Dealer Add-Ons

[whoami]

michael gould said:

whoami said:

michael gould said:

the house insurance is a poor example.....I’m not suggesting you have no car insurance or no house insurance, I have car insurance partly in case I have an accident but I also have a £1000 excess as I’m prepared to take some of the risk.......I understand that some people want to insure against all risk and, if they buy these sort of policies through the supplying dealer they will be paying 30 to 50% too much......dealers will often make more money out of finance and other financial products like gap insurance than on the actual car.

A minute ago you didn't even know what GAP insurace was for...

Gap insurance fills the profit gap between the lower and upper estimate of what the dealer would like to make on any deal. It’s not for the financially astute

Not quite but good try...

[Arjxh56]

I dont have gap insurance but i have an agreed payout price on my car insurance policy. THis INCLUDES the price i paid for extras.. It didnt make any difference to the premium i just had to jump through a few hoops for proof of value.

[michael gould]

Arjxh56 said:

I dont have gap insurance but i have an agreed payout price on my car insurance policy. THis INCLUDES the price i paid for extras.. It didnt make any difference to the premium i just had to jump through a few hoops for proof of value.

thats because you are financially astute

[stanwan]

michael gould said:

Arjxh56 said:

I dont have gap insurance but i have an agreed payout price on my car insurance policy. THis INCLUDES the price i paid for extras.. It didnt make any difference to the premium i just had to jump through a few hoops for proof of value.

thats because you are financially astute

I have an agreed value policy as well- problem is that the fine print stipulates that the agreed value cannot exceed the market value. GAP has a limit of £50k so I extrapolated it out and decied it was a good deal. Policy was arranged via car2cover NOT the dealer.

[Arjxh56]

Who is the policy with as i can see nothing in the small print on my policy that states agreed value has to be no more than market value??
My policy is through the AM Owners club with Locktons. Underwritten by Chubb from memory i think?

I will be giving them a call to double check...

[jonby]

Arjxh56 said:

Who is the policy with as i can see nothing in the small print on my policy that states agreed value has to be no more than market value??
My policy is through the AM Owners club with Locktons. Underwritten by Chubb from memory i think?

I will be giving them a call to double check...

locktons will take a purchase invoice for determining value in your first year of ownership if you wish, which by definition is market value, whether you buy new or used. If you buy new, you may wish to have an agreed value of less than you paid in order to reduce premiums, based on what you could sell the vehicle for - that's the policy holder's choice

on renewal, they sometimes ask for dealer support of value - just ask your dealer to supply a brief confirmation of current retail price for your car/similar car based on age/spec/etc. It can be a 'full' retail price, but it has to have some element of realism to it. locktons then accept that is market value

you can't insure the vehicle for more than the dealer at the start of the policy year suggests is retail price, which is a reasonable enough approach ! Of course the vast majority of vehicles fall in value during the course of the policy year, but you are 'locked in' to that agreed value for the whole of the policy year.

Theoretically, if by any chance values rose significantly enough during the policy year it was worth re-looking at, you can supply fresh evidence and pay a pro-rate increase in premium to cover the rest of the policy year

[stanwan]

Arjxh56 said:

Who is the policy with as i can see nothing in the small print on my policy that states agreed value has to be no more than market value??
My policy is through the AM Owners club with Locktons. Underwritten by Chubb from memory i think?

I will be giving them a call to double check...

Me too, I quizzed them on this and it turns out the agreed value has to be realistic. If a vehicle of the same age and condition can be acquired for less than the agreed value..........

[michael gould]

So gap insurance pays the difference between what the insurance company are offering and the replacment cost of the car from say a dealer.......that's a joke

[v8woollie]

michael gould said:

So gap insurance pays the difference between what the insurance company are offering and the replacment cost of the car from say a dealer.......that's a joke

NO NO NO!!!

It pays the difference between what the insurance company will pay out (book value or market/trade price) and what you paid for the car (invoice value). Sometimes known as 'return to invoice'.

