Gap insurance on leased M5's

[HoHoHo]

Sitting here watching the same videos I've watched for the last four weeks and no doubt will for the next three until my car arrives (currently being built ) and that got me thinking.

As I'm leasing, I should really have GAP insurance in case the worst happens, the lease company will want their car or value of back.

What have others done and what's the cost?

[ACE997]

I have an M5 lease starting in January. I am going to buy gap insurance to cover any potential shortfall from insurance payouts. It costs less than £150 for 2 years, there are a lot of companies offering gap insurance just do a search on google.

[HoHoHo]

ACE997 said:

I have an M5 lease starting in January. I am going to buy gap insurance to cover any potential shortfall from insurance payouts. It costs less than £150 for 2 years, there are a lot of companies offering gap insurance just do a search on google.

I've searched and previously got quotes for our X5, any experience of BMW costs?

[SKM1984]

Not sure how it compares but gap from bmw on my m135i was 499. With a bit of haggling I got it for £250

[SNEL]

Dealers will try to charge anything up to a grand. Got mine for about £150

[HoHoHo]

Any recommendations?

[akeithj]

Just taken a policy out with ALA way better value than those being offered by the dealerships, good people to deal with

[HoHoHo]

akeithj said:

Just taken a policy out with ALA way better value than those being offered by the dealerships, good people to deal with

Thanks - looks like £25k @ £249

I notice they also offer tyre insurance. I've had that on previous cars and it's a worthwhile addition. That takes the premium up to £588, pretty good

[-Z-]

Freedom gave me a quote with autoprotect for £247 for a £73k claim limit, seems better than a £25k limit?

[HoHoHo]

Ah, is it £73k though?

They normally work by topping up the difference between the value and the settlement figure/contract payments.

So £25k would be more than enough for the 36 month term.

[-Z-]

HoHoHo said:

Ah, is it £73k though?

They normally work by topping up the difference between the value and the settlement figure/contract payments.

So £25k would be more than enough for the 36 month term.

That's what I thought but it says £73k so unless it's a mistake?

[HoHoHo]

Interesting and I'll have a good look, thanks.

[Magic919]

If they are paying the difference between the car insurance payout and the original invoice price, a higher limit seems redundant.

[-Z-]

Magic919 said:

If they are paying the difference between the car insurance payout and the original invoice price, a higher limit seems redundant.

I am probably mistaken, but I think with a lease your liable for the remaining monthlies in full plus whatever the difference is between the payout and the value as deemed by the leasing company.

For eg written off in month 2 of a 3yr lease at 600/month means approx £21k in monthly payments due, hovering close to the normal £25k limit, even before any value shortfall?

Like I said I'm probably wrong, but its what I've read before on here. Can someone check their docs?

[HoHoHo]

Also, if you had the car stolen after say 12 months what would happen?

I assume insurance would pay out on the given value at that age/mileage - could you then use the GAP to fund the difference, buy a new one and then continue the lease with the new cat until the end of the term or are you obliged to pay off the lease and also have either a car or the amount in cash payable to the lease company to the value of what the car was worth?

Hope that makes sense!

[forest172]

For the first 12 months tescos insurance buy you a new one if total loss. Its year 2 for me when I need to consider gap

[Wolands Advocate]

I think you have to buy GAP insurance within a certain period after buying the car?

We got GAP insurance from ALA the other day on my other half's new 500 (given it was £90 rather than the £300 Fiat wanted) and one of the questions was "did you purchase the vehicle within the last 90 days?".

[michael_JCWS]

found ALA seem to be the best price

use CC13007 discount code to 7% off as well

[Sir_Dave]

Or 10% off using discount code VRI4434

[michael_JCWS]

Sir_Dave said:

Or 10% off using discount code VRI4434

Ar5e oh well :-)