Gap Insurance, private lease car

[Blown2CV]

trying to work out whether i need a gap policy. I'm in a 2 year lease on a Golf R, and my insurer have said they will pay out full purchase value in the first year, and thereafter it's market rates. So, I guess it's the second year I need to worry about?

[Blown2CV]

Well they do reckon they'd replace it with a new one in the first 12 months from new. Presumably it's slightly more complicated as there is a 3rd party involved (the lease co i mean), and maybe they'd rather just copper-up and write a cheque.

I'm just finding it really difficult to determine whether I need Gap - either just for the 2nd year or whatever. My insurer says "do whatever", the lease co says "do whatever", but some people have said that if you've got a lease you can be uber-fked if the car gets written off, far worse than if it was just a PCP. If it was that much of a massive thing, why do lease cos and tons of others not try and sell you it??

[Blown2CV]

Aviz said:

what does the lease co say? some are crafty and expect you to pay off all the remaining payments, and expect the market value of the car in the event of total loss/theft.

some just halt the lease, and then accept market value. insurance should pay market value.

ok that's prob my next port of call then! I just assumed they always wanted the same thing, but if it varies between contracts and lease cos then i'd better check. Cheers

[Blown2CV]

OK so leasing co will expect the market value of the car, insurer say they would pay market value in the second year... so i am presuming i don't need gap... is there likely to be a difference in what they each expect the market value to be?

[Blown2CV]

you need to check with both your insurance co and your lease co. Basically they'd either replace with a new car or pay full new value out in first year, thereafter it's market value.

[Blown2CV]

talksthetorque said:

In a private lease at the moment. My plan (should this happen- touch wood it won't) is to get the insurance co to pay market value. Then buy an exact replacement and get the lease go to accept this car as the return at the end of the lease. My lease allows for this, can't remember the exact wording though.

well it's an important point, because the contract you sign is designed to stitch you up anytime you step of the 'happy path' even if it's not your fault. Worth checking, as I'd be surprised if they just allowed it without some kind of penalty.