Most people know that new cars drop in value as soon as they're driven off the forecourt. While the value they lose is sometimes exaggerated, depreciation is more than an urban legend, with some cars dropping up to 60% of their value by the end of its first three years.
Cardiff (PRWEB) August 8, 2009
Confused.com has launched a market-first 'gap' car insurance product that provides protection to drivers from the falling values of cars. Until now gap insurance has been the domain of car dealerships, but Confused.com - in association with the Future45ltd - has cracked the market wide open. For the first time ever, drivers, worried about plummeting vehicle values will be able to find easy and accessible policies which will protect them against the difference between a typical comprehensive insurance policy cash pay-out and the value of the car today.
In association with Future45ltd, Confused.com has introduced the 'Car Depreciation' insurance policy to bridge the difference between a typical comprehensive insurance policy 'pay-out' and the value of the car from the day the insurance is purchased. In the event of a write-off or theft, most insurers are only obligated to pay-out on the market-value of the car on the day of the incident - a potential roadblock for replacing the vehicle.
Will Thomas, head of car insurance quotes, at Confused.com, said: "Car Depreciation, or 'gap' insurance as it's commonly known, has been a secret for far too long. We're delighted to let the cat out of the bag as savvy motorists can now quickly and easily buy polices to protect themselves against falling car values."
"Most people know that new cars drop in value as soon as they're driven off the forecourt. While the value they lose is sometimes exaggerated, depreciation is more than an urban legend, with some cars dropping up to 60% of their value by the end of its first three years."
"This means that if a driver's car is a write off or stolen, they may only receive £4,000 despite paying £10,000 for it only a few years previously. This could be very disappointing for the owner and prohibit the purchase of a new car. However, if the owner has a Car Depreciation insurance policy, they will receive the difference between those two sums."
The Car Depreciation insurance is available through Confused.com on new cars or cars that have been owned for up to seven years. They can be owned outright, have been bought on finance or with a personal loan, can be contract hire or even on a lease agreement. There are also cover options for taxi drivers and driving instructors. With nine optional upgrades available, including a special excess buster option, the policy offers total flexibility and starts from as little as £82 per year.
NOTES TO EDITORS
*Statistic taken from http://www.theaa.com 'Depreciation the biggest cost after fuel purchase' -After fuel, depreciation is the biggest factor affecting the cost of motoring and it can vary greatly from model to model. Year one By the end of the first year, the average car has lost around 40% of its value. But this varies greatly from car to car. Very popular models such as Mini Coopers may lose as little as 10% of their value. Year three If you do 10,000 miles a year, the average car will have lost around 60% of its value by the end of its third year.
For further information please contact:
Will Thomas, head of motor insurance, Confused.com - 02920 434 235/07875405566
Press Office - 02920 434 398
Confused.com is one of the UK's biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.
Confused.com has a panel of 83 motor insurance providers and could save customers over £205* on their annual car insurance policy.
Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com's service is based on the most up-to-date information provided by UK suppliers and industry regulators.
Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA.
*12% of customers who received a motor insurance quote in the first quarter of 2009 and provided a best alternative price saved over £205.80.