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Author: Subject: GAP INSURANCE
Mr Whippy

posted on 8/1/19 at 12:31 PM Reply With Quote
GAP INSURANCE

Hi,

If you asked me a month ago what GAP insurance was I'd have had no idea and assumed it was some dental plan...

I've been on here for quite a while and yet never heard of this being mentioned or maybe was just not paying enough attention.

So why do I bring it up? well I'll give you an example... A couple of years ago I bought the wife a very nice £5500 Volvo on finance, very low miles super condition, a year later she rams the house with it and writes it off... I get offered just over £3000 for it so that's me £2500 down.

The GAP insurance is a separate policy (not much extra) that would pay up the missing £2500 to take the total back up to the value of the original finance I took out so I would have not been out of pocket at all.

Hindsight is a wonderful thing....I only found out about it when buying this new car and have taken it as it was a no brainer.

Maybe this will help someone not make the same mistake.




[Edited on 8/1/19 by Mr Whippy]

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loggyboy

posted on 8/1/19 at 01:39 PM Reply With Quote
This tickles me as this came up at a family dinner over Christmas and someone was under the impression it covered your insurance excess. lol






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CosKev3

posted on 8/1/19 at 03:11 PM Reply With Quote
I thought GAP insurance just covered the GAP between the vehicles value when written off upto what you owe on the car?
So if it gets written off and you owe more than the insurance will pay out on the vehicle you are not left with debt/negative equity?

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steve m

posted on 8/1/19 at 06:37 PM Reply With Quote
My Mother has paid for gap insurance on her new Corsa, despite me telling her that is a total waste of money (£350ish)
As for her, who does a max of 2000 miles a year, and her last car a pug 307 at 22 years old, and had 41000 on the clock!

GAP insurance will only pay out the difference in retail and selling price, in the event of an accident, as in a write off, and on her policy, the car HAS to be serviced etc by Vauxhall, to keep the car in tip top condition, to retain its value

It does nothing when Mum sells her car in 10 years time at 89, for less than the market value, because no one wants to by a 2018 corsa anymore, as we will all be flying around in hybrid aircraft

Its just another money making scam, that the insurance companies are selling, that will never actually pay out, as the company will of gone bust, or have some loop hole in the policy


I had a policy given to me when we bought our new lounge suit, for us to close the deal, and the policy included wear and tear within 5 years of the sale,

So 4 plus years down the line, and we have wear and tear, so I claim, guess what?

My claim was refused because we had not had our settee suit cleaned and serviced every year since purchasing it, something that I had never read in the policy !!

The bastards have you by the short and curlies every time





Thats was probably spelt wrong, or had some grammer, that the "grammer police have to have a moan at




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coyoteboy

posted on 8/1/19 at 08:02 PM Reply With Quote
I had to fight for the valuation of my first car. One call, they paid the full value without asking again.

These days I go with agreed value policies. However I'm not sure they're worth it, much like all other insurance.





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perksy

posted on 8/1/19 at 10:09 PM Reply With Quote
quote:
Originally posted by steve m
My Mother has paid for gap insurance on her new Corsa, despite me telling her that is a total waste of money (£350ish)
As for her, who does a max of 2000 miles a year, and her last car a pug 307 at 22 years old, and had 41000 on the clock!

e




£350 is excessive, if she'd shopped around she could have got it cheaper than that
Main dealers love to sell GAP insurance as the commission is good

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b14wrc

posted on 9/1/19 at 12:26 PM Reply With Quote
I took it out on my GT86, mine was for 5 years and covered me back to the invoice price, therefore, provides the difference from what you paid and what the insurance company pays out.

Depends on how new the car is, what it is and its value and if your comfortable losing the depreciation.

I took it out as I keep my cars a long time and as it was on finance initially, would have been rather annoyed if it was written off and I still had to pay the finance.

We took GAP on our 2 year old Landrover Discovery sport in August, although that will have taken a good hit on the deprecation already, in 3 years time we would get a lot less for it in the event of a claim, so for £300 I thought it worth protecting our asset. A small cost against the overall cost of the Vehicle.

At the end of the day I wouldn't want to be offered Market value and have to find the difference to replace for a like or better vehicle.

Rob






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owelly

posted on 9/1/19 at 12:43 PM Reply With Quote
All the GAP policies I've seen agree to payout the difference between an insurance settlement and the amount still outstanding on finance. Even one that claimed to settle the difference between the purchase price and settlement figure had a side note stating there would be a deduction for the age and wear and tear of the vehicle....





http://www.ppcmag.co.uk

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Mr Whippy

posted on 9/1/19 at 12:52 PM Reply With Quote
Well I'm only posting this so people know GAP insurance even exists. Whether anyone takes further insurance to protect their financial situation like I didn't as I explained with the Volvo is purely up to them. For the Up! it costs just £5 a month extra, and is covered for 4 years, which considering the insurance is much cheaper than the old Fiesta anyway it just makes total sense.

I didn't go with the GAP insurance the dealer was pushing, I went home and did my own research and got a better deal. Having read the small print (I read contracts all the time as part of my job) it's no scam it's just an insurance policy. They ask for a copy of the dealer invoice and will cover the difference between that and the insurance payout, that's it.

As for servicing by the dealer, well that is a requirement anyway with the VW finance and tbh I'm quite happy to let them do it to keep up it's service history, although I will be changing the engine oil a bit more frequently than they recommend

Btw the wife is not allowed to drive the new car...

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YOUSAY54

posted on 9/1/19 at 03:29 PM Reply With Quote
gap insurance

Nothing to do with finance, it covers what the insurance company offers you the GAP pays the difference for you to buy like for like, when I bought my new car 2014 payed cash and had GAP insurance don't want to use it but it is there, trust me I am not a doctor or a welder
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Mr Whippy

posted on 10/1/19 at 07:13 AM Reply With Quote
quote:
Originally posted by YOUSAY54
Nothing to do with finance, it covers what the insurance company offers you the GAP pays the difference for you to buy like for like, when I bought my new car 2014 payed cash and had GAP insurance don't want to use it but it is there, trust me I am not a doctor or a welder


I think you missed the point

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coyoteboy

posted on 10/1/19 at 10:47 AM Reply With Quote
"Gap insurance covers the difference between your insurance offer at the point your car is ‘written off’ or declared a total loss and the value of your car when you bought it, any outstanding finance payments plus – for some enhanced policies - any additional costs needed to get you back on the road with a car to the same specification as when it was purchased."





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Mr Whippy

posted on 10/1/19 at 12:54 PM Reply With Quote
so the lesson here is if your going to crash make sure it is a really big one and you'll get a new car
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