Gap Insurance

Every vehicle undergoes the depreciation process. It is a normal economic event touching every sold and used good; a fact of life. Recently, however, one sort of insurance has grown quite popular in the insurance market. It is often being referred to as RTI (standing for Return to Invoice) insurance or shortfall cover. What is the difference and what makes it so special? It can protect the driver against depreciation because it goes back to the car’s invoice value. As in case of all other gap insurance policies, it will provide protection against any financial loss which may happen or incur as a consequence of the vehicle being a write off due to an accident, fire or theft.

Follow up:

RTI gap insurance will pay the difference between the insuring company’s payout and the car dealer invoice, which makes the difference when compared to other GAP policies covering only any outstanding finance on the insured car. The requirements for this kind of gap insurance are not that difficult to meet. The vehicle can be up to seven years old and the coverage is for a period of one to four years. It is applicable both to any new or used car bought at a dealer and to any existing vehicles. Premiums are not too expensive and they can even depend on the insured vehicle’s mileage. As some may say, an RTI GAP insurance package is more to help the driver than to insure.