I used this code the other day when I bought it for my R and it worked.
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.
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.
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.
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.
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.
www.adrianflux.co.uk
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.
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.
