using cash.
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When a vehicle is written off - your fully
comprehensive motor insurer will only pay
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the Market Value of your vehicle at time of
write off - and that figure may be substantially
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less than you originally paid and could also
be less than your lender requires to end your
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finance agreement.
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If you choose to protect your investment with
Return To Invoice Gap Insurance - our Insurer
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will pay the difference between the Market
Value write off figure paid by your motor
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insurer and the price you originally paid
for your vehicle.
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Let me give you a simple example;
• Let's assume I purchased a vehicle for
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£16,000 from my local motor dealer.
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• Let's also assume 3 years later my vehicle
is stolen and my insurer agrees to pay the
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Market Value which Glass's Guide say is £7,000.
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• That leaves me with a problem.
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I financed my car and the lender is asking
me to pay £9,000 to end my agreement.
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So I need to find £2,000 just to clear my
debt.
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• In this example, my Return To Invoice
insurance will pay the difference between
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my original purchase price of £16,000 and
the motor insurer's settlement of £7,000
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- which is £9,000.
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• From that £9,0000, my Gap Insurer will
send a cheque for £2,000 to my lender to
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clear my finance agreement, and will send
the balance of £7,000 to me to use as a deposit
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for my next car or to spend as I want.
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We all know that vehicles reduce in value
and we all plan for that when we choose to
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change our vehicle.
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However, very few of us plan or financially
prepare for a write off, and in these unforeseen
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and unexpected circumstances - Return To Invoice
Gap Insurance can step in to help provide
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the funds you need to end your finance agreement
and replace your vehicle.
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Return To Invoice Gap Insurance is an extremely
low cost cover that can provide up to £50,000
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of protection when you need it most.
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Return To Invoice Gap Insurance can only be
purchased before or within 180 days of taking
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delivery of your vehicle, if you have purchased
from a private source or you purchased over
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180 days ago, you may still be able to purchase
an Agreed Value Gap Insurance and we have
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prepared a series of short video clips to
explain.
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Because of professional theft is a major cause
of Gap Insurance claims, the sooner you take
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cover the better.
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In some cases, these policies can be created
with a 12 month deferred start date where
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your motor insurer provides 'New for Old'
cover in the first year.
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We've created a separate video on policy deferment
and if this is something you are considering
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- we would encourage you to view this video
to find out more, as there are some important
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things you need to consider before deferring
your policy.
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Return To Invoice Gap Insurance is available
for cars, vans, motorhomes and motorcycles
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that have been supplied to you by a VAT Registered
motor dealer and are under 8 years of age
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and under 80,000 miles at the start of the
policy, and there are no mileage restrictions
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once the policy has started.
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And finally....
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If you're comparing cover between two or more
brokers or perhaps your dealer, do bear in
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mind the policies will almost certainly have
different Terms & Conditions that affect what
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the Insurer will and will not pay for in the
event of a claim.
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We know our product features are the very
best in the market, and we would be happy
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to provide a free comparison with any other
product you might be considering - to help
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you make a more informed decision.
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Contact us to find out more or view our 'spot
the difference' video on this product.
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All insurances have Terms and Conditions and
eligibility criteria, so always refer to the
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Terms & Conditions before buying anywhere.
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Our Insurers Terms and Conditions are available
from our web site at the address shown below.
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I hope this helps and thanks for watching.
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If you need any further information - please
feel free to contact us using the details
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shown below.
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