Gap insurance?

[Double V]

As an example, lets say this same £32k car was written off in 2 years, you've made your payments and the outstanding finance is now £26k. Car is valued at £24k by insurance. In the eyes of the insurance company you are now £2k in negative equity in order to settle the car finance.

GAP pays out above what the insurance valuation is, in this case £8k (replacement value - insurance value) £2k of this goes to settle the finance and the remaining £6k effectivly goes towards the deposit on the new car.

Hope that helps clear things up.

Si

This was so easy to understand.
Why don't these insurance companies explain like this for us extra smart people.

Thanks a lot that was good.

So technically we are better off with Vehicle Replacement plan.
Right ?

 

[Psyman79]

@Double V

No worries, thats what these forums are for

Yeah, defo better off with vehicle replacement as this will cover you for any price increases too. If this £32k car costs £34k to replace in a couple of years, RTI will only pay up to the £32k you paid, VR would pay up to £34k as thats what it now costs to replace your original car.

Price difference for a VR policy over RTI is only about £10 - £15 more over the term.

I'm with GAPInsurance123 who seem to differ slightly from ALA etc in that they wont insist on you ordering the same car, you can just take your payout and go elsewhere should you so desire.

Make sure you check with your actual car insurance too, some will cover you for a replacement car in the first year of its life so you can defer your GAP for a year. This is what i've done. I know Esure and Audi Insurance do this but not sure who else.

Si

 

[Bristle Hound]

@Double V

No worries, thats what these forums are for

Yeah, defo better off with vehicle replacement as this will cover you for any price increases too. If this £32k car costs £34k to replace in a couple of years, RTI will only pay up to the £32k you paid, VR would pay up to £34k as thats what it now costs to replace your original car.

Price difference for a VR policy over RTI is only about £10 - £15 more over the term.

I'm with GAPInsurance123 who seem to differ slightly from ALA etc in that they wont insist on you ordering the same car, you can just take your payout and go elsewhere should you so desire.

Make sure you check with your actual car insurance too, some will cover you for a replacement car in the first year of its life so you can defer your GAP for a year. This is what i've done. I know Esure and Audi Insurance do this but not sure who else.

Si

Don't forget too, ALA won't differ you first year unlike GAPInsurance123

 

[Double V]

@Psyman79 Thank alot.
@Bristle Hound Oh i see.

An other silly question. The price we get quoted is it for the whole 3/4 year term or based on per year ?

 

[Psyman79]

Price you get on the quote is for the full 3/4 years, should be about £150 - £170.

 

[15audis3]

FYI from April 1st Audi have changed their pricing on gap insurance. I got 3 years (£40K Value, upto £15K Reimbursement) for £179. Can't go wrong really.

 

[Psyman79]

FYI from April 1st Audi have changed their pricing on gap insurance. I got 3 years (£40K Value, upto £15K Reimbursement) for £179. Can't go wrong really.

Are Audi offering vehicle replacement now too then?

 

[Psyman79]

So it turns out that Admiral don't do vehicle replacement for the first year of a cars life

Just had to pull my deffered policy forward to start it from today.

 

[mjcourtney]

FYI from April 1st Audi have changed their pricing on gap insurance. I got 3 years (£40K Value, upto £15K Reimbursement) for £179. Can't go wrong really.

Really? Because I picked up my A3 on the 10th April and they still quoted £700, coming down to £350 when I mentioned my ALA quote of £200.

£350 was the minimum they could do. Needless to say I didn't take it.

 

[David83S3]

AHA ...This thread has just reminded me I need to do mine !!!

 

[A3Kent]

AHA ...This thread has just reminded me I need to do mine !!!

