GAP insurance pondering

GAP insurance pondering

Author
Discussion

funkyrobot

18,789 posts

227 months

Friday 21st October 2016
quotequote all
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! eek

They also added alloy wheel insurance at over £300. eek

I didn't buy the car in the end.

Dave Hedgehog

14,541 posts

203 months

Friday 21st October 2016
quotequote all
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! eek

They also added alloy wheel insurance at over £300. eek

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) biggrin

funkyrobot

18,789 posts

227 months

Friday 21st October 2016
quotequote all
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! eek

They also added alloy wheel insurance at over £300. eek

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) biggrin
I'm annoyed that they didn't include tyre insurance and paint protection. smile

pork911

7,086 posts

182 months

Friday 21st October 2016
quotequote all
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.
I'm a little lost, could you possibly talk me through that one, how would the third partybe liable for overcompensating you?

TwigtheWonderkid

43,246 posts

149 months

Friday 21st October 2016
quotequote all
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.
I'm a little lost, could you possibly talk me through that one, how would the third partybe liable for overcompensating you?
I never said they were. If you have a new for old policy, and you have a non fault claim, you don't have to claim off the tp. You can still claim off your own policy, and take advantage of your new for old clause.

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.

JQ

5,691 posts

178 months

Friday 21st October 2016
quotequote all
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.
I'm a little lost, could you possibly talk me through that one, how would the third partybe liable for overcompensating you?
I never said they were. If you have a new for old policy, and you have a non fault claim, you don't have to claim off the tp. You can still claim off your own policy, and take advantage of your new for old clause.

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.
If you went down that route and they weren't able to fully recover the outlay, would the insured then have a fault claim against them?

pork911

7,086 posts

182 months

Friday 21st October 2016
quotequote all
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.
I'm a little lost, could you possibly talk me through that one, how would the third partybe liable for overcompensating you?
I never said they were. If you have a new for old policy, and you have a non fault claim, you don't have to claim off the tp. You can still claim off your own policy, and take advantage of your new for old clause.

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.
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?


speedking31

3,543 posts

135 months

Friday 21st October 2016
quotequote all
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

43,246 posts

149 months

Friday 21st October 2016
quotequote all
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.
I'm a little lost, could you possibly talk me through that one, how would the third partybe liable for overcompensating you?
I never said they were. If you have a new for old policy, and you have a non fault claim, you don't have to claim off the tp. You can still claim off your own policy, and take advantage of your new for old clause.

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.
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?
Maybe they won't. Who cares. You've got a new car for your old one as per your policy. Anything else is between insurers.

nottyash

4,670 posts

194 months

Friday 21st October 2016
quotequote all
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.
Its not rocket science.

Sheepshanks

32,519 posts

118 months

Friday 21st October 2016
quotequote all
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! eek

They also added alloy wheel insurance at over £300. eek

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) biggrin
I had that in a VW dealer - PCP monthly was £100/mth more than I expected. Wouldn't detail the quote and said it wasn't possible to print it out or tell the me the APR. I walked out.

saaby93

32,038 posts

177 months

Friday 21st October 2016
quotequote all
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?


TwigtheWonderkid

43,246 posts

149 months

Friday 21st October 2016
quotequote all
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.
Its not rocket science.
Firstly, that's not what a knock for knock is, and secondly, knock for knock agreements died out about 25 years ago.



pork911

7,086 posts

182 months

Friday 21st October 2016
quotequote all
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.
I'm a little lost, could you possibly talk me through that one, how would the third partybe liable for overcompensating you?
I never said they were. If you have a new for old policy, and you have a non fault claim, you don't have to claim off the tp. You can still claim off your own policy, and take advantage of your new for old clause.

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.
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?
Maybe they won't. Who cares. You've got a new car for your old one as per your policy. Anything else is between insurers.
Whatever insurance you may have and whoever the claim is first presented to I'm really struggling to see the third party's liability for any difference between old and new.

TwigtheWonderkid

43,246 posts

149 months

Friday 21st October 2016
quotequote all
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.
I'm a little lost, could you possibly talk me through that one, how would the third partybe liable for overcompensating you?
I never said they were. If you have a new for old policy, and you have a non fault claim, you don't have to claim off the tp. You can still claim off your own policy, and take advantage of your new for old clause.

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.
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?
Maybe they won't. Who cares. You've got a new car for your old one as per your policy. Anything else is between insurers.
Whatever insurance you may have and whoever the claim is first presented to I'm really struggling to see the third party's liability for any difference between old and new.
banghead

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

10,640 posts

201 months

Friday 21st October 2016
quotequote all
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.
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

pork911

7,086 posts

182 months

Friday 21st October 2016
quotequote all
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.
I'm a little lost, could you possibly talk me through that one, how would the third partybe liable for overcompensating you?
I never said they were. If you have a new for old policy, and you have a non fault claim, you don't have to claim off the tp. You can still claim off your own policy, and take advantage of your new for old clause.

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.
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?
Maybe they won't. Who cares. You've got a new car for your old one as per your policy. Anything else is between insurers.
Whatever insurance you may have and whoever the claim is first presented to I'm really struggling to see the third party's liability for any difference between old and new.
banghead

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.
Thanks for clarifying you were wrong.


TwigtheWonderkid

43,246 posts

149 months

Friday 21st October 2016
quotequote all
pork911 said:
Thanks for clarifying you were wrong.
confused

Jammed08

8 posts

89 months

Friday 21st October 2016
quotequote all
I think it is a small price to pay for the potential financial benefit if I need to claim.I also got a policy to cover my diamond cut wheels,£169 for three years with a total of up to twelve claims over the period.

silentbrown

8,792 posts

115 months

Friday 21st October 2016
quotequote all
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.