Discussion
OK folks help me with this one.
I bidded on a friends "junior super car" who doesn't need it anymore, but he said he's better writing it off as he had GAP Insurance, now i was a bit shocked but is this actually true?
I mean could someone say buy a 12c or R8 or similar for say 80k drive it for 3 years care free then "dispose" of the said vehicle expecting the insurance co to foot the bill? Seems like an easy out for hugely depreciating vehicle owners?
I always assumed GAP insured the difference between "current market value" and insurance estimation of current value and not purchase price?
Whats stopping people just going even further forging purchase invoices etc?
Was a bit flabbergasted with this TBH
I bidded on a friends "junior super car" who doesn't need it anymore, but he said he's better writing it off as he had GAP Insurance, now i was a bit shocked but is this actually true?
I mean could someone say buy a 12c or R8 or similar for say 80k drive it for 3 years care free then "dispose" of the said vehicle expecting the insurance co to foot the bill? Seems like an easy out for hugely depreciating vehicle owners?
I always assumed GAP insured the difference between "current market value" and insurance estimation of current value and not purchase price?
Whats stopping people just going even further forging purchase invoices etc?
Was a bit flabbergasted with this TBH
barrieeld said:
OK folks help me with this one.
I bidded on a friends "junior super car" who doesn't need it anymore, but he said he's better writing it off as he had GAP Insurance, now i was a bit shocked but is this actually true?
I mean could someone say buy a 12c or R8 or similar for say 80k drive it for 3 years care free then "dispose" of the said vehicle expecting the insurance co to foot the bill? Seems like an easy out for hugely depreciating vehicle owners?
I always assumed GAP insured the difference between "current market value" and insurance estimation of current value and not purchase price?
Whats stopping people just going even further forging purchase invoices etc?
Was a bit flabbergasted with this TBH
Gap can be return to invoice, Insurance fraud is rife and quite illegal.I bidded on a friends "junior super car" who doesn't need it anymore, but he said he's better writing it off as he had GAP Insurance, now i was a bit shocked but is this actually true?
I mean could someone say buy a 12c or R8 or similar for say 80k drive it for 3 years care free then "dispose" of the said vehicle expecting the insurance co to foot the bill? Seems like an easy out for hugely depreciating vehicle owners?
I always assumed GAP insured the difference between "current market value" and insurance estimation of current value and not purchase price?
Whats stopping people just going even further forging purchase invoices etc?
Was a bit flabbergasted with this TBH
Worth considering it's actually 2x ins frauds. GAP will only payout if you've had a payout from your normal car ins (@ current market value)
A crime number will be required from the police if the car has been stolen.
So 2x Insurance fraud + a police investigation for theft arson etc. Not a casual thing to enter into.
A crime number will be required from the police if the car has been stolen.
So 2x Insurance fraud + a police investigation for theft arson etc. Not a casual thing to enter into.
Edited by HumbleJim on Monday 7th July 19:30
V8LM said:
I don't get GAP insurance? Isn't it paying extra 'cause you bought a cheap, insufficient insurance first time?
No. Suppose you buy a car on 3 year finance. Year two it gets stolen and not recovered. Insurance duly pay out, which is less than the outstanding finance. GAP covers the insurance settlement vs finance balance - covers the gap, as it where.That said, I bought a new car 18 months ago. The sales rep recommended GAP at around £500, a quick query here had far better cover (return to invoice for 5 years) for less than £200. Seemed too good to be true, but apparently not.
GAP insurance is/was designed for folk who have bought the car on finance and in a total loss situation, the paying out of the market value by the insurance could be less than the amount still owing under the finance deal.
Quite a lot of insurance companies will replace a car bought new under a year old, and a few (NFU Mutual is one) will replace up to two years. This should be factored in to any need for a policy.
Hugely profitable for dealers, and if you need it, buy the right policy (what's on offer varies a bit) from the internet at perhaps a third of the price.
Quite a lot of insurance companies will replace a car bought new under a year old, and a few (NFU Mutual is one) will replace up to two years. This should be factored in to any need for a policy.
Hugely profitable for dealers, and if you need it, buy the right policy (what's on offer varies a bit) from the internet at perhaps a third of the price.
Slidingpillar said:
GAP insurance is/was designed for folk who have bought the car on finance and in a total loss situation, the paying out of the market value by the insurance could be less than the amount still owing under the finance deal.
Quite a lot of insurance companies will replace a car bought new under a year old, and a few (NFU Mutual is one) will replace up to two years. This should be factored in to any need for a policy.
Hugely profitable for dealers, and if you need it, buy the right policy (what's on offer varies a bit) from the internet at perhaps a third of the price.
Some gap policies can be bought that defer the start by one year to allow for the above.Quite a lot of insurance companies will replace a car bought new under a year old, and a few (NFU Mutual is one) will replace up to two years. This should be factored in to any need for a policy.
Hugely profitable for dealers, and if you need it, buy the right policy (what's on offer varies a bit) from the internet at perhaps a third of the price.
I agree with the above re: it was designed for lease cars etc but for some serious high performance stuff it just seems too tempting for the average joe...
Prob with a brief google search it will massive for organisied crime cartels to export vehicles on the cheap and individuals can happily claim full value.
I get the concept I just don't get it when it funds the gap on a retail purchase considering depreciation is around 50% for most of these cars in 3 years wtf?
Prob with a brief google search it will massive for organisied crime cartels to export vehicles on the cheap and individuals can happily claim full value.
I get the concept I just don't get it when it funds the gap on a retail purchase considering depreciation is around 50% for most of these cars in 3 years wtf?
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