According to a
car finance
news report, new and used
car buyers could be losing out on thousands of pounds if
their car is written off. By not taking out two specific
insurance policies, the report argues,
car buyers are taking a risk.
The study was conducted by MBG, the largest privately owned
warranty provider in the UK. The
company reportedly said
that car buyers are missing out by not purchasing Return to
Invoice
Insurance (RTI) or
Guaranteed Asset Protection (GAP) from their
car dealer .
The company pointed to statistics that indicate over 500,000 cars
are written off every year in the UK. When this happens many
consumers are left owing
money to the
car finance company who they borrowed from. When it comes to
expensive new or
used cars,
insurance payouts may leave a wide gap.
Kevin Pearce, the operation director of MBG, reportedly
commented: We recently had a situation where a high value
prestige car was written off following an accident. The
shortfall between the insurance pay out and the outstanding
finance was £12000 because the car was only weeks into its
finance contract. Because the driver had taken out
GAP insurance at his franchised dealer the
policy paid out and was able to buy another car without being
out of pocket.
