GAP Protection. Keeping your business moving. For cars and commercial vehicles

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1 GAP Protection Keeping your business moving For cars and commercial vehicles Generated at: Wed Mar 26 16:25:

2 The only people who can really make a positive contribution to your business are those with a first-hand understanding of how you work and the daily challenges you face. Their insight is vital to providing relevant financial solutions that help build the momentum your business needs to succeed. This is where Lombard excels. For the past 150 years, we have been a trusted partner to customers across a diversity of sectors, giving them the support and expertise to build more sustainable futures.

3 Minimising the impact of vehicle write-offs With around 500,000 (source: AutoCheck Experian 2010) vehicles written off each year, there are plenty of reasons to think about the serious business consequences of having one or more of your vehicles off the road. Replacing a business vehicle is rarely straightforward or cheap, especially if your motor insurance is not sufficient to cover outstanding payments on a finance agreement. Your business may have to make up the difference and find the capital for a new vehicle. Fortunately, there is a way to protect your business from the impact of these unbudgeted costs. 1

4 Simple, smart, secure Financial Shortfall GAP (FS GAP) protects you against continuing to pay finance for a vehicle which has been written off due to an accident, malicious damage, fire or theft. Alternatively, you can opt for some extra protection with a Return to Value (RTV) policy that covers financial shortfall and contributes towards the cost of a replacement vehicle. These products are provided by London General Insurance Company Limited and administered by TWG Services Limited. Minimises the risk of negative equity if your vehicle is a write-off Can be cancelled at any time by giving 30 days notice Financial Shortfall GAP cover If you purchase FS GAP and your vehicle is written off as a result of an accident, malicious damage, fire or theft, FS GAP will pay the difference between any finance outstanding on the vehicle and the market value of your vehicle, typically the payout you receive from your comprehensive motor insurance policy. Naturally, any payments will be made dependent on the claim meeting the policy terms and conditions. 2

5 Minimises the risk of negative equity if your vehicle is a write-off Prevents you having to trade down to a cheaper, less efficient vehicle Pays out towards the cost of a replacement vehicle Can be cancelled at any time by giving 30 days notice Minimises the risk of negative equity if your vehicle is a write-off Pays out towards the cost of a replacement vehicle Can be cancelled at any time by giving 30 days notice Return to Value (RTV) cover: new vehicles If you purchase RTV on a new vehicle and it is written off as a result of accident, malicious damage, fire or theft, RTV will pay the difference between: The current market value of the vehicle (typically the comprehensive motor insurance policy pay-out) and The current list price of the vehicle. Payment will be made to the finance company to settle the outstanding finance and the balance will be paid to you to assist in the purchase of a replacement vehicle. Naturally, any payments will be made dependent on the claim meeting the policy terms and conditions. Return to Value (RTV) cover: used vehicles If you purchase RTV on a used vehicle and it is written off as a result of accident, malicious damage, fire or theft, RTV will pay the difference between: The current market value of the vehicle (typically the comprehensive motor insurance policy pay-out) and The original purchase price of the vehicle. If the insurer does not think you paid a fair market value for the vehicle, they can exercise their right to use their own market valuation, based on Glass s Guide, an independent and industry recognised vehicle valuation guide. Payment will be made to the finance company to settle the outstanding finance and the balance will be paid to you to assist in the purchase of a replacement vehicle. Naturally, any payments will be made dependent on the claim meeting the policy terms and conditions. 3

6 Financial Shortfall GAP pays out the difference between the value of your vehicle and the outstanding finance on your agreement less any arrears Value of your vehicle Shortfall Outstanding finance Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Time RTV new vehicle pays out the difference between the value of your vehicle and the current list price of the vehicle Current list price Value of your vehicle Shortfall Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Time RTV used vehicle pays out the difference between the value of your vehicle and the original purchase price of the vehicle Value of your vehicle Shortfall Original purchase price These graphics are for illustrative purposes only. 4 Yr 1 Yr 2 Yr 4 Yr 5 Time

