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(Guaranteed asset protection)
In the event that your car is stolen or "written-off" in an accident
the insurance payment
may not cover the total amount outstanding on the finance agreement.
As an example:
24 months into a 36 month contract, your car is written-off and the
insurance company value it at £12,000.
You still have 12 monthly payments outstanding at £350 per month,
a total of £4,200.
The Funder had calculated the value of the car at the end of the 36
month contract to be £10,000.
Result:
The settlement figure with the Funder is £14,200
The insurance company compensates the Funder for the written-off car
at £12,000
and the difference of £2,200 is covered by GAP insurance.
Standard GAP insurance covers a gap of up to £5,000.
GAP insurance can be added to your contract for between £3 and £5
per month. |
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