As an Audi owner you will probably know that Audi offers a motor insurance policy for their cars! As well as the usual benefits of fully comprehensive insurance, Audi also offer protection whilst driving third party cars, windscreen cover, car contents, personal accident cover, cover for roof boxes and trailer, and foreign travel.
With this level of protection you might think that you are fully covered for every eventuality? Well, not quite! If your Audi is stolen or written off due to an accident or fire, all the above benefits will take effect, however there is one thing that will not be covered and that is depreciation! Most Audi drivers assume that fully comprehensive motor insurance will financially protect their investment after a claim.
The harsh reality is that most insurance claims result in significant financial loss due to the fact that insurance settlements are based on the current market value of a vehicle at the time of the claim, and not the original purchase price.
You can however protect your investment using a gap insurance policy.
What gap insurance does is cover the difference between the original purchase price and the insurance settlement amount.
There are several different types of cover available; the most popular is RTI Gap Insurance or return to invoice insurance, and vehicle replacement gap insurance.
A new Audi may not depreciate at the same rate as a Ford Mondeo for example; however a rate of 40% is not uncommon during the first 2 years of ownership.
Take an example of an Audi A4 2S-Line costing just short of £30,000 when new.
According to Parker Guide, a 2009 model is now around £18,000 as a part-exchange.
That's over £10,000 in depreciation within the first two years of ownership.
Without a gap insurance policy, you would have to fund the gap yourself! With car depreciation levels increasing, even makes like Audi, BMW and Mercedes is is not worth the gamble to not have gap insurance cover when you consider that you can purchase a gap insurance policy for around £100!
With this level of protection you might think that you are fully covered for every eventuality? Well, not quite! If your Audi is stolen or written off due to an accident or fire, all the above benefits will take effect, however there is one thing that will not be covered and that is depreciation! Most Audi drivers assume that fully comprehensive motor insurance will financially protect their investment after a claim.
The harsh reality is that most insurance claims result in significant financial loss due to the fact that insurance settlements are based on the current market value of a vehicle at the time of the claim, and not the original purchase price.
You can however protect your investment using a gap insurance policy.
What gap insurance does is cover the difference between the original purchase price and the insurance settlement amount.
There are several different types of cover available; the most popular is RTI Gap Insurance or return to invoice insurance, and vehicle replacement gap insurance.
A new Audi may not depreciate at the same rate as a Ford Mondeo for example; however a rate of 40% is not uncommon during the first 2 years of ownership.
Take an example of an Audi A4 2S-Line costing just short of £30,000 when new.
According to Parker Guide, a 2009 model is now around £18,000 as a part-exchange.
That's over £10,000 in depreciation within the first two years of ownership.
Without a gap insurance policy, you would have to fund the gap yourself! With car depreciation levels increasing, even makes like Audi, BMW and Mercedes is is not worth the gamble to not have gap insurance cover when you consider that you can purchase a gap insurance policy for around £100!
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