GAP Insurance

Discussion in 'Insurance & Finance' started by gilberto, Feb 19, 2016.

  1. gilberto

    gilberto Active Member

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    Buying on PCP
    Do I need GAP insurance ?
    If so where is best to purchase?
    Thank you
     
  2. Tiim533

    Tiim533 Active Member

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  3. OP
    OP
    gilberto

    gilberto Active Member

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    Many thanks
     
  4. alzieboy

    alzieboy Active Member

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    Direct Gap
     
  5. Dinnie

    Dinnie Active Member

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    Yes it is cheaper buying direct rather than via MB but apparently the payout ratio is something like 10% so it has been said they represent poor value for money. I have no experience of purchasing GAP or using it.
     
  6. afflier

    afflier Member

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    Got ALA as recommended by Honest John. Very reasonable.
     
  7. kasper

    kasper Active Member

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    sold my Nissan 18 months into 3 year deal tried to transfer policy and pay the extra premium for my cls ,I was told to cancel the policy and take the refund.not very helpful so i'll take my business else where
     
  8. MartynW

    MartynW Active Member

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  9. Mercdad

    Mercdad Member

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    It's pretty tough mentally to bet £600 that you may total your new car. I've stayed away from it.
     
  10. Mercdad

    Mercdad Member

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    MartynW. Out of curiosity I looks at them just now. Much cheaper than MB
     
  11. MartynW

    MartynW Active Member

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    And they do a deferred 5 year, to start when car is a year old, plus their USP is paying max of 3 different valuations, which all seems OK to me, as I plan to keep the new motor for many years, having spent all my savings on it.:cool:
     
  12. Happytalk73

    Happytalk73 MB Enthusiast

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  13. mike_es

    mike_es Active Member

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    Sorry, but in what way does it make a difference as to paying out on the maximum of 3 valuations?
    Gap insurance works in 2 ways.
    1. If, when the car is written off, the amount of finance owed exceeds the purchase price of the car then the finance is settled.
    2. If, when the car is written off, the invoice price of the car exceeds the amount of finance owed on the vehicle, then the invoice price is paid.

    (Technically these are 2 different types of policy, one is Asset Protection and the other is Return to Invoice, but generally they are sold as a combined policy.)

    With your policy, by the sound of it, all they are doing after 3 years is paying the difference between the market value of the car and what your insurance company pay. Is that correct or am I missing something.?
     
    Last edited: Aug 5, 2016
  14. MartynW

    MartynW Active Member

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    I paid cash for the car and simply would want GAP to replace it with an equivalent new one, without quibble, if the worst happened and my ordinary insurance failed to come up with a sensible value. I stopped buying things on finance when I first became middle aged and grumpy, as the more parties become involved, the easier it becomes for them all to weasel out. My daughter was cheated by the insurer when her nearly new motorbike was stolen and even though the Ombudsman made them increase the payout, she was a lot out of pocket.
     
  15. mike_es

    mike_es Active Member

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    The insurer is only obliged to pay out the market value of the vehicle. They cannot be forced to pay out more than their undertaken responsibility, which is where either Asset protection or RTI comes in, to make up the shortfall.
    Your definition of a sensible value applies only to you, so cannot be taken as a definitive price guide.
    You really are missing a trick when it comes to not taking finance on vehicles or anything else as you lose the additional protection of the CCA (Consumer Credit Act)
    Regarding your daughter, why did she not take GAP? That would have precluded any shortfall in payment. :confused::dk:
     
  16. bigfoot217

    bigfoot217 Member

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    Hadn't heard of GAP insurance before reading this thread (and the Honest John article). Will definitely be looking into it more.
     
  17. a111r

    a111r MB Enthusiast

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    Who here has ever benefited from taking out Gap insurance?

    That's in real £s...not feeling 'safe'.
     
  18. markjay

    markjay MB Club Veteran

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    You are not supposed to 'benefit' from insurance.... other then through peace of mind. You are essentially insuring against undesirable events. If you are lucky then you will never need to claim on your policy.

    I did not 'benefit' from my private health insurance policy for the initial 20 years... then for the past 10 years I have been 'benefiting' from it heavily... but I much preferred the period when I was not 'benefiting' from it :(
     
    1 person likes this.
  19. mike_es

    mike_es Active Member

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    I have had several customers who have benefitted from the protection GAP offers.
    One had their 2 year old Audi stolen from their driveway and the insurance payout was £2400 short of what was owed on the finance, so that was cleared for her.
    Another was caught in the flash floods in Cumbria a while back and she used the RTI side of the policy as she owned the car outright after settling the finance. Got paid out the Invoice price in total.

    Admittedly, for the price that "Prestige" dealers charge, (I've heard over £1200 for policies to cover high end models :eek: ) it would hurt to pay, but, trust me it would hurt not to and then have to claim for a write off.

    A prime example being the customer who came in wanting to part ex his 2 year old RS5 to reduce payments. Not a problem apart from the £18,000 negative equity ! On a 4 year deal. With a £35000 balloon at the end. :doh:


     
    Last edited: Aug 26, 2016
    1 person likes this.
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