Many people are opting out of company car schemes. The new tax regime means you can be much better off
financially and have the flexibility to choose your own car. It can, however, be risky.
What if you need to sell your car and terminate the agreement for some reason?
Because cars tend to depreciate quickly in the first year, then more slowly as they get older, there is a risk that you
will owe more to the finance company to settle the agreement than the car is worth. In other words, there is a "GAP".
For example, what if you were made redundant or lose your driving licence due to ill health? Alternatively,
what if your car is involved in an accident and written off, or is stolen?
Fortunately, we can soften the blow with Early Termination Insurance. It pays out to cover the shortfall, up to
a maximum of £5,000, if you have to terminate your finance agreement due to:
- being made redundant
- losing your driving licence on medical grounds
- your death
- the car is involved in an accident and written off
- the car is stolen and not recovered
- Applicable to employees only
- Maximum agreement term is four years
- Applies only to PCP and
PCH agreements
- No maximum invoice price
- Redundancy in the first six months
- Self-employed, or employees on a time- or project-limited basis
- Dismissal
- Failure to complete a probationary period
- Excess mileage charges or finance arrears
- The vehicle is written off whilst being driven illegally and/or under the influence of
drugs or alcohol
- Vehicle is not covered by a comprehensive motor insurance policy
Policy Summary - Download the policy summary for more details of the policy.
About our Insurance Services - Keyfacts about the insurance products and services we offer.
For a quotation, to arrange cover, or for more information, please call us on 08000 833 711, option 4.
XLCR Vehicle Management Ltd is authorised and regulated by the Financial Services Authority for general
insurance business.
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only choose BVRLA- &
Financial Services Authority-approved dealers for your vehicles, finance and insurance.
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