GAP Insurance, anyone actually been paid out ?

[B16JUS]

Has anyone here actually been paid out ?

Took a friend to buy a new car yesterday he is deciding on weather to buy the gap insurance its £619 for 5 years on a 25k car

Am i correct in thinking

car new is 25k
e.g car in 3 years worth 15k
Insurance pays out 15k
gap pays 10k
so end up with 25k in pocket again ?

Main thing does it just pay out or is it like insurance where you need to fight your corner.

J

[Heartworm]

I thought it paid out the difference inw hat the car is worth, and what teh finance is worth, e.g

after 3 years worth 15K but finance still has 20K, so Gap insurance pays 5K


But that's keyboard knowledge, I've never used it.

[djfaulkner]

Pretty much yes.....

Never been in the situation where is pays out, but from my understanding the cover will pay the difference between what the insurance pays and the finance outstanding.

Just have to check with the gap cover people before accepting the figure from your insurance.

[mercfunder]

Depends on whether you bought RTI gap insurance or finance gap insurance.
RTI will pay out difference between insurance valuation and what you paid.

[B16JUS]

Dont think this involves finance more invoice value so must be RTI

J

[Elroy Blue]

When I bought my car I was quoted £590 for 3yr rti Gap. I got better cover for £98 off the net.

[YorkshirePudding]

I got paid out when one of my cars got written off, well worth the money.

You can get it a lot cheaper than £600 though.

[redgriff500]

As with all insurance it depends.

A mate (in the car trade) bought a brand new Q7 for his wife from the local Audi dealer and it was stolen within the first 9 months.

I'll make the figures up but lets say it was £50k new.

His insurers said it was currently worth £40k hence he went to the Gap insurer for £10k

BUT Gap insurer said it was worth £45k hence offered £5k

It went around in circles for 9 months.

They tried to get him to buy an import, not the same spec etc

I believe it was sorted in the end but it certainly wasn't the hassle free option he expected.

[5678]

redgriff500 said:

As with all insurance it depends.

A mate (in the car trade) bought a brand new Q7 for his wife from the local Audi dealer and it was stolen within the first 9 months.

I'll make the figures up but lets say it was £50k new.

His insurers said it was currently worth £40k hence he went to the Gap insurer for £10k

BUT Gap insurer said it was worth £45k hence offered £5k

It went around in circles for 9 months.

They tried to get him to buy an import, not the same spec etc

I believe it was sorted in the end but it certainly wasn't the hassle free option he expected.

Prob worth the effort to avoid being £10k out of pocket?

[Bisonhead]

Guarunteed Asset Protection or Purchase Price Protection (GAP/PPP) works on the basis that you contact them before your insurance company in the event of a claim. The will 'negotiate' with your insurers to get the 'best price' for your car and then pay out the difference to get you back to the invoice price you paid for the car.

They do pay but you have to be on the ball. It is also teired so the more valuable your car the more you have to pay but also the deeper the gap they will fill.

It is a good idea on a new car but a no-no on SH. If you crash in the first 3 years of ownership of a new car you will make your money back. That is if you can afford the £400 or so for the GAP from the dealer!

[GBDG]

Worth having, but buy it off the internet and not off the dealer. He will save £400 - £500

[Dave Hedgehog]

there are different types of GAP, they also have a max payout value that you specify

I took out 4 year return to invoice 25k cover for £220

it is normally always cheaper to go to a third party than the dealer, it is a must imo if you have heavily financed a car as you dont want to be left with a loan to pay for and no car

Return to Invoice GAP insurance - RTI Gap insurance is the best solution for cars that are new or up to 7 years old. You can buy one, only if your car is at least 3 months old. This type of insurance will pay the difference between insurance claim settlement or the outstanding settlement figure you owe the financier or the invoice amount (amount you paid for the car)- whichever is greater up to the claim limit you have chosen.

Finance GAP insurance - This sort of insurance should be your choice if you have bought your car with a loan or a finance agreement including hire purchase or lease purchase. In this case, Finance GAP insurance will pay the difference between the car insurance claim settlement amount and the sum left outstanding in the loan agreement. In Finance this type of insurance, there is a chance that the payout could be more than the RTI GAP insurance and you eliminate the risk of financial negative equity.

Replacement GAP insurance- This sort of insurance will cover the cost of replacing your car with the equivalent model you bought, in the first place. This cover comes for new or Ex Demo cars, and has to be purchased within 3 months of car purchase. If your car gets into an accident or is stolen, and is written off, then Replacement GapInsurance will pay the shortfall amount between the market value paid by your insurer and the cost of replacement vehicle (it has to be of the same make, age, mileage etc) – or the money you owe to your finance company – whichever is the greater.

[redgriff500]

5678 said:

redgriff500 said:

As with all insurance it depends.

A mate (in the car trade) bought a brand new Q7 for his wife from the local Audi dealer and it was stolen within the first 9 months.

I'll make the figures up but lets say it was £50k new.

His insurers said it was currently worth £40k hence he went to the Gap insurer for £10k

BUT Gap insurer said it was worth £45k hence offered £5k

It went around in circles for 9 months.

They tried to get him to buy an import, not the same spec etc

I believe it was sorted in the end but it certainly wasn't the hassle free option he expected.

Prob worth the effort to avoid being £10k out of pocket?

He wouldn't do it again.

9 months without her car.

Next time he'd just go out and buy a comparable 9 month old used one.

[sinizter]

For my dad. Twice.

Written off Porsche Carrera 4S after 3 months of ownership and a E46 M3 Convertible after about a year of ownership.

[Soovy]

sinizter said:

For my dad. Twice.

Written off Porsche Carrera 4S after 3 months of ownership and a E46 M3 Convertible after about a year of ownership.

[LHD]

Soovy said:

sinizter said:

For my dad. Twice.

Written off Porsche Carrera 4S after 3 months of ownership and a E46 M3 Convertible after about a year of ownership.

See Soov, GAP insurance is worth it.

[RVVUNM]

Yes. A friend of mine crashed her Type R and was paid out in full the 13k the car cost her. Best bit is she didn't even know she'd bought Gap as the salesman stitched it into the deal somehow.

[jamei303]

redgriff500 said:

As with all insurance it depends.

A mate (in the car trade) bought a brand new Q7 for his wife from the local Audi dealer and it was stolen within the first 9 months.

I thought most insurers paid the new purchase price for cars bought new and written off in the first year.

[Vocal Minority]

5678 said:

redgriff500 said:

As with all insurance it depends.

A mate (in the car trade) bought a brand new Q7 for his wife from the local Audi dealer and it was stolen within the first 9 months.

I'll make the figures up but lets say it was £50k new.

His insurers said it was currently worth £40k hence he went to the Gap insurer for £10k

BUT Gap insurer said it was worth £45k hence offered £5k

It went around in circles for 9 months.

They tried to get him to buy an import, not the same spec etc

I believe it was sorted in the end but it certainly wasn't the hassle free option he expected.

Prob worth the effort to avoid being £10k out of pocket?

But is he £10k out of pocket? He gets back what the car was worth when it was nicked...depreciation took care of the rest so would have been out of pocket anyway.

Or am I missing something?

[Garlick]

Chap here at the office forgot he took it out, was involved in an accident and got the full pay out as a result.