A new and improved asset protection product has been launched by Volkswagen Financial Services (UK) Limited for its Volkswagen, Audi, SEAT, Volkswagen Commercial Vehicles and Skoda retailer networks.

The new insurance scheme pays out if a vehicle is written off because of accidental damage, fire or theft, and replaces the company’s former GAP product. Business Development Director David Maloney said that the new product has been improved in several ways, and has been warmly welcomed by retailers. “We carried out a lot of research amongst retailers to find out what they and our customers really want, and have responded to their suggestions,” he added.

The changes include introducing fairer claim limits, increasing the sale period for retailers to 90 days and making cover instant at the time of purchase. Basic asset protection will cover the difference between what the comprehensive motor insurance policy pays out and what is owed on the finance agreement up to £10,000.

Asset protection plus covers the difference between how much the comprehensive motor insurance pays out, and what the customer paid for the vehicle. Mr Maloney explained that changes have been made to asset protection plus claim limits: “The new scheme is fairer for purchasers of all priced vehicles and we are confident that we have a system in place which will fully cover any shortfall in insurance payments whatever the original price of the vehicle.”

The new scheme allows higher claim limits of up to £25,000 for vehicles priced over £30,000, which is an increase of £10,000 on the previous GAP product. It has also reduced the new claim limit to £7,500 down from £15,000 for vehicles priced up to £10,000, and to £10,000 for vehicles costing £10,000-£20,000. “This means the customer doesn’t resent paying for more cover than he or she actually needs,” Mr Maloney added.

Another new benefit is that the scheme can be set up quickly on line at the time of sale, giving the customer instant cover from the minute they leave the showroom.