Edited by v8woollie on Thursday 11th October 18:24

[v8woollie]

Example:

I buy a car from a dealer for £50k. Two years later with 10k more miles on it the car is written off. Book value is 30k so the insurance company pays that out. Cost to buy the same car with equivalent mileage might be £40k. My gap policy pays me the £20k difference between the insurance payout and my original invoice. I get a replacement for £40k and keep the remaining £10k

[michael gould]

v8woollie said:

Example:

I buy a car from a dealer for £50k. Two years later with 10k more miles on it the car is written off. Book value is 30k so the insurance company pays that out. Cost to buy the same car with equivalent mileage might be £40k. My gap policy pays me the £20k difference between the insurance payout and my original invoice. I get a replacement for £40k and keep the remaining £10k

Far better you don't write the car off in the first place.......but if I did , I just go to my wife and ask for a 50k top up.......simple

[whoami]

v8woollie said:

michael gould said:

So gap insurance pays the difference between what the insurance company are offering and the replacment cost of the car from say a dealer.......that's a joke

NO NO NO!!!

It pays the difference between what the insurance company will pay out (book value or market/trade price) and what you paid for the car (invoice value). Sometimes known as 'return to invoice'.

Edited by v8woollie on Thursday 11th October 18:24

But it's not for the financially astute Woollie

[michael gould]

I'm fully aware how gap insurance works......I was taking the piss...... 99% of gap policies are taken out by people who have finance on a car......something I won't do .......it's one of my little rules of life . And I understand it has a place in some people's worlds and lifestyles .....but not mine

[Neil1300R]

michael gould said:

v8woollie said:

Example:

I buy a car from a dealer for £50k. Two years later with 10k more miles on it the car is written off. Book value is 30k so the insurance company pays that out. Cost to buy the same car with equivalent mileage might be £40k. My gap policy pays me the £20k difference between the insurance payout and my original invoice. I get a replacement for £40k and keep the remaining £10k

Far better you don't write the car off in the first place.......but if I did , I just go to my wife and ask for a 50k top up.......simple

Classic Mr Gould. Sir, I salute you

[Arjxh56]

Kind of changing the subject a little but I was of the same opinion about finance, never bothered with it before and didn't like the idea! But on this occasion I was twisted and bent into it by the dealer... The reason I said yes was that they agreed that I would get less interest charged on the finance deal than a high interest saving account they could source.. In essence I am making more interest than I am paying each month (after tax etc)
I was very dubious as i am sure you are... but after seeing the paperwork I took it out.. I can always payoff without nasty penalties if I decide to do so and I have checked the monthly statements of interest charged Vs received and it works!

[v8woollie]

michael gould said:

I'm fully aware how gap insurance works......I was taking the piss...... 99% of gap policies are taken out by people who have finance on a car......something I won't do .......it's one of my little rules of life . And I understand it has a place in some people's worlds and lifestyles .....but not mine

99 percent. A figure derived from available statistics or thin air You are almost certainly wrong that gap insurance correlates to the people taking finance. To most it is a way ofsetting the despicable insurance practice of only paying out book value. Bds.

But then you may well be extracting the urine again,

[michael gould]

v8woollie said:

michael gould said:

I'm fully aware how gap insurance works......I was taking the piss...... 99% of gap policies are taken out by people who have finance on a car......something I won't do .......it's one of my little rules of life . And I understand it has a place in some people's worlds and lifestyles .....but not mine

99 percent. A figure derived from available statistics or thin air You are almost certainly wrong that gap insurance correlates to the people taking finance. To most it is a way ofsetting the despicable insurance practice of only paying out book value. Bds.

But then you may well be extracting the urine again,

Give us a kiss

[v8woollie]

michael gould said:

Give us a kiss

Edited by v8woollie on Thursday 11th October 20:43

[michael gould]

v8woollie said:

michael gould said:

Give us a kiss

Edited by v8woollie on Thursday 11th October 20:43

Thank God ......no tongues

[stanwan]

michael gould said:

I'm fully aware how gap insurance works......I was taking the piss...... 99% of gap policies are taken out by people who have finance on a car......something I won't do .......it's one of my little rules of life . And I understand it has a place in some people's worlds and lifestyles .....but not mine

I bought my car on a switch card. Given my abode was SE London the chances of theft and extreme vandalism were high - Opted for an RTI gap so that I would be guaranteed a brand new vehicle should anything befall it in the first 5 years. Also, there is theft of keys cover too.

I liken it to an insurance top up...