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GAP Insurance for MINI: A Comprehensive Guide

 

MINI, a British automotive marque now owned by BMW, is renowned for its small cars that have become an icon of the 1960s British popular culture. The original MINI model was designed by Sir Alec Issigonis and was built under the British Motor Corporation, British Leyland and Rover Group umbrella from 1959 until 2000. Following the sale of Rover, the current MINI brand is produced by BMW.

 

 

The current MINI Range

 

MINI offers various models to cater to different customer needs and preferences. From the classic 3-Door Hatch, which embodies the essence of low-centre-of-gravity handling, to the spacious and versatile Countryman, there's a MINI for everyone.

 

The brand also embraces the future of motoring with its all-electric MINI Electric model and the Plug-in Hybrid, combining combustion engines with electric drive.

 

Owning a compact and stylish MINI is the aim of many car buyers.

 

But when you invest in a MINI, you may want to ensure that your investment is well-protected. If it is stolen or written off during your ownership, you are concerned about where the market value settlement from your motor insurer could leave you.

 

That's where GAP Insurance comes in.

 

What is GAP Insurance?

 

GAP Insurance, or Guaranteed Asset Protection insurance, is a type of car insurance that covers the difference between the market value of a vehicle and the outstanding finance still owed on the financing (HP or PCP, contract hire agreement or lease, etc.) the original price your paid or the replacement cost in case your car is written off or stolen.  MINI GAP Insurance

 

What exactly you are covered for depends on your GAP Insurance type.

 

It's an additional layer of protection that goes beyond what your standard car insurance offers.

 

Why Do You Need GAP Insurance for Your MINI?

 

With their unique mix of style, performance, and premium quality, MINI cars can be a significant investment.

 

But like any car, you can be unlucky. Your MINI could be stolen or written off following an accident, fire, theft or flood.

 

While your standard motor insurance policy will cover the market value of your car in case of a write-off or theft, it may not cover the total amount you owe on your finance agreement or the cost of a brand-new replacement car.

 

This is particularly important considering that new cars, including MINIs, can depreciate quickly in their first few years.

 

GAP Insurance covers this 'gap' caused by depreciation, ensuring you're not left out of pocket.

 

That is not to say that GAP Insurance is not a consideration on a used car either. Used MINIs are still expensive to buy. They will still lose money over time. Most are funded in some way, also. GAP Insurance is still worth looking at on a used car purchase.

 

GAP Insurance Options for MINI Owners by GAPInsurance123

 

When you purchase a MINI, it can be a significant investment. To protect this investment, the dealership may offer you MINI GAP Insurance. This can help you protect against financial loss if the car is stolen or written off.

 

The Mini GAP Insurance offered by your dealership is not your only option. Buying Mini GAP Insurance from the dealer is convenient, but better alternatives may exist. It certainly won't be the cheapest option in most cases.

 

GAPInsurance123 offers a range of options for GAP Insurance for Mini. Here's a breakdown of how each type of GAP Insurance we offer would work for a MINI car buyer:

 

Return to Invoice GAP Insurance for MINI

 

Return to Invoice GAP Insurance bridges the gap between what your car insurance pays out and the original purchase price paid for your MINI.

 

If your car is written off or stolen, your car insurance will only pay the vehicle's market value at the time of the incident. However, with Return to Invoice GAP Insurance, you will receive a payout that brings you back to the original invoice price you paid, ensuring you don't lose money due to depreciation.

 

For example:

  • You buy your MINI for £23,000

  • The car is stolen two years later, and your motor insurance company pay out the market value in a settlement. Say that is £14,000

  • The Return to Invoice GAP bridges the £9,000 shortfall in value due to depreciation.

  • You get £14,000 from your motor insurance total loss settlement.

  • You get £9,000 from the Return to Invoice GAP Insurance for your MINI.

  • You have your original £23,000 back in total and are not left out of pocket.

 

Vehicle Replacement GAP Insurance for MINI

 

Vehicle Replacement GAP Insurance goes one step further than Return to Invoice. It covers the difference between your car insurance payout and the cost of an equivalent MINI of the same make, model, age, mileage and specification as your original car, even if the price has increased.  GAP Insurance options for MINI

 

This means you can replace your written-off or stolen MINI with the same standard as your first bought without worrying about the additional cost.

 

So if you originally bought a brand new MINI, the equivalent replacement would be a brand new one of the same specification when you make a claim.

 

If your MINI were a 2-year-old, 20,000-mile example when you bought it, then the equivalent replacement cost would be a 2-year-old, 20,000 example when you make a claim.

 

For example:

  • You buy a brand new MINI convertible for £26,000

  • Three years later, it is in an accident and written off. The motor insurer pays out a market value settlement of £16,000.

  • The cost of the equivalent brand new MINI convertible is now £28,000

  • The Vehicle Replacement GAP covers the difference between the £28,000 replacement cost and the £16,000 paid out by the motor insurance when your car was declared a total loss.

  • You will have a total of £28,000 to cover the cost of a replacement vehicle.

 

 

Contract Hire & Lease GAP Insurance for MINI

 

Lease GAP Insurance is ideal for MINI owners who have leased their cars. If your leased MINI is written off or stolen, Lease GAP Insurance covers the difference between your car insurance payout and the amount needed to settle your lease. This ensures you're not left with outstanding lease payments for a car you no longer have.

 

You also have the option to cover the advanced rental payment on your Contract Hire agreement. This is called deposit protection. You can cover up to £3,000 or any advanced rental payment to claim back and use a deposit on your replacement vehicle.

