Van Gap Insurance

How much is your used car worth and why does it matter?

Van gap insurance is essentailly just like any other form of gap insurance. What we mean by that is that you can still protect yourself with the standard forms of gap insurance such as finance gap insurance, contract hire gap insurance, return to invoice and vehicle replecement insurance.

It is very rare but you may also depending upon your own insurance company be able to take advantage of a deferred policy.

There are however two major things that will affect any van gap insurance policy you buy.

The first is that in most cases your van will have to be under a certain gross vehicle weight. This is normally 3500 kg. This is beacuse anything over this weight is not classed as LCV ( light commerical goods ) and instead you will need to find specialist cover.

The second important factor really only applies if you are vat regsitered. This is becuase if you are vat registered then chances are that you will have claimed back the VAT elelemnt back already. So this means that when it comes to making a claim any settlement will be less VAT. After all it is not paoosible to pay VAt claim it back and then be paid it again.

So most inportantly you need to know your gross vehicles weight before you consider any form of van gap insurance.

That said the same rules apply about chooseing levels of cover and claim limits. So just as alawys you need to take a few moments to decide what you want your policy to do for you if your van is wrritten off.

If you have bought your vehicle on a form of contract hire or if you simply want your policy to pay the difference between your vans valuation and the outstanding finance you need to consider a form of finance and contract hire gap insurance.

If you want to portect the invoice price you paid, that is to say that between the two insurance companies you will get the invoice price back ( less road fund licence which you can claim back from DVLA ) from this you can clear any outstanding finance i any and then the deposit and the equaity you have accured is yours to do with as you see fit.

Vehicle replacement Insurance is very similar to return to invoice but with one distinct difference. Instead of the two insurance companies effectivily giving you back the invocie price they give yo back the amount you would need to spend to buy another van the same age mileage and condition as yours was on the day you drove it home from the dealership.

So why not take a fresh look at van gap insurance?

 

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