Gap insurance?

dbm

Registered User
A new purchase will soon be arriving, and I’m considering Gap Insurance for the first time.

Any suggestions for reputable and reasonably priced policies? Sticker price will he just under £60k...
 
+1 for ALA...I’ve used them twice, and their prices have always been very competitive.
 

Darlo

Registered User
Been using ALA for last 10 years.

Try promo code MSE25 for 25% off.
I used this code the other day when I bought it for my R and it worked.

My usual gap provider no longer provides for performance vehicles surprisingly (gapinsurance.co.uk)
 
Two absolute musts: Do not buy from the dealer, and make sure you understand what type of GAP product you're buying. Personally, I think GAP is of very limited value anyway and wouldn't bother. At the end of the day, the insurer has to pay you market value for the car in the event of a write-off, so you should be able to get a similar car to the one you've lost and not really lose out. But it you shop carefully and get 'return to invoice' GAP, you can basically ensure you can pay off your finance entirely and get back in a new car if that's what you want.
 
It’s worth remembering that some insurance policies offer to replace for new if the car is a total loss in the first year. Both of my current insurers do so: First Direct and LVE.
 
It’s worth remembering that some insurance policies offer to replace for new if the car is a total loss in the first year. Both of my current insurers do so: First Direct and LVE.
Yup, this is a really good point too. Quite a few do - and some even in the first two years up to a certain mileage.
 

dbm

Registered User
Cheers all - I’ve not bothered in the past and been buying ‘nice’ cars for about 25 years. Might just be being over cautious :friendly wink:

I certainly won’t be buying from the stealer, and will check out my policy with More Than to see what it says about new cars and first year of ownership, too. :thumbs up:
 
Two absolute musts: Do not buy from the dealer, and make sure you understand what type of GAP product you're buying. Personally, I think GAP is of very limited value anyway and wouldn't bother. At the end of the day, the insurer has to pay you market value for the car in the event of a write-off, so you should be able to get a similar car to the one you've lost and not really lose out. But it you shop carefully and get 'return to invoice' GAP, you can basically ensure you can pay off your finance entirely and get back in a new car if that's what you want.
You have to take into account they might pay out market value which is the cost of a replacement, but if on finance they pay them first and you would be responsible for any shortfall - You can't just take the money and buy a second hand car whilst leaving the finance going.
 
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You have to take into account they might pay out market value which is the cost of a replacement, but if on finance they pay them first and you would be responsible for any shortfall - You can't just take the money and buy a second hand car whilst leaving the finance going.
Not necessarily the case actually. It's down to terms and conditions/discretion of the finance provider and, from a financial rules point of view, they'd have to make it very clear before you took out the finance if, for example, you'd be expected to pay the finance off in full in the event of a write-off. It's a messy area, but generally speaking customers have a lot more rights in these situations than they realise (hence why people pay money for GAP Insurance when they don't necessarily need it). If you can get a good price for a proper 'return to invoice' product then it at least gives peace of mind that you can get things sorted quickly without having to argue the toss.
 
Not necessarily the case actually. It's down to terms and conditions/discretion of the finance provider and, from a financial rules point of view, they'd have to make it very clear before you took out the finance if, for example, you'd be expected to pay the finance off in full in the event of a write-off. It's a messy area, but generally speaking customers have a lot more rights in these situations than they realise (hence why people pay money for GAP Insurance when they don't necessarily need it). If you can get a good price for a proper 'return to invoice' product then it at least gives peace of mind that you can get things sorted quickly without having to argue the toss.
Bank loans you generally are ok, but finance deals have to be cleared because the asset no longer exists and if you stopped paying for it and they tried to recover it , they couldn't take your replacement car because the paperwork wouldn't match but you'd be responsible for the outstanding balance.

I've been doing insurance for over 30 years and insurers always settle the finance provider first - It's a question on the claim form - Any outstanding finance
 
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Bank loans you generally are ok, but finance deals have to be cleared because the asset no longer exists and if you stopped paying for it and they tried to recover it , they couldn't take your replacement car because the paperwork wouldn't match but you'd be responsible for the outstanding balance.

