GAP Insurance
- Thread starter BigCat
- Start date
garyw
Moderator
I found that some insurance policies covered this on the second year too! I took a three year gap policy, so had to shop around in year two in order to find cover that didn't have it included- as I had bought a policy and the insurance renewal fee did reflect the cover.. Pretty much halved my insurance cost - but importantly the gap was return to Invoice (and enough cover to do so- as many only pay a max of 30K) where the insurance policy was replace.
I suppose a loss is a loss, irrespective of how the purchase was financed. I understand these are quite competitive http://www.mapfreabraxas.co.uk/gap
Adrian As Gary says some policies pay a new car replacement for the first 2 years. The policy I have with Aon Private Clients is one example; it is with Aviva and as far as I am aware there was no "additional" premium for the second year. Maybe wrongly I have viewed GAP insurance as only relevant if you are buying the car with finance, which I tend not to do, so haven't really considered it. But beyond year two the delta between new and market price continues to increase albeit maybe at a slower rate, so it is interesting that Gary found GAP cover for this and I wonder what the premium is. I did suggest to the DP that the optimum result would be to take out the GAP insurance and write the car off on the way to trade in at the end of year three. He smiled bleakly.
dereksharpuk
New member
Given that gap insurance is designed to pay the difference between the cost of a new car and the value of yours at the loss, I wonder how that all works with a Macan that retails second hand higher than list? Moreover, I wonder how easy it is to replace a written-off Macan with a new replacement within a week or so.
I have GAP insurance on our three cars. The oldest a Disco 4 which is now 5 years old had had GAP insurance renewed regularly. It pays up to 25K or the new invoice price whichever is the lowest on total loss of the car. Cost me £127 on its 5th birthday which I thought was pretty good. Hope we don't need it. The rates are very competitive try them GapInsurance.co.uk run by a company called Frank Pickles.
garyw
Moderator
This is who my package is with- they also do tyre and rim protection [
] I saved about £1100 on my second years car insurance renewal as the policy didn't cover RTI and only paid market value. As mentioned this wasn't required as I already have cover, my policy has a much higher maximum pay-out - which is sadly needed following the residuals mine hit! I hope I never need it, but you can't help other road users can you..[]
Has anyone on here experience of claiming on one of these policies to know if there are any practical issues about claims? Do they turn into a bun-fight between regular insurer of the car and the gap insurer? Are there exclusions / get out clauses? What evidence do they need? I've always wondered why someone would in effect insure you for depreciation?
Isn't it is like household contents cover where you can get New for old contents insurance which replaces items at today's equivalent price versus Indemnity cover which takes into account the wear and tear of the item, so cover is for the cost of replacing it as is.
It is indeed a layer. An interesting aspect is a conflict of interests between indemnity value and invoice value insurers.
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