Protection terms
How the protection terms are set
The arrangement depends on a small number of commercial and contractual choices: protection amount, coverage rate, completion, seller commitment, and factual disclosure.
Protection amount
Protection amount, coverage rate, and fee
The commercial shape of the arrangement is fixed when the sale is agreed. The cap, the coverage rate, and the fee determine the financial structure from the outset.
Protection amount
The cap is selected through the protection tier.
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Protection amount
The cap is selected through the protection tier.
- The available protection amounts are €600, €1,200, and €2,400.
- The selected amount caps the total reimbursement across all accepted or determined claims.
- The cap matters even where several receipts are submitted.
Coverage rate
The reimbursement percentage is applied to each eligible amount, not only at the end.
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Coverage rate
The reimbursement percentage is applied to each eligible amount, not only at the end.
- The coverage rate is selected at 40% or 70%.
- Each accepted or determined eligible amount is reduced by the selected percentage.
- The total still remains subject to the cap.
Completion
When the agreement becomes operative
The arrangement only takes effect once the underlying sale completes. Until then, it remains conditional and does not impose substantive obligations.
Go next
The deeper treatment of operative effect, warranties, and funding commitment.
What happens if a finalised amount is not paid when due.
Completion
Completion occurs when the Purchase Price is paid in full.
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Completion
Completion occurs when the Purchase Price is paid in full.
- The sale completes when the buyer pays the full Purchase Price to the seller.
- Only then does the arrangement become binding.
- If completion never occurs, the arrangement lapses automatically.
Seller commitment
Once completion happens, the seller funding commitment begins immediately.
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Seller commitment
Once completion happens, the seller funding commitment begins immediately.
- The seller must keep funds equal to the protection amount available.
- That commitment runs for the protection window and the further period set by the agreement.
- The seller must remain able to satisfy payment obligations under the arrangement.
Disclosure
Seller disclosures and the factual record of condition
Known condition issues should be handled through factual disclosure and proper pricing. The disclosure document records that information but does not rewrite the contract.
What belongs in the disclosure document
It should record factual statements about the vehicle's known condition.
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What belongs in the disclosure document
It should record factual statements about the vehicle's known condition.
- Known defects should be described plainly.
- The document should reflect the seller's factual knowledge.
- It should support price discussion and agreed exclusions where appropriate.
What the document cannot do
It is incorporated for factual disclosure only.
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What the document cannot do
It is incorporated for factual disclosure only.
- It cannot vary the legal terms of the arrangement.
- It cannot introduce new rights or obligations.
- Any ambiguity is interpreted narrowly and in favour of the buyer.
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