Member Since: 08 Jun 2010
Location: cotswolds
Posts: 1482
Gap insurance info'
Hi all,
Can anyone explain gap insurance please. Surely, if the car is insured, its insured. Where does the gap come from.
Is it recomended that it is taken out ?
It covers the "gap" between the current market value at the time of your claim and the price you paid for the vehicle. Its essential if you lease and possibly PCP the vehicle as if it was declared a total loss while you were paying it off, you would still owe the difference between the insurance pay out and the outstanding value. Its cheap enough to consider if a private purchase but not essential. I wouldn't by through the dealer, its typically available for around £150 depending on the car from online providers.
6th Sep 2017 1:39 pm
BBDisco3
Member Since: 23 Nov 2008
Location: Cheshire
Posts: 3640
In the event of a total loss, the GAP (Guaranteed Asset Protection) will pay the difference between what your motor insurers give you in settlement of your claim, and the amount you paid for the vehicle or it can settle any shortfall in the finance, or a combination of the two.
6th Sep 2017 1:40 pm
Russell
Member Since: 24 Aug 2007
Location: Kent
Posts: 10564
There are different sorts, some pay the difference between market value and purchase cost others purchase price and cost of new car at the current timeMY17 D5 1st Edition Namib Orange
MY15 D4 HSE Kaikoura Stone
MY12 D4 HSE Nara Bronze Sold and gone
MY11 D4 HSE Stornaway Grey Sold and gone
D3 S spec Silver Sold and gone
Tow bar, full length roof bars, side steps, tow bar storage unit, surround camers.
D4 camera club
6th Sep 2017 1:45 pm
DrRobH
Member Since: 10 Oct 2015
Location: Hampshire
Posts: 924
Use a specialist firm like ALA.
Don't buy it from a main dealer unless you want to pay triple the premium Visitor from fullfatrr.com
RR Vogue SE 2011 4.4 TDV8
1974 Lightweight
6th Sep 2017 6:08 pm
hugeviking
Member Since: 08 Jun 2010
Location: cotswolds
Posts: 1482
Thanks for all the replies,much appreciated
Did a bit of ringing around earlier, and it seems that if the vehicle is written off within the first year, it is replaced, exact, like for like.
When reading through the gap insurance info from dealer, and yes, very silly money, significant or unusual exclusions include "any claim where your motor insurance policy provider has offered to repair OR REPLACE the vehicle whether you accept or not."
I was looking at only a year pcp, therefore i should not have even been offered gap insurance because it could not possably pay out.
Any observations,comments greatly recieved.
Andi.
6th Sep 2017 6:32 pm
BBDisco3
Member Since: 23 Nov 2008
Location: Cheshire
Posts: 3640
You may well get the car replaced under your motor insurance if a total loss within the first 12 months providing you are the first registered owner. (Some policies allow for pre-registered dealer cars which only have delivery mileage) However this is reliant upon your vehicle still being available and not a model which has ceased production.
If the motor insurer could not replace then you would receive market value at the time of the loss and you could still see a shortfall in the finance settlement. For this reason it is still worth considering GAP cover.
A one year GAP policy is available and at a much reduced cost compared to the usual three, four or five year polices.
6th Sep 2017 11:24 pm
Mogwyth
Member Since: 03 Oct 2014
Location: Pwllheli
Posts: 3976
When I had a car written off a couple years ago under a year old that was no longer in production they simpley gave an equivalent model.==================================
05 D3 HSE V8 4.4
04 MG TF 135
03 MG TF 115 Cool Blue Edition
02 MG TF 160
00 Hymer B564 Lionheart
1971 Series III 109
7th Sep 2017 12:32 am
Red Merle
Member Since: 30 Aug 2014
Location: Liskeard
Posts: 7438
Always check with your insurer about their policy on replacement during the first year. It varies from company to company.
My own GAP provider allows for 1 year's deferral at the start of the policy, giving me 5 year's cover, for the price of 4. Check that your chosen GAP provider will allow you to transfer any unused part of the policy to a new car (or allow a pro-rata refund) should you change your car before the end of the term.2011 - 2015: 3 x FL2
2015 - 2017: 2 x D4
2017 to date: FFRR SDV8
2023 to date: FL2 as a second car
2021 to date: Hinckley built ‘14 Triumph Trophy 1200
2022 to date: Hinckley built ‘14 Triumph Trophy 1200 & sidecar!
(One of only two known to exist in the world!)
7th Sep 2017 4:10 am
DrRobH
Member Since: 10 Oct 2015
Location: Hampshire
Posts: 924
ALA allow transfer to other cars. My FL2 policy was transferred to my RRS Visitor from fullfatrr.com
RR Vogue SE 2011 4.4 TDV8
1974 Lightweight
7th Sep 2017 7:14 am
BBDisco3
Member Since: 23 Nov 2008
Location: Cheshire
Posts: 3640
DrRobH - So if you had say a 3 year GAP policy on the FL2 and changed car after perhaps 2 years, does that mean you only get the remaining 1 years cover on the RRS?
14th Sep 2017 4:24 pm
DrRobH
Member Since: 10 Oct 2015
Location: Hampshire
Posts: 924
I got the remaining year and added more years to it as a top up.
Call them - they are very customer focussed and no messing about - unlike most LR dealerships Visitor from fullfatrr.com
RR Vogue SE 2011 4.4 TDV8
1974 Lightweight
15th Sep 2017 9:13 am
Iguana
Member Since: 14 Oct 2013
Location: 'Sunny' Zomerset
Posts: 9402
Inlcuded GAP insurance, RTI (Return to Invoice) so what you paid & RVI (Replacement Vehicle Insurance) so replacement equivelent aged car (When you purchased yours)
LR are selling GAP at £500 Iggy/Ieuan
Current LR =
2015 RR Sport Autobiography
&
1992 Land Rover Defender Camper
- Gone but not forgotten:
MY10 D4 GS
MY05 Disco 3 'S'
MY14 FL2 HSE manual in Blue
MY15 Disco 4 HSE Lux in Santorini Black
MY08 Disco 3 SE manual in Buck Blue
1960 Series 2 88" (No idea why I sold it!)
23rd Oct 2017 1:23 pm
BBDisco3
Member Since: 23 Nov 2008
Location: Cheshire
Posts: 3640
How many years cover is that for?
23rd Oct 2017 1:49 pm
Iguana
Member Since: 14 Oct 2013
Location: 'Sunny' Zomerset
Posts: 9402
Sorry, thought I'd added it
3 years cover Iggy/Ieuan
Current LR =
2015 RR Sport Autobiography
&
1992 Land Rover Defender Camper
- Gone but not forgotten:
MY10 D4 GS
MY05 Disco 3 'S'
MY14 FL2 HSE manual in Blue
MY15 Disco 4 HSE Lux in Santorini Black
MY08 Disco 3 SE manual in Buck Blue
1960 Series 2 88" (No idea why I sold it!)
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