GAP insurance question

owen lcr

orvil
Oct 10, 2006
1,179
0
montrose, scotland
do you guys know anything about GAP insurance, i am picking my car up on saturday but the salesman phoned me on friday asking if i would like to take out the gap insurance thingy... i asked him to explain it and he told me that if i pay 20K for my car this year, and if i were to have an accident in 2 years time and say my car was only worth 15K the GAP insurance would make the total up to 20K again thus giving you what you payed for your car when you bought... hope this makes sense,

i dont really beleive this because everyone would be crashing there cars after 2 years..

cheers, owen
 

Snarks

Full Member
May 18, 2002
202
0
Lancashire
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I've never bothered with it myself. Some insurance companies such as Direct Line will give you a new car in the first 12 months of ownership. Check your policy details.
 

owen lcr

orvil
Oct 10, 2006
1,179
0
montrose, scotland
well it is actually seperate from my insurace that covers my car... if i crasshed the car my insurance would give me 15K and the GAP insurance would give me 5K to give me the full price of 20K... i think this must be wrong, i cant check the details as i havnt got the cover yet.
 

P0LKR

Full Member
Nov 13, 2005
929
2
Newton Mortgage, Glasgow
There are different types of gap insurance.

The first one is finance gap (most popular). If your car is stolen or written off you will get any difference between the finance owed and the pay out from your insurance company. As insurance companies always do you over there could very well be a shortage depnding on your level of finance on the car.

The second type is invoice gap. Basically, you will be paid the diff between the insurance pay out and the full invoice value of the car.

Tip.

You will find a better deal on the net.


I got mine at nearly half the dealer price from norwich union on my last car.
 

Gib83

Neeow!!
Mar 3, 2007
334
0
Sheffield
P0LKR is spot on. Basically if you pay cash for the car and say you pay £20k for it. If within the term of you gap policy your car is written off and your insurance company only payout £14k, your gap policy will pay you the other £6k. Its sometimes referred to as return to invoice insurance too.
Wow, workin for an insurance company has its benefits!!
 

Snarks

Full Member
May 18, 2002
202
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Lancashire
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Yes, it is a separate thing. What I meant was that my insurance policy is effectively giving me 12 months GAP cover by replacing my vehicle with a new one and I just take a chance that nothing will happen for the 2nd and 3rd years.

This is what my policy says.
4 New car cover
If your car is less than one year old and you are the first and only owner, we will replace it with one of the same make and model if it has:
• been stolen and not found; or
• suffered damage covered by the policy and we declare it a write-off.
 

Cupra R

Active Member
Dec 5, 2001
2,217
4
UK.
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My dealer threw this Gap insurance in for me mate, he said it's value was £349, but where mine differs is that it is deferred for one year (as has been said, my insurance CO will replace the car within the first 12 months). So after the first year, the Gap Insurance starts, so I effectively get 4 four years cover return to invoice price.

See what they may do for you.

Sure mine's with the AA.
 

m0rk

sarcasm comes free
Staff member
May 19, 2001
27,787
33
Clanfield, UK
worth shopping about, I just googled RTI insurance, clicked one of the sponsored links & got this (new car, 0 miles)

Policy Details
Total one off premium: £189.00
Length of cover: 3 years
Claims limit: £20,000.00
 

P0LKR

Full Member
Nov 13, 2005
929
2
Newton Mortgage, Glasgow
There are different types of gap insurance.

The first one is finance gap (most popular). If your car is stolen or written off you will get any difference between the finance owed and the pay out from your insurance company. As insurance companies always do you over there could very well be a shortage depnding on your level of finance on the car.

The second type is invoice gap. Basically, you will be paid the diff between the insurance pay out and the full invoice value of the car.

Tip.

You will find a better deal on the net.


I got mine at nearly half the dealer price from norwich union on my last car.


Agree with Mork
 

daniel_owen_uk

Full Member
Aug 24, 2006
270
0
Chesterfield
Same with payment protection, any lender/insurance company screw you over big time, and most people don't realise you can get it MUCH cheaper from a 3rd party.
 

owen lcr

orvil
Oct 10, 2006
1,179
0
montrose, scotland
well i am just going to phone up the salesman and tell him to cancel the gap insurance as i can get the it for 4 years for £300 on the internet opposed to £350 for 3 years from the stealers... any of you guys found a good site on google as the cheapest i have found is £300 for 4 years???
 

andy123

Guest
I used Surf and Protect, dealer quoted £300, they didi it for about £150 - also cover used cars.
 

jtmac

Active Member
Do you have 14 or 28 days cancellation rights on GAP from the dealer? Because they charge you twice as much as you can get elsewhere they make a nice commision on it.

So, say you'll have it if they throw in Mats, flaps, fuel, any other shiny bits of chrome you fancy. If they say yes to this then go for it and then when you have the car you spend an hour in some call waiting system cancelling the GAP policy and getting a refund, but you got all the lovely shiny bits for free!

Haven't done this myself, I just got the dealer to match the online quote.

It apparently works with rip-off extended warranties too. (i.e. salesman give you big discount on a TV or washing machine onlyif you take rip-off warranty, but you have the right to cancell and get a refund if you're quick about it)
 

MikeShaw100

Leon FR - White Lightning
Aug 7, 2007
297
0
Wakefield
One point worth reinforcing.

Say you purchase a car from the dealer for £16,250, over 5 years, with a total payable of around £18,500 including interest. Gap Insurance covers the difference between the cars actual value (at the time of the incident) and what you still owe on finance, including the interest!

This was explained to me during my recent purchase and think that the £300 is money well spent and should include year one, where your new car is likely to depreciate most.

MikeS
57 Leon FR, Chrono Yellow, 18", BT, Chrome Trim, Mats, Muddys.
 

LWCARAB

Active Member
Aug 21, 2007
215
0
Essex
Hi,

Same thing here, picking up the car on saturday and the garage are desperately to sell me it (good commission I guess). I've been finding out a lot about it and it seems it is worth is but Seat's is very expensive, Hitachi Capital do it for £130, that covers you for 3 years on an invoice up to 20k for a 10k payout.
 
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