Gap insurance

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Den48
Posts: 248
Joined: Sun Dec 20, 2020 10:13 pm

Post by Den48 »

Hi
My new car will be purchased on a pcp finance agreement, have many members taken out gap insurance, and not through the dealership high prices.
T4 recharge, plus spec, 23my

gripross
Posts: 309
Joined: Tue Oct 05, 2021 3:36 pm

Post by gripross »

I took out through dealer… at £301 was quite happy at that and as I got a decent discount on the car through carwow it was worked into the figures to get to what I wanted to pay monthly price for anyway and so was more than happy to pay that.. i would never buy a 40k car without it.
Ordered XC40 B4 FWD Ultimate in Vapour Grey 26/08/23 Factory Order Quoted 12 week Delivery
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blastpipe
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Location: UK

Post by blastpipe »

Check what your car insurance actually covers first
T4 Auto AWD R Design March 2019
jamie307
Posts: 367
Joined: Mon Apr 15, 2019 8:01 am

Post by jamie307 »

A big money spinner this.

Chances of writing it off within a year? No idea, but for the sake of argument say 1 in 1000.

Difference between new value and insurance payout - maybe £5000?

Premium £301.

So for every £301,000 worth of policies sold, they pay out £5k giving a 98% gross profit margin.
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Deleted User 3629

Post by Deleted User 3629 »

In today's market what GAP - you buy a car, pay a few hundred for gap insurance and are unfortunate to write it off - on insurance books its worth more than you brought it for, they are obliged to pay market value (if lucky) or more often what you paid for it - what does the gap insurance pay?
blastpipe
Posts: 565
Joined: Tue Aug 28, 2018 9:04 pm
Location: UK

Post by blastpipe »

My car insurance covers the gap anyway for the first year of a new car...check your policies
T4 Auto AWD R Design March 2019
gripross
Posts: 309
Joined: Tue Oct 05, 2021 3:36 pm

Post by gripross »

blastpipe wrote: Mon Oct 25, 2021 10:40 am My car insurance covers the gap anyway for the first year of a new car...check your policies
Yes quite a few policies will give you a new car if written off in first 12 months .. but after that it’s market value… but gap will get you back to invoice price and hence a new car. And so I understand some will think it unnecessary but for me it’s peace of mind and obviously if you’ve bought GAP from supplying dealer it should be a straightforward settlement as they will want to be the ones supplying the new car
Ordered XC40 B4 FWD Ultimate in Vapour Grey 26/08/23 Factory Order Quoted 12 week Delivery
Delivered 24th January 2024

Gone XC40 B4P R Design Pro Pearl White factory order ( ordered 13/07/21) took delivery 18/10/21
Den48
Posts: 248
Joined: Sun Dec 20, 2020 10:13 pm

Post by Den48 »

Hi
Yes, most well known insurance companies will replace the car with a new one if it is written off in the first year, the benefits of this is that you may be able to defer the start of gap insurance for the first 12 months. So if you have a 3 year pcp deal you only need to buy 2 years of gap insurance.
T4 recharge, plus spec, 23my
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Rob
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Post by Rob »

We have a 10% discount deal with ALA - almost certain it will be better cover and cheaper than direct with a dealer. Take a look here: gap/

ALA Discount Link: http://www.ala.co.uk/r/?r=Carforum
Use discount code: Forum123

Main points from ALA:

Covers new, used and pre-reg vehicles
Defaqto 5 Star Rated Policies
Up to 75% cheaper than any dealer
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