Gap Insurance

[Kev_Mk3]

I have just purchased a new car and I am awaiting delivery dates.

Something I would like to do is get Return to Invoice GAP insurance to cover my backside but not totally sure how it works.

Car is 30k new and I am looking to take the insurance out over 3 years. Now this is where I am unsure what to do, Say in the next 3 years I had a bump and the insurance pay £18k out as they see this as market rate would I need the gap to be £13k to get the 30k back or would you say £10k is going to be enough as I can get a new one for that if required.

Hopefully this all makes sense.

Car - I30N

Click4Gap have quoted £279 for 3 years at £10k return

Thanks

[Zetec-S]

Surely a return to invoice policy will do exactly that - return you the value of the original invoice? At least that's what happened when my Focus was written off many moons ago.

- Car purchased for £10k
- Insurance came to me with a proposed market value of £6k.
- Showed this to the GAP insurance who said it was a little low and ask for my insurer to increase to £6.5k
- Insurers agrees, pays me £6.5k
- GAP insurance happy, pays me £3.5k
- I'm happy as I now have £10k

This was about 15 years ago, so perhaps things have changed?

[Dannbodge]

Nope that's it.

Amount paid on invoice 30k
4 years later gets written off
Insurance offer 20k
GAP negotiate and get it raised to 21k
GAP then pay the extra 9k to match the original invoice value.

I'd look elsewhere, I'm 99% sure my GAP insurance is for more than 10k.

Go to the top of the GG page and there is a thread maintained by ALA insurance who provide GAP insurance to myself and many other members.

[loafer123]

I insure with NFU. They include GAP insurance for free in their fully comp insurance, if it helps.

[Terzo123]

For a brand new car, slot of insurance policies will replace your car with a new one if written off within the first year. Well they used to.

I've got a 3 year GAP RTI policy with ALA for my car.

Gives a fair bit of peice of mind for 3 years. Merc wanted nearly 500 quid for a similar policy. After searching for discount codes via Google I think I paid about £150 for the 3 year policy.

[Skyrat]

Interested in this myself. Getting a new leased car delivered next week and didn't bother with GAP insurance for the last one, which was probably pretty stupid of me.

[twing]

Skyrat said:

Interested in this myself. Getting a new leased car delivered next week and didn't bother with GAP insurance for the last one, which was probably pretty stupid of me.

Why would you need GAP on a lease?

[Zetec-S]

twing said:

Why would you need GAP on a lease?

To clear any shortfall between the market value the insurance pay out and the remaining balance due on the lease.

[39sl]

Kev_Mk3 said:

I have just purchased a new car and I am awaiting delivery dates.

Something I would like to do is get Return to Invoice GAP insurance to cover my backside but not totally sure how it works.

Car is 30k new and I am looking to take the insurance out over 3 years. Now this is where I am unsure what to do, Say in the next 3 years I had a bump and the insurance pay £18k out as they see this as market rate would I need the gap to be £13k to get the 30k back or would you say £10k is going to be enough as I can get a new one for that if required.

Hopefully this all makes sense.

Car - I30N

Click4Gap have quoted £279 for 3 years at £10k return

Thanks

I'd suggest www.gapinsurance.co.uk
I've no affiliation but their quote will be lower than £279 and they have been excellent with me in the last few years.

[Kev_Mk3]

Thanks all it is a minefield to me and I will ask my insurance company when I call but will try other companies. I used them to get a base quote to help me see what it is.

[Truckosaurus]

Zetec-S said:

To clear any shortfall between the market value the insurance pay out and the remaining balance due on the lease.

Also (or perhaps instead...) to refund your initial payment if you bin the car on the first day of the lease.

(I'm not sure if Lease companies can continue to charge you rental charges on a vehicle than no longer exists, but happy to be corrected).

[FiF]

For those who have used gap insurance. Aiui your fully comp insurance for a brand new car would replace with a brand new vehicle in the first year, that's providing it's absolutely brand spankers from a dealer, and pre-registered or ex demo vehicles don't count.

You can then take out gap insurance with, say, ALA at some point during the first year for years 2,3 4.

Any issues with that strategy? For example any well known wriggles from the main car insurer?

[Glenn63]

Does this gap insurance not cause a whole load of chancers who just deliberately crash after a few years to get all their money back?

[PenelopaPitstop]

FiF said:

For those who have used gap insurance. Aiui your fully comp insurance for a brand new car would replace with a brand new vehicle in the first year, that's providing it's absolutely brand spankers from a dealer, and pre-registered or ex demo vehicles don't count.

You can then take out gap insurance with, say, ALA at some point during the first year for years 2,3 4.

Any issues with that strategy? For example any well known wriggles from the main car insurer?

You can take GAP policy with deferred start date, from year 2, if your insurance includes new car replacement in first year.

[Marlin45]

So it's possible to pay £30k for a Hunji I30 ?!

[Zetec-S]

Glenn63 said:

Does this gap insurance not cause a whole load of chancers who just deliberately crash after a few years to get all their money back?

There might be a few people who are happy to commit insurance fraud, but going by the state of the market I'd say it's not that many.

It's just rough "finger in the air numbers", but for every £10k claim paid out the GAP provider must need to sell around 40-50 policies which don't pay out in order to cover themselves. If more people start "abusing" the system then prices will start to rise, which they haven't done.

[anonymous-user]

Kev_Mk3 said:

I have just purchased a new car and I am awaiting delivery dates.

Something I would like to do is get Return to Invoice GAP insurance to cover my backside but not totally sure how it works.

Car is 30k new and I am looking to take the insurance out over 3 years. Now this is where I am unsure what to do, Say in the next 3 years I had a bump and the insurance pay £18k out as they see this as market rate would I need the gap to be £13k to get the 30k back or would you say £10k is going to be enough as I can get a new one for that if required.

Hopefully this all makes sense.

Car - I30N

Click4Gap have quoted £279 for 3 years at £10k return

Thanks

Seems expensive. I spent quite a bit less than this for ALAs top product for £30k worth of cover. That GAP insurance pays whatever the current list is to replace the car, so if the list price has gone up beyond the original invoice price, it covers the difference.

In reality, when my car was stolen after 15 months, it meant the GAP covered the shortfall between the motor insurers payout and the finance, then beyond right up to lost that was about £1500 more than it was when I bought the car (which I bought for considerably less than list, anyway). In the end I was £15k better off in cash. Don't tell the car thief!

[Flibble]

Glenn63 said:

Does this gap insurance not cause a whole load of chancers who just deliberately crash after a few years to get all their money back?

They tend to spank you on your motor insurance then, so not that great a plan.

I claimed on an ALA gap policy a few years back and it took a lot of the hassle out of the process as it meant less haggling with the motor insurance for a good price (though they refused to deal with the gap people, so I had to middleman it). Also meant I had a tidy sum handy to replace the car with.

[Kev_Mk3]

39sl said:

I'd suggest www.gapinsurance.co.uk
I've no affiliation but their quote will be lower than £279 and they have been excellent with me in the last few years.

£175 straight off with them so much better

[FiF]

You can get 25% off using Money saving expert link with ALA and Click4Gap.

274.50 3 years Invoice Plus Vehicle replacement on 33k of Subaru ( list price btw) ie for 3 years get a new one if stolen etc.