What is Citroën Financial Shortfall Insurance?

Vehicles which are stolen or written-off often need the owner to make a ‘total loss’ insurance claim, which is a standard car insurance policy and will not necessarily cover the full cost of your car at the price of purchase. Motor insurance simply pays you the car’s current market value, and because cars depreciate from the time of sale, this will not only mean you are unable to buy a like-for-like replacement but you could be out of pocket by a considerable amount. If you took out a finance agreement when you purchased your new car, it will also mean that the insurance is less than the amount owed on this agreement, leaving you with outstanding money to pay.

One way to secure yourself is to take out GAP Insurance. GAP, also known as Financial Shortfall Insurance, covers the gap between the market value of your new car at the time it was stolen or written-off and either the original cost of the vehicle or outstanding balance of your finance will be covered when you have GAP Insurance. This allows you to purchase a replacement new car at a similar value to the one you originally purchased without needing to worry about any outstanding credit from the original purchase.

How long does a Financial Shortfall Policy last?

Our Citroen Financial Shortfall product has a fixed term of 36 months

What if the term of my finance agreement is longer than 36 months?

If you have bought our Financial Shortfall Insurance and have a finance agreement with a term between 37 & 60 months, we will give you additional cover free of charge to cover this period. This additional coverage will cover the difference between the market value of your vehicle at the time of loss and the outstanding balance on your finance agreement.

What does Market Value mean?

Market Value is a settlement amount we will expect your motor insurer to offer you in the event of a total loss. The market value will generally be determined using trade valuation publications such as Glass’s Guide. It is a condition of our Financial Shortfall policy that you do not accept your motor insurer’s settlement before speaking to our claims team as this ensures an agreement on valuation can be reached. We will seek your permission to negotiate with your motor insurer on your behalf if we believe their offer to be below the vehicle’s true market value. Dealer fitted accessories, any arrears or outstanding finance carried over from a previous loan will be excluded from any claim settlement.

Is the excess on my Motor Insurance Policy covered?

In the event of a claim, your motor insurance excess (up to £250) will be included in your settlement. If your motor insurer’s settlement means there is no shortfall to claim, you can still claim your motor insurance excess up to £250.

What level of Motor Insurance do I need to be eligible to purchase financial shortfall insurance?

It is a requirement of the Financial Shortfall Insurance Policy that you have fully comprehensive motor insurance.

Can I transfer my policy if my motor insurer provides me with a new vehicle?

Should you receive a replacement vehicle following a total loss, you can transfer the balance of your policy to your new vehicle and also claim your motor insurance excess up to a maximum of £250.

If my vehicle is involved in an accident and I am not the driver, can I make a claim under my Financial Shortfall Insurance?

Yes, provided the person driving the car at the time is covered under your comprehensive motor insurance policy.

Will I get a refund if I cancel my policy?

You have 14 days to review your policy, during which time you can cancel and receive a full refund, providing no claim has been made. After this time you can cancel your policy and you will be refunded on a pro-rata basis providing no claim has been made. An administration fee of £48 will be deducted from your pro-rata refund. For example, if your policy costs £449 and you cancel after 18 months you will receive half your premium back less £48. In this example you will receive a refund of £176.50.

If you cancel your policy during the additional free cover period, i.e. in months 37 to 60, no refund will be due.

In the event of a claim, how is payment made?

If your claim is approved, we will make the payment direct to your bank account or to your finance company where applicable. All claims are subject to fraud screening. Should we believe your claim to be fraudulent or if you have failed to tell us something important during the application process we may reject your claim, even if your vehicle has been declared a total loss by your motor insurer.

How do I apply for Financial Shortfall Insurance?

Contact us at Thames Motor Group where one of our sales advisors can answer any other questions you may have and can register your policy for you. Your policy documents will then be sent to you in the post.


Call Thames Citroen for more info, or to apply, on 01892 256065