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| Retroanaconda Member Since: 04 Jan 2012 Location: Scotland Posts: 2550  
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Gap insurance is to cover the difference between a payout and outstanding finance.
If you don’t have finance but are concerned about a payout being less than the real market value of the vehicle then you need agreed value insurance - which is a different thing. |
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2nd Sep 2023 9:10pm |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2245 
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Okay l didn't realise that.
The insurance broker told me it would cover the difference between the insurance payout and the new cost. So the way l interpreted that is, the vehicle costs £55,000 new and let's say is stolen at 2 1/2 years old. The insurance pay out £40,000 Then the GAP policy pays a further £15,000 So l can go out and buy a brand new replacement vehicle. Is that not how it works? l need to know if it's the wrong policy. Agreed Value surely won't work on a new vehicle as the "Agreed Value" can only be the current value and not the cost of a new vehicle? |
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2nd Sep 2023 10:21pm |
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| lac Member Since: 29 Jan 2023 Location: Moray Posts: 37
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You can get “ Back to invoice plus’ gap insurance which covers you whether you paid cash, HP and PCP. It will quote” This GAP Insurance policy will, in the event of a total loss, pay the difference between the comprehensive insurer’s market value settlement and the original vehicle invoice price or the finance settlement figure, whichever is higher at the time.” Don’t buy from dealers as it is one of their money makers and is far cheaper buying direct from a company so don’t use brokers either. I just got a quote of £423 for a vehicle 4 months old with 1500 miles and a return to invoice value of £88k which does not have them” market value “ clause Remember too that many insurance policies cover you for ”return to invoice’ cost during the first year of ownership so also worth checking that out. Have bought GAP in the past for added peace of mind 110 D300 XD HSE, Carpathian, Tow pack. Air Susp pack, cold pack, hud, |
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2nd Sep 2023 10:54pm |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2245
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l've discovered that most GAP insurance policies won't quote if you've had the vehicle more than 180 days.
Only two companies would quote for my nine month old D250. l found this bizarre as you don't need GAP insurance in the first year after buying a new vehicle. Also one of them couldn't value the vehicle (Defender Commercial) because it's "not in the Parkers guide" and they were "waiting for the broker to value it and would call me" They didn't call me back. Anyhow, thank you for the replies above. l will have a word with the company that did quote on Monday and make sure the policy is right for me. |
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3rd Sep 2023 11:05am |
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| Moo Member Since: 01 Oct 2021 Location: Bath Posts: 1035 
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I just took mine out today with ALA 10 months and 17,000 miles after buying it. It starts on the 29th October, 12 months to the day I purchased my Defender and will run for three years.
I always take it out when I buy a new car but totally forgot this time so thanks for the prompt.  Eiger Grey MY23 D250 SE with bits. Known as Noddy. |
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3rd Sep 2023 5:05pm |
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| Leamreject Member Since: 19 Dec 2020 Location: Middle Earth - Leamington Spa Posts: 955  
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Just another insurance cost
We each need to asses the balance of this risk within our own personal circumstances. It’s not something I would or have ever taken, but some people need the peace of mind when they are slaves to their finance commitments. Ride like you stole it!! If I’m not on a bike it’s because only a 4x4 will do… 2011 2.4 Puma 90 HT |
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3rd Sep 2023 8:56pm |
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| Moo Member Since: 01 Oct 2021 Location: Bath Posts: 1035
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Luckily I’m not a slave to anything. My commitment is £480 for four years, so just a few tanks of fuel, verses the potential of £28k+ loss. I paid £76k for my car in October 2022. WBAC values it now at £50k with 17k on the clock.
I was in Italy last week and nearly got taken out by a Tw4t in a Mercedes. Seems like £480 for four years is a good deal to me, but hey, it’s your call. Eiger Grey MY23 D250 SE with bits. Known as Noddy. |
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3rd Sep 2023 10:59pm |
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| Vintagepaul Member Since: 20 Jan 2015 Location: Rye, East Sussex Posts: 481 
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My son purchased a new Mini Cooper JCW in 2018 on a PCP finance deal, he wrote it off on an the icy road 18 months later but had purchased GAP insurance when taking out the finance on the car ( I think it cost approximately £300 for the 4 year term).
He was insured with Aviva who were excellent and offered a realistic payout for the car which was then topped up by the GAP insurers to the original invoice value which was another £7,000! Probably one of his better financial decisions he has made. If you are buying on finance for the small extra cost per month it is almost an essential product for peace of mind. 2015 Defender 90XS HT |
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4th Sep 2023 6:31am |
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| SteveG Member Since: 29 Nov 2011 Location: Norfolk Posts: 656 
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Most insurers provide a new replacement or equivalent value in first 12 months for a new car at no extra cost. So waiting 12 months to buy it is the sensible thing to do. |
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4th Sep 2023 8:07am |
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| SteveG Member Since: 29 Nov 2011 Location: Norfolk Posts: 656
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Most GAP insurance policies used to be there to cover the difference in current value and the settlement figure on finance, which for the first 50-60% of the period of most finance agreements would mean you paying out extra in the event of a total loss. They do not cover a new replacement vehicle too. So check what you’re buying cover wise to make sure it’s offering what you think.
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4th Sep 2023 8:12am |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2245
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l will, thank you for the advice.
I bought the Defender with cash and a bank loan and only owe £10,000 so there's no PCP or outstanding finance over the vehicle value But the Commercial version is still worth close to the £55k l paid for it according to Motorway although WBAC thinks it's worth £44k. Looking online the cheapest Commercial l could find was a 2021 at £44k+VAT As l am not VAT registered that would cost me £53k and that's for a base model with no options and a higher mileage than mine. Also Mine has £4,000 of options and the WBAC etc don't take that into account Last edited by lightning on 4th Sep 2023 8:33am. Edited 1 time in total |
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4th Sep 2023 8:24am |
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| lightning Member Since: 23 Apr 2009 Location: High Peak, Derbyshire Posts: 2245
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"I paid £76k for my car in October 2022. WBAC values it now at £50k with 17k on the clock"
That's the thing though, l bet you couldn't buy one like yours for £50k WBAC is trade price for a start, and the dealers will retail it for more. You'd be very lucky to buy one for the WBAC price. |
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4th Sep 2023 8:27am |
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