Make up the shortfall if a vehicle is written-off
What happens if one of your vehicles is written-off and the settlement from your motor insurer still leaves you out of pocket? Our vehicle finance shortfall cover could be the answer.
There are two types of financial shortfall cover. Both may provide protection against a financial shortfall if a passenger car or light commercial vehicle becomes a total loss due to fire, theft or accident.
- Return to Invoice - makes up the difference between the insurance payout and the cost of replacing the vehicle.
- GAP Protection - makes up the difference between the insurance payout and the money you owe under the finance agreement.
Return to Invoice cover
Return to Invoice cover pays the difference between the fully comprehensive road risks motor policy settlement (or the market value at the date of loss, whichever the insurer considers appropriate) and the cost of replacement. It's available for cars and light commercial vehicles, up to 3.5 tons.
The replacement cost is the current list price (for vehicles purchased as new) or the original purchase price (for vehicles purchased as used).
Any additional finance shortfall between the replacement cost and the early settlement figure on your finance agreement will also be paid.
- £15,000 cover limit - including any motor insurer's policy excess up to £250
- Three years cover - from the date of application (the vehicle must be less than five years old at the policy start date)
- Cash or finance purchase - return to invoice cover is available for vehicles acquired by any funding method (including cash purchase)
- No cancellation penalty or fees
Find out more
Return to Invoice Cover Summary (PDF, 60Kb, opens in a new window)
GAP Protection
GAP Protection pays the difference between the settlement from your fully comprehensive road risk insurer and the early settlement figure on your finance agreement (excluding arrears).
- £7,500 cover limit for passenger cars and light commercial vehicles up to 3.5 tons - including any motor insurer's policy excess up to £250.
- £15,000 cover limit for heavy goods and public service vehicles up to 44 tons - including any motor insurer's policy excess up to £250.
- Up to five years cover - from the date of the finance agreement. The vehicle must be less than five years old at the policy start date.
- No cancellation penalty or fees.
All valid claim payments are made direct to the finance company supplying the funds for the vehicle. Your business must contribute the settlement received from your fully comprehensive road risk insurer towards the finance settlement.
Find out more
GAP Financial Shortfall cover summary (PDF, 60Kb, opens in a new window)
Who is eligible for Return to Invoice or GAP Protection?
| YES | NO | |
|---|---|---|
| If you've answered "yes" to all of the above questions, you're eligible to take advantage of Lombard Return to Invoice or GAP Protection. Contact your nearest Lombard office to discuss your individual requirements and arrange cover. | ||
| Are you over the age of 18? |  |
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| Do you reside in the UK (includes Channel Islands and Isle of Man)? | |
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| Will your vehicle be covered by Comprehensive Motor Insurance? | |
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| Is your vehicle less than 5 years old? | |
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Important Information
The financial shortfall products have been specially negotiated and arranged through London General Insurance Company Limited. They are authorised and regulated by the Financial Services Authority with FSA registered number of FSA 202689 which can be checked on the FSA website (opens in a new window).
Lombard North Central Plc is an appointed representative of The Royal Bank of Scotland plc, which is authorised and regulated by the Financial Services Authority.
Details of the Financial Ombudsman and Financial Services Compensation Schemes, which may apply here, are contained within the policy.
