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What is Shortfallcover (VRP) (RTI) (GAP) Insurance?
If your car is a ‘Total Loss’ due to an accident, fire or theft, this policy will pay the difference between the amount you receive from your motor insurer and the price you originally paid a dealer for the car or Parkers Guide "Private Good" value at the time of purchasing the policy, if you already own the vehicle or bought it privately.
What are the major differences of Shortfallcover to other providers?
What is a "Total Loss"?
A ‘Total Loss’ means that the damage to your vehicle is greater than the vehicle's value. This means that your car insurance company will not pay to fix it, and will instead pay you the Insurers valuation.
How does Shortfallcover work?
If you paid £15,000 for your new or secondhand car then suffered a ‘Total Loss’ during the policy period and were offered £10,000 by your motor insurer, Shortfallcover Insurance will pay the difference of £5,000.
What is the Maximum amount Shortfallcover Insurance will pay?
Customers have a choice of claim limits up to a maximum of £25,000 which should be chosen on the anticipated devaluation of the vehicle in the selected term of cover.
What Claim Limit should I choose?
Take an example: vehicle purchased at £15,000 which depreciates according to car guides by 15% per annum. Therefore -
12 months value - £12,750 Depreciation £2,250 Suggested Claim Limit £ 5,000
24 months value - £10,500 Depreciation £4,500 Suggested Claim Limit £ 5,000
36 months value - £ 8,250 Depreciation £6,750 Suggested Claim Limit £10,000
How long does the cover last?
Customers have the choice of cover available from 1 to 4 years so you can choose the level and term of cover based on how long you believe you will keep the car.
Can the Insurance be transferred?
No. When you sell or transfer ownership of the vehicle the Insurance is cancelled.
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