gap insurance quick help

[jamie128]

bought a car on finance

stealer trying to charge me 300 for 5 years gap insurance

which is the best cheaper gap insurance company to go with?

i want the finance to be payed off should the car be written off, with no sneaky terms and conditions

also if i take out gap insurance for one year initially, if the car gets written off in that year will that still pay for the 5 years finance or do i have to take out 5 years cover?

thanks

[Moo27]

Thats a good price!

The GAP i have at my dealership is £775 for 3 years!!

You can buy it independantly, all you have to do is search the net, but if a dealer is offering it, its usually a comprehensive one.

[Moo27]

And in answer to your other question, if your car is written off or stolen in the first year resulting in a total loss claim, yes it will pay the entire 5 year finance balance.

[jamie128]

Moo27 said:

Thats a good price!

The GAP i have at my dealership is £775 for 3 years!!

You can buy it independantly, all you have to do is search the net, but if a dealer is offering it, its usually a comprehensive one.

hmmm i just want to know which is the best one online as ive definately found it cheaper

[markcjd]

jamie128 said:

bought a car on finance

stealer trying to charge me 300 for 5 years gap insurance

which is the best cheaper gap insurance company to go with?

i want the finance to be payed off should the car be written off, with no sneaky terms and conditions

also if i take out gap insurance for one year initially, if the car gets written off in that year will that still pay for the 5 years finance or do i have to take out 5 years cover?

thanks

For 5 year finance gap £270-£300 is about the going rate. Google finance gap and you will see policies ranging from £129 upwards but as always, the devil is in the detail. Many motor insurance policies will replace a car like for like in year one of ownership. This only applies to the first owner however so demo/pre reg/used cars are not generally included.

[R1 Loon]

jamie128 said:

bought a car on finance

stealer trying to charge me 300 for 5 years gap insurance

which is the best cheaper gap insurance company to go with?

i want the finance to be payed off should the car be written off, with no sneaky terms and conditions

also if i take out gap insurance for one year initially, if the car gets written off in that year will that still pay for the 5 years finance or do i have to take out 5 years cover?

thanks

There are some insurance policies (RSA do it I think via brokers and possibly on their More Than brand) that will buy you a brand new car to the exactly the same spec if it's written off in it's first year.

I'm assuming you're buying a new car

[gizlaroc]

Make sure it is Return To Invoice, standard Gap is not worth the paper it is written on if you think about it.

Also, that sounds quite a lot to pay up front, I pay £6 a month for £25,000 shortfall with Lombard, if I sell the car after 12 months it has only cost me £72. If I stay in it 5 years sure it has cost me £360 still, but at least I am not paying for something and then throwing it away if I do sell early.

[saaby93]

Remnd me again why you need gap insurance?
Is it in case you have an accident or stolen and the insurance payout is less than the value owing on finance?
If it's a third party accidnt it's ok as you have to be back in the position you were before..
During first year insuere wil pay out like for like
So it's only years 2 and 3 you're worried about?
At what point is the finance crossover?

[Eagerbeaver]

Be careful. Don't assume that just because it's from a dealer you won't get caught out in a claim.

Some policies state there can be no modifications. Even putting a hands free kit in would be classifed as a modification.

Then some only pay out if you don't lose your excess.

Gap insurance is very very cheap, on of the real insurance bargains but buy with care.

I know of a lady who bought her Z4 Coupe. Just over 12 months later her car is driven into and it's a total loss. The money the insurance company paid out meant she could only afford a cheaper car. By coincidence she went to the dealer where she got her first car to see what they had and the salesman asked "why didn't you claim on your gap insurance" - "what insurance she said". It turned out she had bought gap insurance without knowing it. Anyway, she ended up with a nice new car again.

[R1 Loon]

Policy wording, page 5 towards the bottom, some good options on there, specifically stating they will pay the list price or buy you an identical car in the first 12 months.

More Than said:

If you buy your car new and within 12 months it is:
• stolen and not recovered; or
• damaged and the repair cost is more than 60% of its current new list price including VAT (where
appropriate);
we may replace it with a new car of the same UK specification.
If this is not acceptable to you, we will pay the market value of your car. If we replace your car this will be
instead of any payment and we must have the owner’s permission if it belongs to someone else.
If we cannot replace your car with one of the same UK specification, we will pay the most recent new list price,
including VAT (where appropriate), for that specification of car.

http://www.morethan.com/Process/Documents/motorpoli.pdf

[jamie128]

my car has been bought 3 years old btw guys, probably paying off the finance within 2 years

[saaby93]

jamie128 said:

my car has been bought 3 years old btw guys, probably paying off the finance within 2 years

what percentage are you putting on finance?

[jamie128]

during the first year insurance on the car they pay out like for like? is this true and does it apply to second hand cars?

[markcjd]

gizlaroc said:

Make sure it is Return To Invoice, standard Gap is not worth the paper it is written on if you think about it.

Also, that sounds quite a lot to pay up front, I pay £6 a month for £25,000 shortfall with Lombard, if I sell the car after 12 months it has only cost me £72. If I stay in it 5 years sure it has cost me £360 still, but at least I am not paying for something and then throwing it away if I do sell early.

I suspect the £25k refers to the maximum finace balance for the cover, not the shortfall payout. OP if you are buying a used car then your motoring insurance will not provide a like for like replacement in year one. If you have financed over 5 years but intend to pay off over 2, why do you need GAP? I presume you have a healthy financial position so what are the chances of being in negative equity?

[jamie128]

saaby93 said:

jamie128 said:

my car has been bought 3 years old btw guys, probably paying off the finance within 2 years

what percentage are you putting on finance?

10.9, lowest i can get, but im paying it off early so wont be paying too much extra

[saaby93]

jamie128 said:

during the first year insurance on the car they pay out like for like? is this true and does it apply to second hand cars?

No its only for a new car

If you're buying a second had car you'll usually have to pay a deposit and the rest on finance.
Depending how much interest the finance scheme, isn't it unlikely the value of the car will be less than the amount on finance?

Anyone else?
ETA: Watch out for early payment charges. Aren't you better off geting a loan from the bank?

Edited by saaby93 on Saturday 15th January 11:10

[eldar]

jamie128 said:

saaby93 said:

jamie128 said:

my car has been bought 3 years old btw guys, probably paying off the finance within 2 years

what percentage are you putting on finance?

10.9, lowest i can get, but im paying it off early so wont be paying too much extra

Flat or APR?

[edo]

Moo27 said:

Thats a good price!

The GAP i have at my dealership is £775 for 3 years!!

You can buy it independantly, all you have to do is search the net, but if a dealer is offering it, its usually a comprehensive one.

you were robbed. Gap to Invoice OP, or Just finance GAP? Value of the car?

If new, dont forget your insurance company will probably replace for new within the first 6 months.

[saaby93]

AT £300 theyre probbaly thinking that the value of the car will always be more than the amount of finance, so you'll never claim.
Why not use the £300 to reduce the finance?

[R26Andy]

BMW tried to charge me £350 for 3 years gap at £10k limit.

I went on click4gap and got a quote for £85 for two years (I only need two, dealers minimum was three).

Most extras that dealers sell you mainly consists of more profit and commision for the saleman.

Edited by R26Andy on Saturday 15th January 13:31