For a motoring enthusiast, collecting a new car is always a highlight.
You get to the showroom, perhaps after waiting many months for your car to arrive. You’ve been getting updates as the car is built and the dealer has sent you a few photos as the protective transit covers are removed.
And finally, there it is: your new car. It could be your first, or simply your latest – but the new car smell, fresh leather, and flawless paintwork are just as magnificent.
But not so fast! Before you jump into the driver’s seat, it’s important to first make sure your new car is protected should the unthinkable happen.
Below, we’ve put together a few things you should consider:
1. Agree the value of your car
Many specialist cars tend not to depreciate in the same way as higher volume models. Some may even appreciate, particularly if they are produced in very low numbers or celebrate a car’s anniversary.
If you plan to keep your new car longer term, then we can arrange for it to be insured from day one on an agreed value basis. This means that you will be paid the amount shown on your policy without any quibbling.
If your car is worth less than £300,000, you won’t need to provide a valuation and if it is worth more, then all we need is a copy of the purchase invoice within 30 days of cover starting.
2. Protect against depreciation
If you buy your new car using finance, your lender will charge you interest on the total cost of the purchase. This means that if your car depreciates from the point of sale, its value will be less than the amount borrowed plus interest, even as the amount you owe reduces over time.
Therefore, if your car is later written off following a collision or other incident, or stolen and not recovered, the sum you receive from your insurer may not be sufficient to clear the outstanding finance. This 'gap' is what's covered if you choose to take out a GAP insurance policy.
Our policy includes GAP cover as standard. Find out more here (opens a new window).
3. Think ahead when it comes to replacements
If your new car is stolen and not recovered, or written off following a collision, many policies will replace it with another similar specification model for up to 12 months following the date it was first registered. But if an incident occurs after that date, your vehicle won’t be covered.
Our policy goes a step further and extends this period to 2 years following its first registration.
4. Install a tracking system
Some cars may require a Thatcham-Approved tracking system to be installed for theft cover to be provided.
While insurers may agree to a period of grace to have this work done, it is usually more convenient to make sure that the supplying dealer is aware and can have the necessary system installed before delivery to you.
If your car already has a system installed, it may need to be activated by you, and the dealer can assist with this.
Most importantly, any tracking system mandated by the insurer must have its subscription activated and maintained and this is not always done automatically, so you will need to ask your dealer for guidance around activation.
Read more about keeping your car safe (opens a new window).
If you’d like to know more, reach out to a member of our team.
*Terms and conditions apply.
