Retailers can now choose up to five levels of compensation against loss: cover levels are £6000, £12,000, £18,000, £24,000 and £30,000, rather than the previous £10,000, £20,000 and £30,000 levels. HPI says it will compensate dealers if they lose the right to sell a car because it is stolen or has finance outstanding against it.
“If a qualifying claim relates to non-acquisition of good title due to theft or outstanding finance, HPI will compensate dealers for up to 90 per cent of the trade value or meet 90 per cent of the cost of obtaining good title,” says the firm.
And if the claim is for a reduction in value - a “write-off” for example - HPI will meet the full difference between the trade value and the actual value of a car.
“Across the market, the average used car sold today retails for about £6000. But there are many retailers who specialise in vehicles of a much higher value,” says Annette Mansfield, HPI sales director. “We have started the HPI indemnity at a very economical level and added further levels so dealers only ever pay for the cover they need.”