'Negative equity'? in GAP insurance

Discussion in 'Insurance & Finance' started by uumode, Jan 31, 2016.

  1. uumode

    uumode Hardcore MB Enthusiast

    Messages:
    1,495
    Joined:
    Sep 1, 2003
    Car:
    W205 C200 AMG Line Premium Plus
    Can't get my head around the concept of 'negative equity' in car value in relationship to GAP insurance.

    Copy here from GAP insurance company;

    Customer Purchase Additional Options

    Negative Equity (NE)
    Subject to an additional premium being paid (identified by ‘Negative Equity’ in
    the additional option section of the policy Schedule) cover will include up to a
    maximum of £2,000 Negative Equity carried forward from a previous agreement financed within the original finance agreement.


    GAP insurance what is not covered:
    .....
    3. Negative Equity (unless an additional premium has been paid [above]) or the cost
    of fuel, surrenderable road fund licence and salvage value

    basically don't understand :)
     
  2. OP
    OP
    uumode

    uumode Hardcore MB Enthusiast

    Messages:
    1,495
    Joined:
    Sep 1, 2003
    Car:
    W205 C200 AMG Line Premium Plus
  3. def90cars

    def90cars Hardcore MB Enthusiast

    Messages:
    1,528
    Joined:
    Feb 10, 2014
    Location:
    Derby
    Car:
    S205 AMG C63S, W204 C63 AMG PPP, Abarth 595 Competizione, Fiat 500 Twinair, Toyota Carina E GTi
    Google "lump and bump".

    Was popular in the "never had it so good" Tony Blair days to take NE from agreement and lump it into the next, i.e. add money to the finance on your new car to pay off the last one.
     

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