Mis-sold life insurance? Suspend payments?

[anonymous-user]

hutchst said:

It wasn't new when I bought it. It was 6 months old. I'm not daft enough to write off 30% of the value by driving it out of the showroom.

I insure my cars properly. I don't bet on who will win horse races or football matches.

So in your case it would be to ensure you get back what you paid (assuming a return to invoice policy) rather than what it’s worth at the time.

It just filling the GAP between what you’re insured for and what you need to replace with what you originally purchased.

It’s mainly for new car purchases so not necessarily right for you in your example.

[ralphrj]

hutchst said:

My misunderstanding then. I thought it was cover to fund any gap between an insurance payout and the remaining amount due under a finance agreement. I don't understand what other purpose it would serve. A decent comprehensive policy with a reputable underwriter would give me the market value of the car if it was written off. Why should I be entitled to more? But that's way off topic for this thread.

You aren't misunderstanding it as there are different types of gap insurance.

You can have a policy that covers the difference between the market value of the car and the balance outstanding on finance. This is useful when the rate at which the car depreciates is initially faster than the rate at which the finance is paid off. It isn't useful for all buyers as the car may not depreciate quickly or they may not have much outstanding on finance.

Alternatively you can have a 'return to invoice' type of policy which pays the difference between the amount you bought the car for and the amount it is worth when it is written off.

[Sheepshanks]

hutchst said:

My misunderstanding then. I thought it was cover to fund any gap between an insurance payout and the remaining amount due under a finance agreement. I don't understand what other purpose it would serve. A decent comprehensive policy with a reputable underwriter would give me the market value of the car if it was written off. Why should I be entitled to more? But that's way off topic for this thread.

In addition to other answers, you can also get Vehicle Replacement GAP so the car will be replaced even if the model has changed etc.

Arguably GAP makes more sense on a car that isn't new as their lower value means it's more likely to get written off, plus brand-new cars are generally replaced in the first year (2yrs sometimes) by your insurer.

[rlg43p]

TwigtheWonderkid said:

Policy totally misunderstood....again!

Can I suggest you find a responsible adult to deal with financial stuff for you. I'm sure you have other talents, maybe you're good at DIY or similar, but this insurance and financial stuff is clearly beyond you.

He is a master at the art of trolling though! Don't feed him any more.....................please!