It’s a fact of life that your vehicle will almost certainly lose value over time – the chances are you’ll never get back what you paid for it. But Total Loss Protection can help you make depreciation a thing of the past in the unfortunate event of your vehicle being written off.
Why do I need Total Loss Protection?
Total Loss Protection is designed to help bridge the gap between what you paid for your car and the insurance payout you receive if it is written off.
If you sell your vehicle, providing no claims have been made under the policy, you can transfer the cover to your new vehicle.
As soon as you drive your new car off the forecourt, it starts to devalue, especially with newer cars which depreciates at an accelerated rate.
Total Loss Protection helps to prevent a financial shortfall if your car is written off following a claim.
You may have outstanding bills to settle which may not be covered by your insurer’s payout and you almost certainly won’t get back what you paid for it.
Total Loss Protection can be an invaluable extra, in particular to younger drivers who have a heavily financed car. If you have bought your car on finance where the total amount you have agreed to pay for the car is worth more in value than the vehicle itself then should the worst happen your car would simply be written off should you have an accident.
Why do cars depreciate in value?
There are many reasons which can cause a car to lose its value. Generally, as cars age, their mileage increases and condition gets worse, resulting in a drop in value. Most vehicle will lose between 15% and 35% in the first year and up to 50% or more over three years. The main causes can be the reputation of the model, the number of owners or its service and MoT history.
What about modified and classic cars?
Modified or classic cars are often insured on an agreed value basis, however there may be some circumstances where agreed value is not available, such as a heavily modified car insured with no mileage restriction, or a classic vehicle that is kept on the road in certain parts of the country. If you fall into that category Total Loss Protection can be an invaluable top up to ensure they receive the true value of their vehicle in the event of a total loss claim.
Get Total Loss Protection
Our policy helps you to either pay off your outstanding loan or finance, or buy a replacement more in keeping with the car you drove off the forecourt.
While your vehicle’s insurer will only pay out its current market value, Total Loss Protection cover will top this up by 25 percent up to a maximum of £10,000.