How can businesses benefit from using gap insurance on their commercial vehicle fleet?
Where businesses are concerned, having the appropriate insurance for your assets is crucial. When protecting your cars and other vehicles that are used day-to-day for the running of your company, having adequate protection is a must and will ensure you don’t suffer with loss of profits should accidents happen.
Why is gap insurance important for businesses?
What a lot of businesses don’t know, is that regular business car insurance is not enough to cover your fleet. If a vehicle is written off then the insurance policy will only pay out the current value market of the vehicle, and with depreciation hitting a whopping 60% after just three years of ownership, this could mean your company would be out of pocket and also without a vehicle if an accident does occur.
Why smart business owners are choosing gap insurance
This optional insurance policy covers any shortfall your company may have between the insurance pay out and the amount that was paid for the vehicle, either in full or through a finance agreement. It protects your assets and means you could get a like-for-like replacement should anything happen.
If you own a business which relies on your employees to drive to and from jobs or work as tradespeople, having a vehicle written off can be detrimental to your profits.
Gap insurance for a business is best bought from specialists like ALA who can discuss the best level of cover with you. They offer varying levels of protection from commercial return to invoice, commercial vehicle replacement and commercial contract hire gap.
Commercial return to invoice will protect the price you paid for your van or car and have enough money to clear any outstanding finance in the event that the vehicle gets written off completely.
Commercial vehicle replacement will protect against the depreciating value of the company vehicles and protect the value, not just what you paid for it.
Commercial contract hire will cover your liability under the contract hire agreement should your vehicle be a write off. It will also enable you to get a new vehicle on a new agreement with no debt from the previous.
If your business vehicles are new or used under 10 years with less than 80,000 miles and were collected in the last 365 days, why not look into getting gap insurance for your company. It could save you money and a big headache in the long run, protecting your assets and future profitability.
