Good GAP insurance recommendations?

[Faxo]

Needing it for my leased Golf R and also my parents new car bought in PCP

Plenty of companies to choose from, I'm after personal recommendations please

Cheers

[smashie]

I'm with ALA (www.ala.co.uk). Heard good things when I was looking around a few years ago. Pricing is good. Can't comment on anything else about them though as I have not had to use them.

[Mr Tidy]

Bought it once but next time realised depreciation is a fact of life if you buy a car - should have wrapped the first one round a tree!!

[Claudia Skies]

Faxo said:

Needing it....

????????

[-Z-]

Claudia Skies said:

Faxo said:

Needing it....

????????

For a lease, if the car is written off you technically owe the insurance payout AND every subsequent monthly payment also.

[Shaw Tarse]

ALA http://www.pistonheads.com/gassing/topic.asp?h=0&a...

[valiant]

I've used ALA in the past and they were pretty reasonable although I never had to claim so can't comment on that front.

There's a sticky thread up above from ALA giving a discount code so a few pounds can be saved there.

[Mr Tidy]

-Z- said:

Claudia Skies said:

Faxo said:

Needing it....

????????

For a lease, if the car is written off you technically owe the insurance payout AND every subsequent monthly payment also.

Well just buy it then - if you can't you probably can't afford it anyway.....

[Faxo]

Haha, no icant afford the £30k list price - I can however afford uber small monthly payments

The problem with small monthly payments is negative equity, so I'm just using my head (again, 1st time was not paying £30k cash for the car), and covering myself

[TwigtheWonderkid]

-Z- said:

For a lease, if the car is written off you technically owe the insurance payout AND every subsequent monthly payment also.

Eh? Can you explain this further?

[Calza]

Insurance only pay out the value of the car at the time of the accident. For a lease you're liable for everything.

So this covers the GAP.

[TwigtheWonderkid]

Calza said:

Insurance only pay out the value of the car at the time of the accident. For a lease you're liable for everything.

So this covers the GAP.

My firm leases loads of cars. Occasionally one gets written off. Our insurers contact the lease firm and agree a settlement based on market value. That's the end of the story. The lease is over and we have nothing else to pay.

If we buy a car on finance, then it's possible the market value may be less at a given time than the amount owing on the loan. GAP cover can be useful then.

[Claudia Skies]

GAP = "depreciation insurance". But it only pays out if you lose the car. Seems an illogical purchase to me, because the car depreciates whether you keep it or lose it.

[berlintaxi]

Mr Tidy said:

-Z- said:

Claudia Skies said:

Faxo said:

Needing it....

????????

For a lease, if the car is written off you technically owe the insurance payout AND every subsequent monthly payment also.

Well just buy it then - if you can't you probably can't afford it anyway.....

Early contender for tt of the month post, well done.

[TwigtheWonderkid]

Claudia Skies said:

GAP = "depreciation insurance". But it only pays out if you lose the car. Seems an illogical purchase to me, because the car depreciates whether you keep it or lose it.

True, but you might be planning to absorb the depreciation over many years. Depreciation isn't linear, you get more of it in the early days/years after purchase. It insurers you against having to face the depreciation earlier than you wanted to.

[Chicane-UK]

I went with ALA. I used them based on countless recommendations on here. Their policy price (approx £100) smashed the one offered by the car dealer I bought from (nearer £400!) and with so many positive reviews backing them up I was fairly happy. Hopefully they pay up in the event I ever need to call on them!

[HJMS123]

Would I be right in thinking that GAP insurance pays for my outstanding monthly rentals on the lease should the car be a total loss? If my outstanding payments equal 4k do I only need the minimal gap cover which is 5k?

[TwigtheWonderkid]

HJMS123 said:

Would I be right in thinking that GAP insurance pays for my outstanding monthly rentals on the lease should the car be a total loss? If my outstanding payments equal 4k do I only need the minimal gap cover which is 5k?

I don't think so. If it's a standard lease, your insurers would pay the lease firm the market value and that would end the contract. You don't need GAP cover at all.

[HJMS123]

TwigtheWonderkid said:

I don't think so. If it's a standard lease, your insurers would pay the lease firm the market value and that would end the contract. You don't need GAP cover at all.

It's a standard lease via G2L for a fiesta ST. I'm seriously struggling to get my head around GAP ..... Some people say that it's settled and that's it. Some are saying you owe the monthly repayments even though your insurer has settled the vehicle value.

[TwigtheWonderkid]

HJMS123 said:

Some are saying you owe the monthly repayments even though your insurer has settled the vehicle value.

If that were the case, you're leasing company would be celebrating every time one of their cars got written off. Not only are they getting your monthly payments, they can use the write off money to buy a replacement car and lease it to someone else and get their monthly payments.

I don't think so!