I've been doing insurance for over 30 years and insurers always settle the finance provider first - It's a question on the claim form - Any outstanding finance
The question on the claims form doesn't necessarily reflect consumer rights. Without getting too much into detail (because I can't) I'm a long-standing 'independent finance professional'. I'm pretty confident that if I wrote my car off, I'd not need GAP. But that's because I know my rights and how to fight for them. None of this is made clear to people generally speaking.

You're right in terms of the asset no longer existing. But it's the value of the asset that matters, and any finance company plain refusing to revise paperwork to reflect a new asset of equal or greater value would have a tough job explaining how they are acting in a way that is 'fair and reasonable'.
 
The question on the claims form doesn't necessarily reflect consumer rights. Without getting too much into detail (because I can't) I'm a long-standing 'independent finance professional'. I'm pretty confident that if I wrote my car off, I'd not need GAP. But that's because I know my rights and how to fight for them. None of this is made clear to people generally speaking.

You're right in terms of the asset no longer existing. But it's the value of the asset that matters, and any finance company plain refusing to revise paperwork to reflect a new asset of equal or greater value would have a tough job explaining how they are acting in a way that is 'fair and reasonable'.
I agree that the finance company should change the paperwork - You don't have to have GAP it's not a requirement but peace of mind that you return to invoice and will hopefully have something left over to put back into a deposit.

Like you say it depends what the T&C's of the finance agreement say as well
 

dbm

Registered User
Cheers guys, finance and insurance are both somewhat labyrinthine!
 

itf

Registered User
My dealer's Gap wasn't miles away from the market price (and was Defaqto 5* rated) so I went with it last time I bought an A3 (2016) but weirdly wasn't competitive this time despite being part of the same group. Let the dealer quote, there's no harm.
 
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Chris4410

Registered User
ALA have very competitive rates, it was around £200 for 3 years cover on mine. For that sort of money it is well worth having, on the flip side I can see people questioning whether to take it or not when the dealership is trying to charge you £600+ for the same product
 

DAN@ADRIAN FLUX

Site Sponsor
Site Sponsor
Hi.

Just to let you know that we offer a 12 month product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP insurance we feel for some customers it can make a cost effective alternative.

Please feel free to take a look if you wish.


Regards,

Dan.
 

Santiago

Registered User
ALA have very competitive rates, it was around £200 for 3 years cover on mine. For that sort of money it is well worth having, on the flip side I can see people questioning whether to take it or not when the dealership is trying to charge you £600+ for the same product
That's really the 'bottom line' on Gap insurance. It's "cheap as chips" (about £1.50 per week ) if bought through ALA or Car2Cover, so a bit of a no-brainer if you ask me. It gets you into a replacement car with the minimum of fuss with no arguing about current market value etc. I tend to choose 'replacement vehicle' cover (maybe up to £2 per week!) rather than 'return to invoice', as this get you back in a brand new car if you write it off or have it stolen 2-3 years down the line. Like all insurance, you are basically buying peace of mind.
 
That's really the 'bottom line' on Gap insurance. It's "cheap as chips" (about £1.50 per week ) if bought through ALA or Car2Cover, so a bit of a no-brainer if you ask me. It gets you into a replacement car with the minimum of fuss with no arguing about current market value etc. I tend to choose 'replacement vehicle' cover (maybe up to £2 per week!) rather than 'return to invoice', as this get you back in a brand new car if you write it off or have it stolen 2-3 years down the line. Like all insurance, you are basically buying peace of mind.
To a point, but £1.50 per week for nothing isn't a no brainer, it's just a waste of £1.50 a week. If your motor insurance includes new car cover in the first year or two, you don't need GAP in the first year or two. Simple. But yes, if you need GAP, get 'replacement vehicle' or 'return to invoice'. That Product mooted by Adrian Flux above is cheap for a reason (not saying it won't suit some people) - it won't necessarily cover the 'gap' between payout and finance liability.
 

Santiago

Registered User
It’s worth remembering that some insurance policies offer to replace for new if the car is a total loss in the first year. Both of my current insurers do so: First Direct and LVE.
Good point. Hadn't realised that. Just checked my LV policy and, yes, you get a new car (same make, model and spec) if your car is written off or stolen within the first 12 months of purchase. It would therefore make sense to buy GAP insurance to cover years 2 - x if you want that peace of mind. GAP cover obviously becomes more important as the car ages, as if written off in year 3 (say), the replacement car could then easily be worth £15k more than the one your have just lost. Without GAP, you would just get market value.
 
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