Replacement car insurance and GAP insurance
Discussion
Hi All
I am looking for fully comp insurance for a new car, that includes replacement insurance if it is stolen. I am also considering GAP insurance to make sure I am adequately insured to cover the full replacement cost but I was wondering what happens in the following scenarios
1. what if the main insurer won't pay for a new replacement if your model , spec etc is no longer available new. A new model could come out a year after you bought a new car which means if it’s stolen eg after 18months (and you have a two year replacement policy) you may not be able to get a new car unless you stump up the difference for the new model. Has anyone come across this and would you know if GAP insurance will pay to meet a new spec/ model? If so , which insurer please
2. what if the main insurer disagrees with the GAP insurer re the value of the car when it is stolen (valuing it as less ) and the GAP insurer states the car was worth more and is not prepared to pay the full GAP amount?
I am also assuming that you cannot switch main insurers after year one if for example you want replacement cover for two years as you have a limited period to take out replacement car insurance for theft (ie new replacement) and would not be able to switch and get another years cover after year one with a different insurance provider
I would be very interested to hear of peoples’ experiences and views
Thank you
I am looking for fully comp insurance for a new car, that includes replacement insurance if it is stolen. I am also considering GAP insurance to make sure I am adequately insured to cover the full replacement cost but I was wondering what happens in the following scenarios
1. what if the main insurer won't pay for a new replacement if your model , spec etc is no longer available new. A new model could come out a year after you bought a new car which means if it’s stolen eg after 18months (and you have a two year replacement policy) you may not be able to get a new car unless you stump up the difference for the new model. Has anyone come across this and would you know if GAP insurance will pay to meet a new spec/ model? If so , which insurer please
2. what if the main insurer disagrees with the GAP insurer re the value of the car when it is stolen (valuing it as less ) and the GAP insurer states the car was worth more and is not prepared to pay the full GAP amount?
I am also assuming that you cannot switch main insurers after year one if for example you want replacement cover for two years as you have a limited period to take out replacement car insurance for theft (ie new replacement) and would not be able to switch and get another years cover after year one with a different insurance provider
I would be very interested to hear of peoples’ experiences and views
Thank you
You seem to be making it very complicated.
You take out insurance as normal, most insurers will replace with a brand new car in year 1 regardless of how much it has depreciated.
You would then take out GAP for the difference between what your insurer pays out and what you want to cover, that may be a return to invoice value, or, replacement gap, which will get you back into another car, even if the used price is higher, for when people are paying over list for used cars (rare).
There will be a max limit on the gap payout, usually far more than any shortfall, and if it is a supercar where there could suddenly be a £100,000 shortfall the gap policy will price this in.
Look at somewhere like this to get an idea....
https://gapinsurance.co.uk
You take out insurance as normal, most insurers will replace with a brand new car in year 1 regardless of how much it has depreciated.
You would then take out GAP for the difference between what your insurer pays out and what you want to cover, that may be a return to invoice value, or, replacement gap, which will get you back into another car, even if the used price is higher, for when people are paying over list for used cars (rare).
There will be a max limit on the gap payout, usually far more than any shortfall, and if it is a supercar where there could suddenly be a £100,000 shortfall the gap policy will price this in.
Look at somewhere like this to get an idea....
https://gapinsurance.co.uk
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