I've been looking into getting GAP Insurance for my new lease, but not sure if it is required or not, here is the wording from my hire agreement:
"In the event that the Vehicle is stolen or, in the opinion of the insurance company, damaged beyond economical repair, the Hirer will notify ARVAL immediately.
The Hirer hereby assigns to ARVAL the right to receive any monies due from the insurers. The Contract Term will terminate on receipt by ARVAL of such insurance monies or upon notification to ARVAL that the insurers have declined or refused to make any payment under the insurance policy and ARVAL will calculate the difference between the insurance proceeds received and the ARVALWritten Down Value at the date of termination of the Contract Term plus ARVAL's standard early termination administration fee plus VAT to produce a charge or credit. Any charge will be invoiced to the Hirer."
My take on this is that in the event of the vehicle being stolen or written off, the hire company will receive a settlement from the insurance company, if it's enough to cover 'their' value of the car, then I have nothing to pay, if the settlement doesn't cover 'their' value of the car, then I will be charged the difference.
What is the likelihood that the hire company's 'value' of the car will be more than what the insurance company will pay out?
"In the event that the Vehicle is stolen or, in the opinion of the insurance company, damaged beyond economical repair, the Hirer will notify ARVAL immediately.
The Hirer hereby assigns to ARVAL the right to receive any monies due from the insurers. The Contract Term will terminate on receipt by ARVAL of such insurance monies or upon notification to ARVAL that the insurers have declined or refused to make any payment under the insurance policy and ARVAL will calculate the difference between the insurance proceeds received and the ARVALWritten Down Value at the date of termination of the Contract Term plus ARVAL's standard early termination administration fee plus VAT to produce a charge or credit. Any charge will be invoiced to the Hirer."
My take on this is that in the event of the vehicle being stolen or written off, the hire company will receive a settlement from the insurance company, if it's enough to cover 'their' value of the car, then I have nothing to pay, if the settlement doesn't cover 'their' value of the car, then I will be charged the difference.
What is the likelihood that the hire company's 'value' of the car will be more than what the insurance company will pay out?