 

An example of how Contract Hire and Lease GAP Insurance works:

  • You lease a new MINI. Its value is £28,000. The lease agreement has nine times the monthly rental of £300 as an advanced rental, followed by 35 additional rentals of £300.

  • Two years later, the MINI is subject to car theft. The car insurance pays a market value of £16,000 in a settlement.

  • The lease settlement is £17,500.

  • The Contract & Lease GAP Insurance covers the difference between the lease settlement of £17,500 and the market value settlement from the motor insurer of £16,000. In addition, if the Deposit Protection optional cover was taken with the GAP Insurance, then the advanced rental payment of £2,700 can be covered.

  • This provides a maximum total GAP Insurance settlement of £4,300. This allows the lease to be cleared and gives you £2,700 for a deposit for a replacement vehicle.

 

Agreed Value GAP Insurance for MINI

 

Agreed Value GAP Insurance (also known as Return to Value GAP) is based on the value of your MINI when you take out the policy rather than the invoice price. If your car is written off or stolen, this policy pays the difference between your car insurance payout and the agreed value of your vehicle when you took out the policy.

 

The 'agreed value' is based on Glass's guide retail value for the vehicle when the policy is purchased.

 

An example of how Agreed Value GAP can work for your MINI:

  • You buy a second-hand MINI privately. Its Glass's Guide Retail Value is £18,000

  • Three years later, the MINI suffered a fire and was written off by the motor insurer. The market value is now £11,000.

  • The Agreed Value GAP can cover the difference between the original 'Agreed Value' of £18,000 and the write-off settlement of £11,000.

  • This means you will get £11,000 from your motor insurer and another £7,000 from the Agreed GAP Insurance. This gives you £18,000 back in full.

 

In conclusion, GAPInsurance123 offers a variety of GAP Insurance options to suit the needs of every MINI owner who wants to be fully protected if the car is declared a total loss. Whether you've bought your MINI new, used, or leased it, you can buy GAP Insurance that protects your investment and gives you peace of mind.

 

Why Choose GAPInsurance123 for Your MINI?

 

1. Comprehensive Coverage: GAPInsurance123 provides policies that cover the full purchase price of your MINI. This includes all factory-fitted extras and up to £1500 of dealer-fitted extras plus a contribution to any motor excess deduction.

2. Claim Limit Options: We offer a simple range of claim limit options. RTI and VRI policies have no claim limit up to £75,000 purchase price and a £75,000 cap for vehicles purchased between £75,000 and £100,000. Contract Hire GAP has unlimited claim caps for rentals up to £750 a month and £25,000 for rentals between £750 and £1,000 a month.

3. Flexible Policy Terms: Our policies are available for up to 5 years, providing long-term protection for your investment.

4. Transferrable Policy: If you decide to change your vehicle before the end of the policy term, you can transfer the remaining cover to your new car.

5. UK-Based Claims Team and Insurer: Our experienced, UK-based claims team is on hand to help you through the claims process, making it as straightforward and stress-free as possible.

 

Key Takeaways

  1. MINIs can be a sizeable financial investment and can suffer a depreciation in value, over time, like any car.

  2. Looking to buy GAP Insurance can provide valuable protection. You can buy the endorsed MINI GAP Insurance policy from the main dealer. However, you do not have to.

  3. The MINI GAP Insurance quote can be far higher than you can find with an independent provider, like GAPInsurance123, for an equivalent product.

  4. The range of MINI GAP Insurance covers in the showroom can be restricted. For example, the most comprehensive MINI GAP Insurance is often a Return to Invoice policy. Whilst these are good products, a Vehicle Replacement GAP could be a broader choice for a new car in particular.

 

FAQs

 

Q: What does GAP Insurance cover that regular insurance doesn't?

A: Regular car insurance only covers the market value of your car at the time of a write-off or theft. GAP Insurance covers the difference between this market value and the amount you originally paid for the vehicle, the replacement cost or the amount you still owe on finance or a lease.

 

Q: Can I get GAP Insurance on a used MINI?

A: GAPInsurance123 offers GAP Insurance policies for new and used vehicles, including MINIs.

 

Q: Can I transfer my GAP Insurance if I get a new car?

A: Yes, if you decide to change your vehicle before the end of the policy term, you can transfer the remaining cover to your new car. Of course, it will need to be eligible, but we can check that for you.

GAPInsurance123 benefits allow one free-of-charge policy transfer during the term. Any more transfers would be subject to a £35 fee.

Any transfer request is subject to no claim having been attempted on the policy.   GAP Insurance for MINI from GAPInsurance123

 

Q: How do I make a claim on my GAP Insurance?

A: If you need to make a claim, you can contact our UK-based claims team, who will guide you through the process. Your motor insurer must write off the vehicle officially. They will then offer you a settlement. It is vital that you then contact our claims team before you accept the offer and lodge your GAP claim.

 

Q: How is the claim limit for a GAP Insurance policy determined?

A: The claim limit for a GAP Insurance policy is the maximum amount the policy will pay out in case of a claim. All GAPInsurance123 policies from August 2023 have no claim limit on vehicles purchased up to £75,000 on VRI and RTI GAP and a £75k maximum claim limit for cars purchased between £75k and £100k.

 

Please note: GAP Insurance products from GAPInsurance123 are not officially endorsed by MINI and are unavailable from MINI showrooms. Any GAPInsurance123 branded product can only be purchased from the official GAPInsurance123.co.uk website.

 

Published 6/8/23, written by Mark Griffiths