7 Extra protection, extra reassurance Financial Shortfall GAP Maximum benefits 7,500 for passenger vehicles and light commercial vehicles (LCVs). 15,000 for heavy goods vehicles (HGVs) and public service vehicles (PSVs). Maximum benefit includes 250 towards the insurance policy excess. Period of cover Up to five years from the date you purchase the policy. Types of vehicle covered Passenger cars and LCVs up to 3.5 tonnes gross vehicle weight. HGVs up to 44 tonnes gross vehicle weight and PSVs (vehicles licensed to carry nine or more fare-paying passengers). Certain categories of vehicles are not covered, eg taxis, courier vehicles, daily rental vehicles and vehicles which have been modified. Details of all excluded vehicles are in the policy summary document. RTV Maximum benefits 15,000 including 250 towards the insurance policy excess. Period of cover Up to three years from the date you purchase the policy. Types of vehicle covered Passenger cars and LCVs up to 3.5 tonnes gross vehicle weight. Certain categories of vehicles are not covered, eg taxis, courier vehicles, daily rental vehicles and vehicles which have been modified. Details of all excluded vehicles are in the policy summary document. Please Note: The customer must be the owner of the vehicle therefore Leases or agreements which do not include an option to buy are specifically excluded. Payout and Limitations We will pay the excess on your motor insurance policy, up to 250. A payout will not be made if it transpires that the vehicle was being driven illegally or the vehicle is not covered by a fully comprehensive motor insurance policy. A payout will not be made if you are offered a replacement vehicle under your comprehensive motor insurance, whether you accept it or not. Any extras you purchased when you bought the vehicle will not be considered part of the vehicle price when calculating your payout. These include things like a road fund licence, accessories fitted by the dealer and cherished number plate transfers. Please see your policy summary of cover and terms and conditions for more details. Am I eligible for FS Gap or RTV cover? Yes No Are you over the age of 18? Do you reside permanently or is your company registered in the UK (includes Channel Islands and Isle of Man)? Will your vehicle be covered by Comprehensive Motor Insurance? For RTV, are you the owner of the vehicle? Is your vehicle less than 5 years old and not one of the excluded vehicle types listed in the summary of cover? If you have answered yes to all of the questions above you are eligible to take advantage of the Lombard Financial Shortfall GAP or RTV policies. 5

8 Keeping your business on the road Over the years, our insurance partner s expert teams have dealt with numerous claims across a wide range of industry sectors. Here are a few examples of how our customers have benefited from GAP: When a Lombard customer found that his BMW X6 had been stolen his insurance company paid out 30,440. Our RTV (used) policy paid out 14,015 to take him back to the original purchase price. The owner of a coach hire business returned to his BMW 535 to find that it had been broken into and set on fire. Our RTV for used vehicles paid out 10,507 to return him back to his original purchase price. 6

9 We can protect the value of your assets, keep your business moving and help safeguard your future When the owner of a Mercedes E class went to his vehicle he found that a third party had driven into the back of it. His insurance company paid out as a total loss and our RTV (new) policy paid out 14,426 to give the customer the difference from his insurance company s payout back to the current list price to enable him to replace the vehicle. When a haulage company s driver went to the depot to collect his tipper truck for work the driver found that it had been stolen. It was recovered 2 weeks later. His road risk insurer paid out as a total loss. Our Financial Shortfall GAP insurance policy taken out to protect his investment paid out 6,940 to clear the shortfall on the customer s finance agreement. 7

10 Check the detail before you buy This brochure only gives an overview of the Lombard GAP policies. You must make sure the policy is right for you by carefully reading the policy summary of cover document, referring where necessary to the terms and conditions. If you have any queries, please check with your relationship manager. For more information on our insurance products, including how to make a claim, please go to: 8

11 GAP Protection policies are underwritten by London General Insurance Company Limited, registered number whose head and Registered office is at: Integra House - Floor 2, Vicarage Road, Egham, Surrey TW20 9JZ. GAP Protection policies are administered by TWG Services Limited, registered number whose head and Registered office is at: Integra House - Floor 2, Vicarage Road, Egham, Surrey TW20 9JZ. The insurer is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority with a registered number of which can be checked on the FCA website. English law applies to GAP Protection. Details of the Financial Ombudsman and Financial Services Compensation Schemes, which may apply here, are contained within the policy summary of cover document and terms and conditions. Your premium includes Insurance Premium Tax at the appropriate rate. If there is any future change in the rate of Insurance Premium Tax your premium will be automatically adjusted. Any alteration in the rate of this tax will be announced publicly. For Insurance Mediation, Lombard North Central Plc is an appointed representative of The Royal Bank of Scotland plc, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

12 Contact us No matter where you are, you re never far away from a Lombard expert. For more information and support, simply call your nearest Lombard Business Centre or visit us online. Calls may be recorded. Call Text Relay lombard.co.uk LBF /14