Then that is a pretty decent quote from Direct Line. They are very reasonable with prices, and to be honest, they are one of the most competitive companies I have found.
There are several types of shortfall insirance: Return to Finance; Return to invoice; Return to invoice plus inflation.
1) Return to Finance: This covers the difference between any insurance payout and the amount of finance outstanding on the car in the event of a right-off or non recoverable theft. It means you would not still be paying for a car you can't drive.
2) Return to Invoice: This covers the difference between the insurance payout and the amount you paid for the car, inclusing any options.
3) Return to Invoice plus inflation: This covers the difference between the insurance payout and the amount it would cost to buy a new equivalent car at that point in time (within the three years). It takes into account any price rises on the MINi range.
The level of cover varies and you need to check this out. Some offer to pay up to a difference of £5000, others £10000 (I went for this one). Basically, look at the current value of MINI's and try to guess depreciation after three years (I know this isn't easy in your case as the Park Lane is so new). A good way to do this is multiply by the percentage value after three years (you can find this in car magazines) and then look at the difference with what you paid.
Personally, I think £10k will be plenty.
In terms of payout, they tend to pay-up if your insurance would, but check out any small print.
It may be easier to get it from MINI, but, and this is the most important bit, don't pay mroe than £185 for it though! |