International Insurance Consultants

Contact: Mark Standen

Tel DL: +44 (0) 1322 476 276 . Mob +44 (0) 7427 628 886 Mocden					| Ins Services Insurance Services Mocden


Looking towards protecting the value of a vehicle purchase is one of those expenses that at times may appear to be a waste of money until you need it. Unless you have suffered a total loss to your vehicle through either collision or theft, you may be unfamiliar with this type of cover.

As soon as a customer drives their newly acquired vehicle off the dealer lot, their auto insurance in most instances is probably inadequate to protect them financially in the case of a total loss.

Assuming they have taken out a finance contract to acquire their vehicle, the auto insurance in most instances will only pay the lender the vehicle’s current cash value - not the current loan balance. The difference can be  thousands of dollars. And we all know once your new car - owned or leased - leaves the lot, it is considered a used car and the value of it drops significantly.  

In recent years, vehicles have held their values relatively well, but we project by the end of year three the average customer’s vehicle value will have dropped by at least 35%.

Conventional Gap Insurance covers the shortfall a customer may suffer between the pay-out from their primary motor insurer and the outstanding loan balance they have with their lender, but the Customer still remains out-of-pocket if he wishes to acquire a replacement vehicle.

Down Payment Guarantee is a new product which offers the customer further protection.

How does it work?

Down Payment Guarantee provides the customer with a credit, that when added to the total loss pay-out from their primary motor insurer, will enable them to purchase a subsequent replacement vehicle of a similar invoice value to what they paid originally.  

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