Gap Insurance Market Value Clause.

Is a Gap Insurance Market Value Clause Important?

If you are searching for shortfall protection on line you may of heard of a terms called “Gap insurance market value Clause“.

So what is a Gap insurance Market Value Clause?

How Can a Gap Insurance Market Value Clause affect you?

Is a Gap insurance Market Value Clause something that should concern you?

When it comes to shortfall cover the terms market value clause can be used in two very different ways.

The first gap insurance market value clause can prefer to the price that you paid for your used car or vehicle. This is because some gap insurance suppliers will limited the price that you paid for your gap insurance to a percentage of a guide price. This means that if you paid £10,000 for a vehicle but in reality the market value was just £9500 then £500 could be deducted from any claim you make. This means that where ever possible make sure that before you buy gap insurance that it does not have a market value clause relating to the purchase price you paid.

The second reference of market value refers to how much you own insurance company pay for your vehicle when it is written off. So what happens if the two insurance companies do not agree with each other. What if they value your vehicle at different amounts.

This we know through experience is the area of cover that concerns the general public the most. After all to make a gap insurance claim your vehicle will have just been written off. Just the fact that your vehicle has been stolen or worse that you have been involved in an accident is stress full enough in its own right, so imagine now being caught in the middle of two insurance companies.

This is where we genuinely think that our gap insurance policies are unique as in part of the claims pack you have over authority for the two insurance companies to talk to each other. This means that essentially as soon as you have completed the claims pack you can take a back seat. Being completely frank this means that as the two insurance companies are both valuing the same vehicle at the same time using the same guides it is very difficult from them not to agree on a price. This speeds up claims and means that you are not left to negotiate and payment is much quicker.

So when it comes to a gap insurance market value clause the only time that you should ever be concerned is if your purchase price is limited in any way.

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