If you take it out with 123Gap then you've got 6 months after the date of collection to take out the policy. Worth bearing in mind if you are a bit tight for cash

 

[David83S3]

If you take it out with 123Gap then you've got 6 months after the date of collection to take out the policy. Worth bearing in mind if you are a bit tight for cash

Spot on!! I shall wait a while longer as I have just upgraded my home cinema system and cash flow needs another injection

 

[Dtwm1]

Spot on!! I shall wait a while longer as I have just upgraded my home cinema system and cash flow needs another injection

ALA is also 180 days after purchase. They also do a match and beat by 20% offer

 

[Double V]

ALA is also 180 days after purchase. They also do a match and beat by 20% offer

I collected my car on 31 March 2015. So I can wait 6 months ?
180 days on 31st March ?

 

[A3Kent]

I collected my car on 31 March 2015. So I can wait 6 months ?
180 days on 31st March ?

Yes.

Remember ALA do not defer the start by one year which isn't great if you have an insurer who already offers New Car Replacement as part of your insurance policy.

 

[A3Kent]

My 180 days is almost up so I called 123Gap and they also work under the name Total Loss Gap where they will let you take it out up to 365 days after you collected! I'll wait another 6 months then!

 

[Double V]

Yes.

Remember ALA do not defer the start by one year which isn't great if you have an insurer who already offers New Car Replacement as part of your insurance policy.

My normal insurance is with Allianz. Don't know if they offer vehicle replacement. ?

 

[Dtwm1]

I collected my car on 31 March 2015. So I can wait 6 months ?
180 days on 31st March ?

Yes so you have until 27/9 to take out cover although I would do it sooner as you don't know what will happen in the first 180 days.

 

[A3Kent]

My normal insurance is with Allianz. Don't know if they offer vehicle replacement. ?

Mine is too so I'd assume you have vehicle replacement

 

[A3Kent]

This is taken from my Allianz Policy Docs

Replacement car
If your car is;
stolen and not recovered within 28 days of you reporting the
theft to us; or
damaged to the extent that the cost of repair is more than
50% of the manufacturers last United Kingdom list price
(including VAT) of an identical new car at the time of loss
or damage;
we will, at your request, replace your car with a new one of
the same make, model and specification.
We will only do this if:
l we establish that the accident is not your fault and
l you are able to provide details of the other vehicle’s
make, model and registration number and the name and
address of the person driving the other vehicle.
l your car is a United Kingdom specification model bought
from one of the manufacturer’s authorised United
Kingdom dealers;
l we have your permission (or the hire-purchase
company’s permission) to replace your car; and
l the loss or damage occurs before your car is one year old
and the model is still available from the manufacturer’s
authorised United Kingdom dealers. If not, then we will
settle your claim by paying you the equivalent cost of
replacing your car with one of the same make, model
and specification.

 

[A3Kent]

Yes so you have until 27/9 to take out cover although I would do it sooner as you don't know what will happen in the first 180 days.

Not if he has the cover as part of his standard car insurance

 

[Dtwm1]

Not if he has the cover as part of his standard car insurance

Obviously.

Its also worth noting that some insurers that offer vehicle replacement in the first year do state that unless a similar vehicle can be sourced in X amount of weeks/days then they will revert to paying market value. As with the case with most A3 orders they take 12 weeks+ to arrive so unless a dealer as the right spec quickly you could still get paid market value.

 

[Minion Bob!]

I agree. Nothing is free.

If you got this for free without full knowledge then the sales manager who is usually regulated to sell such products with the FCA could be subject to disaplinary action for misselling an insurance product.

 

[Gazjs]

I have been looking at Gap123. They seem to be cheapest for what I need.

Everyone have good experiences with them so far?

 

[RO65ERS]

I'm probably the only person who didn't question GAP - i just took it out at the 500 the dealer wanted for it.

after in excess of 35-8k, what is 500 quid after all?

 

[S32B]

I'm probably the only person who didn't question GAP - i just took it out at the 500 the dealer wanted for it.

after in excess of 35-8k, what is 500 quid after all?

Around £300 more than you needed to pay for it

 

[Gazjs]

When looking at my order form, I am trying to work out what figure I need to use for the car value.

Should I do:

Finance due + balance + discount?

 

[MA3RC]

Just go with list price