GAP insurance pondering
Discussion
funkyrobot said:
I will say one thing, make sure you shop around for GAP.
Had a quote for a new car from a Volvo dealer last weekend. They stuck the GAP on the price list at just shy of £600!
They also added alloy wheel insurance at over £300.
I didn't buy the car in the end.
standard dealer stuff now, Audi's package of extra insurances came to over 3k on the last one i bought (which i did not take out) Had a quote for a new car from a Volvo dealer last weekend. They stuck the GAP on the price list at just shy of £600!
They also added alloy wheel insurance at over £300.
I didn't buy the car in the end.
Dave Hedgehog said:
funkyrobot said:
I will say one thing, make sure you shop around for GAP.
Had a quote for a new car from a Volvo dealer last weekend. They stuck the GAP on the price list at just shy of £600!
They also added alloy wheel insurance at over £300.
I didn't buy the car in the end.
standard dealer stuff now, Audi's package of extra insurances came to over 3k on the last one i bought (which i did not take out) Had a quote for a new car from a Volvo dealer last weekend. They stuck the GAP on the price list at just shy of £600!
They also added alloy wheel insurance at over £300.
I didn't buy the car in the end.
TwigtheWonderkid said:
JQ said:
That's only if you claim off your own insurance policy. If your car being written off is the fault of a third party their insurer will only pay you market value.
Even if it's the tp's fault you can still claim off your own policy and get the new for old option. Then your insurer can argue with the tp about recovering their outlay. If you have comp cover, you can claim directly off tp or not, whatever suits you best. pork911 said:
TwigtheWonderkid said:
JQ said:
That's only if you claim off your own insurance policy. If your car being written off is the fault of a third party their insurer will only pay you market value.
Even if it's the tp's fault you can still claim off your own policy and get the new for old option. Then your insurer can argue with the tp about recovering their outlay. If you have comp cover, you can claim directly off tp or not, whatever suits you best. Once your own insurers have bought your new car, they will then contact the tp insurance for recovery of their outlay. Then that's no longer your problem. No doubt your insurer buy lots of cars, so might have secured a good discount. So they may well be able to recover their outlay in full.
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
JQ said:
That's only if you claim off your own insurance policy. If your car being written off is the fault of a third party their insurer will only pay you market value.
Even if it's the tp's fault you can still claim off your own policy and get the new for old option. Then your insurer can argue with the tp about recovering their outlay. If you have comp cover, you can claim directly off tp or not, whatever suits you best. Once your own insurers have bought your new car, they will then contact the tp insurance for recovery of their outlay. Then that's no longer your problem. No doubt your insurer buy lots of cars, so might have secured a good discount. So they may well be able to recover their outlay in full.
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
JQ said:
That's only if you claim off your own insurance policy. If your car being written off is the fault of a third party their insurer will only pay you market value.
Even if it's the tp's fault you can still claim off your own policy and get the new for old option. Then your insurer can argue with the tp about recovering their outlay. If you have comp cover, you can claim directly off tp or not, whatever suits you best. Once your own insurers have bought your new car, they will then contact the tp insurance for recovery of their outlay. Then that's no longer your problem. No doubt your insurer buy lots of cars, so might have secured a good discount. So they may well be able to recover their outlay in full.
On what basis is the third party who hit your old car liable to pay the extra for a new car?
liner33 said:
As said for what it costs its a no brainer imo, I went with ALA for my recent purchase of a 4yr old used car, I paid for it with cash but cant afford to lose say £5k the difference from dealer retail and insurance settlement.
But you are losing more than the £5k, just in little chunks rather than in one go.pork911 said:
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
JQ said:
That's only if you claim off your own insurance policy. If your car being written off is the fault of a third party their insurer will only pay you market value.
Even if it's the tp's fault you can still claim off your own policy and get the new for old option. Then your insurer can argue with the tp about recovering their outlay. If you have comp cover, you can claim directly off tp or not, whatever suits you best. Once your own insurers have bought your new car, they will then contact the tp insurance for recovery of their outlay. Then that's no longer your problem. No doubt your insurer buy lots of cars, so might have secured a good discount. So they may well be able to recover their outlay in full.
On what basis is the third party who hit your old car liable to pay the extra for a new car?
pork911 said:
Sorry I'm still a little lost.
On what basis is the third party who hit your old car liable to pay the extra for a new car?
Its called knock for knock. You claim off your policy, and then they sort it out with the other insurer. After its decided its not your fault you wont loose your no claims bonus.On what basis is the third party who hit your old car liable to pay the extra for a new car?
Its not rocket science.
Dave Hedgehog said:
funkyrobot said:
I will say one thing, make sure you shop around for GAP.
Had a quote for a new car from a Volvo dealer last weekend. They stuck the GAP on the price list at just shy of £600!
They also added alloy wheel insurance at over £300.
