Gap Cover provides benefit in the event that a customer has suffered a total loss under his primary motor insurance. There are a number of variants to this type of cover, but broadly it provides shortfall protection following a total loss to an auto vehicle, covering the difference between the cost of the replacement vehicle versus the original vehicle or the remaining amount outstanding under a finance contract after an insurance pay-out

Variants include:

• Original Invoice Protection or Return To Invoice - pays the difference between the amount paid by the underlying primary motor insurer and the original invoice price of the insured vehicle.

• Vehicle Replacement - pays the difference between the amount paid by the underlying primary motor insurer and the purhcase price of a new vehicle of a similar make or model.

• Financial Shortfall - pays the difference between the amount paid by the underlying primary motor insurer and the outstanding finance on their vehicle.

Add-ons and further coverages include:

• Excess Loss Gap (Deductible Reimbursement) - reimburses the insured for the deductible on their underlying motor insurance policy in the event of either a total or partial loss;
• Rental Vehicle Extension - All losses - pays the insured a fixed daily amount towards the cost of a rental car provided the insured has loss of use coverage following a partial or total loss;
• Enhanced Limited Depreciation on Used Vehicles - pays the difference between the depreciated value of the vehicle (the write off value) and the original purchase of the vehicle, plus 5% per year;
• Genuine Body Parts Reimbursement - Partial Losses - provides $10,000 per year towards the purchase of new manufacturer supplied replacement body parts in the event the vehicle is damaged due to a collision or comprehensive claim. Coverage is limited to a period of 3 years for vehicles for new current model years, and 2 years for new preceding model year vehicles.
• Deposit Gap Insurance - allows the customer to enter into a finance agreement for the purchase of a vehicle where they do not have the down payment. Cover steps in when the customer fails to meet his committed loan repayments or the vehicle is voluntarily repossessed;
• Default Gap Insurance - in the event the customer misses 3 monthly instalments of an unsecured loan following involuntary unemployment, disability or marital breakdown and the Debtor has exhausted all means of recovery pays the lesser of 105% of the purchase price of the vehicle or the amount owed to the Debtor;
• Smart Gap - pays a fixed amount following a theft of a vehicle which is not covered within 30 days. Usually offered to enhance the product offerings of any devices or other technologies to prevent theft
• Scratch and Dent Cover - pays the cost if parts and labour to the vehicle in the event of accidental damage to the bodywork or alloy wheels of the vehicle. It covers minor body chips and scratches, scuffed bumpers, ding and dent removal, alloy wheel scuffs. Cover periods run out to 12, 24 and 36 months.

For further information on coverages and or Underwriting Support please contact:

Mark Standen, Mocden Insurance Services

+44 (0)1322 476 276

+1 315 359 6005

+61 3 638 77 044

Mob + 44 (0)7427 628 886 or +61 (0)490 056 472

Email: mstanden@mocden.co.uk