GAP insurance pondering
Discussion
I know exactly what it is, but what I want to know is if anyone has come a cropper for not getting it?
I'm buying a new car and they have to offer it, which I declined, as regular insurance pays market value so should be able to replace if I got into a total loss situation. But has anyone (either you or someone you know) not been able to get a replacement car?
I've bought brand new cars before and have never bothered, it just made me think about it...
I'm buying a new car and they have to offer it, which I declined, as regular insurance pays market value so should be able to replace if I got into a total loss situation. But has anyone (either you or someone you know) not been able to get a replacement car?
I've bought brand new cars before and have never bothered, it just made me think about it...
roystinho said:
I know exactly what it is, but what I want to know is if anyone has come a cropper for not getting it?
1. Cars depreciate. I can't see any point trying to insure depreciation!2. However, sometimes when a car is stolen there may be more money owing on finance or whatever than the value of the car at the time it is lost. Gap insurance will usefully make good the difference under those circumstances.
IMO, any insurance which claims to put you in a better position AFTER an incident than you were in before is, basically, gambling and/or an invitation to fraud
However, I took out gap insurance on my new car last year with this lot. https://totallossgap.co.uk/
If your car's written off in the first 12 months, most insurers will replace with new anyway - but as my car was a heavily discounted 'run-out' Audi S4, replacement wasn't going to be possible. The gap insurance means - should the worst happen - I'll get a shiny B9 S4 to replace the B8 one.
Also, plenty of tales of endless haggling with insurers about what constitutes 'market value' which Gap insurance basically sidesteps.
There was someone who had a leased Golf R (surprise!) stolen. I think he came a cropper over losing the 9? 6? month 'initial payment', which *some* Gap policies can now cover.
However, I took out gap insurance on my new car last year with this lot. https://totallossgap.co.uk/
If your car's written off in the first 12 months, most insurers will replace with new anyway - but as my car was a heavily discounted 'run-out' Audi S4, replacement wasn't going to be possible. The gap insurance means - should the worst happen - I'll get a shiny B9 S4 to replace the B8 one.
Also, plenty of tales of endless haggling with insurers about what constitutes 'market value' which Gap insurance basically sidesteps.
There was someone who had a leased Golf R (surprise!) stolen. I think he came a cropper over losing the 9? 6? month 'initial payment', which *some* Gap policies can now cover.
Edited by silentbrown on Friday 19th August 13:49
Ozzie Osmond said:
1. Cars depreciate. I can't see any point trying to insure depreciation!
2. However, sometimes when a car is stolen there may be more money owing on finance or whatever than the value of the car at the time it is lost. Gap insurance will usefully make good the difference under those circumstances.
GAP insurance pays back to invoice - so in a way, you are insuring depreciation? - I've often thought this must leave it open to fraud...2. However, sometimes when a car is stolen there may be more money owing on finance or whatever than the value of the car at the time it is lost. Gap insurance will usefully make good the difference under those circumstances.
Girl at work bought a shiny new 2 series taking the excellent stock PCP deal, paint protection, GAP insurance etc.
12 months in and she was rear ended and then car written off (rear wheel was in passenger door)
As bad as the stock dealer deal was she would have been screwed without the GAP insurance
12 months in and she was rear ended and then car written off (rear wheel was in passenger door)
As bad as the stock dealer deal was she would have been screwed without the GAP insurance
SystemParanoia said:
so you're essentially insuring your insurance?
You are insuring against a difference in the value the insurance company pays you and what you have left on the finance, in the early stages when cars depreciate a lot but you have paid very little back it can be a huge amount silentbrown said:
Dave Hedgehog said:
12 months in and she was rear ended and then car written off (rear wheel was in passenger door)
Up to 12 months, standard insurance policy will normally replace with new, as long as you own the car. With PCP, you don't, of course.You never have to worry about having to pay for a car that no longer exists
If you take RTI you will actually be more ahead the older the car gets as you can get the full value (depending on the policy) of the car back from the GAP insurance, theoretically you could be looking at being 25k ahead
Edited by Dave Hedgehog on Friday 19th August 13:57
Joe.. said:
Ozzie Osmond said:
1. Cars depreciate. I can't see any point trying to insure depreciation!
2. However, sometimes when a car is stolen there may be more money owing on finance or whatever than the value of the car at the time it is lost. Gap insurance will usefully make good the difference under those circumstances.
GAP insurance pays back to invoice - so in a way, you are insuring depreciation? - I've often thought this must leave it open to fraud...2. However, sometimes when a car is stolen there may be more money owing on finance or whatever than the value of the car at the time it is lost. Gap insurance will usefully make good the difference under those circumstances.
For the sake of about £200 I would always take out GAP insurance. In the case above it meant I had £10k to go and get a replacement car. Yes, I could have got like-for-like with £6.5k, but in reality it won't be like for like. I'd bought my £10k car when it was a year old (so only a year of 'unknowns'), whereas a £6.5k like-for-like would have had 3 1/2 years of 'unknowns'.
silentbrown said:
CaptainCosworth said:
Not sure how it's open to fraud?
You were paid £10K for something worth only £6.5K. Less scrupulous folk than you would be looking for ways to have their car written off, pay £6.5K for a similar vehicle and have £3.5K "profit".Sorry if I'm late to the party...
The job I do entails dealing with many total losses per week and I'd say only 50% of them have GAP.
The ones that do are relieved they have it and the ones that don't are usually left blaming everyone else.
"What do you mean the car I paid £10k for 2 years ago is only worth £3.50 now?"
For the sake of a couple of hundred quid it's not worth the potential headache of not having it.
The job I do entails dealing with many total losses per week and I'd say only 50% of them have GAP.
The ones that do are relieved they have it and the ones that don't are usually left blaming everyone else.
"What do you mean the car I paid £10k for 2 years ago is only worth £3.50 now?"
For the sake of a couple of hundred quid it's not worth the potential headache of not having it.
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