Hi
Just need some clarifications.
The return to invoice cover in GAP insurances is straightforward. The car insurance pays market value and the GAP insurance covers the difference so that you get the money you paid for the car as per the invoice which means that if your trigger the GAP insurance after 15 months of ownership you get your invoice money back and you can go and buy a new car for the same price. No money loss.
However if the car is on finance e.g. PCP then the car insurance pays market value and the GAP insurance will only pay the money necessary to cover the difference up to the PCP settlement value.
Am I right in saying that with a PCP if you trigger the GAP insurance you never recover your deposit money?
Is there different types of GAP insurances with regards to that point (i.e. initial deposit when the car is on finance)?
Thank you.
Just need some clarifications.
The return to invoice cover in GAP insurances is straightforward. The car insurance pays market value and the GAP insurance covers the difference so that you get the money you paid for the car as per the invoice which means that if your trigger the GAP insurance after 15 months of ownership you get your invoice money back and you can go and buy a new car for the same price. No money loss.
However if the car is on finance e.g. PCP then the car insurance pays market value and the GAP insurance will only pay the money necessary to cover the difference up to the PCP settlement value.
Am I right in saying that with a PCP if you trigger the GAP insurance you never recover your deposit money?
Is there different types of GAP insurances with regards to that point (i.e. initial deposit when the car is on finance)?
Thank you.