I didn't buy the car in the end.
standard dealer stuff now, Audi's package of extra insurances came to over 3k on the last one i bought (which i did not take out) Had a quote for a new car from a Volvo dealer last weekend. They stuck the GAP on the price list at just shy of £600!
They also added alloy wheel insurance at over £300.
I didn't buy the car in the end.
93DW said:
A case that sticks in my mind is a customer who bought a car from me through sub-prime finance (around 19% flat if memory serves) and 18 months in to it he was t-boned. Insurance company valued the car at £6000 and he still owed the finance company £8500. GAP paid off his outstanding finance straight away so he didn't have to find £2500 to pay off a smashed up car! As someone in the trade GAP is something I always recommend on cars up to 2yrs old
Are you sure that's not the insurance co undervaluing the car?They have to give him enough to put him back in the position he was in - how much was a replacement of same type and age?
nottyash said:
pork911 said:
Sorry I'm still a little lost.
On what basis is the third party who hit your old car liable to pay the extra for a new car?
Its called knock for knock. You claim off your policy, and then they sort it out with the other insurer. After its decided its not your fault you wont loose your no claims bonus.On what basis is the third party who hit your old car liable to pay the extra for a new car?
Its not rocket science.
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
JQ said:
That's only if you claim off your own insurance policy. If your car being written off is the fault of a third party their insurer will only pay you market value.
Even if it's the tp's fault you can still claim off your own policy and get the new for old option. Then your insurer can argue with the tp about recovering their outlay. If you have comp cover, you can claim directly off tp or not, whatever suits you best. Once your own insurers have bought your new car, they will then contact the tp insurance for recovery of their outlay. Then that's no longer your problem. No doubt your insurer buy lots of cars, so might have secured a good discount. So they may well be able to recover their outlay in full.
On what basis is the third party who hit your old car liable to pay the extra for a new car?
pork911 said:
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
JQ said:
That's only if you claim off your own insurance policy. If your car being written off is the fault of a third party their insurer will only pay you market value.
Even if it's the tp's fault you can still claim off your own policy and get the new for old option. Then your insurer can argue with the tp about recovering their outlay. If you have comp cover, you can claim directly off tp or not, whatever suits you best. Once your own insurers have bought your new car, they will then contact the tp insurance for recovery of their outlay. Then that's no longer your problem. No doubt your insurer buy lots of cars, so might have secured a good discount. So they may well be able to recover their outlay in full.
On what basis is the third party who hit your old car liable to pay the extra for a new car?
Why does it matter?
1. You have a comp policy that gives new for old replacement in year 1 if car is written off.
2. Your car is written off in year 1.
3. You claim from your policy.
4. They give you a new car.
THAT'S WHERE THE STORY ENDS FOR YOU.
However, there may be other stuff after that.
5. You insurers ask tp insurers to pay them £30K, the amount they paid buying you a new car.
6. TP insurers say no, car was only worth £25 as it was 6 months old.
7. Row between insurers.
ALL OF WHICH IS NOT YOUR PROBLEM.
speedking31 said:
liner33 said:
As said for what it costs its a no brainer imo, I went with ALA for my recent purchase of a 4yr old used car, I paid for it with cash but cant afford to lose say £5k the difference from dealer retail and insurance settlement.
But you are losing more than the £5k, just in little chunks rather than in one go.TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
pork911 said:
TwigtheWonderkid said:
JQ said:
That's only if you claim off your own insurance policy. If your car being written off is the fault of a third party their insurer will only pay you market value.
Even if it's the tp's fault you can still claim off your own policy and get the new for old option. Then your insurer can argue with the tp about recovering their outlay. If you have comp cover, you can claim directly off tp or not, whatever suits you best. Once your own insurers have bought your new car, they will then contact the tp insurance for recovery of their outlay. Then that's no longer your problem. No doubt your insurer buy lots of cars, so might have secured a good discount. So they may well be able to recover their outlay in full.
On what basis is the third party who hit your old car liable to pay the extra for a new car?
Why does it matter?
1. You have a comp policy that gives new for old replacement in year 1 if car is written off.
2. Your car is written off in year 1.
3. You claim from your policy.
4. They give you a new car.
THAT'S WHERE THE STORY ENDS FOR YOU.
However, there may be other stuff after that.
5. You insurers ask tp insurers to pay them £30K, the amount they paid buying you a new car.
6. TP insurers say no, car was only worth £25 as it was 6 months old.
7. Row between insurers.
ALL OF WHICH IS NOT YOUR PROBLEM.
liner33 said:
Hardly , I've had the car a week , if it got written off tomorrow I could be £5k down , for the sake of a few £££ I dont have that risk
Only if you overpaid £5K for the car. Insurance should pay out the retail cost of buying a car in the same condition yours was. That doesn't mean they'll pay sticker or list price, but what cars typically get sold for. If you don't get that, go to the ombudsman.Salesmen selling GAP conveniently forget to tell you this.
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