Gap Insurance.

[Alex1975]

So what happens when the insurance company don't replace like for like or pay out the full amount to cover the finance ?

Why would they not cover like for like? Read your insurance documents when applying for car insurance.

 

[Deleted member 18588]

Yes you will still have outstanding finance but you would have if the vehicle was not written off or stolen so nothing has changed. You have a car worth the same second hand price and x payments left to pay.

But if the car is written off at a value of, say, £12,000 but the outstanding PCP value is, say, £15,000 who funds the shortfall of £3,000. (The preceding figures are approx but are based on a real case).

After 12 months "like for like" is most unlikely.

 

[Deleted member 15344]

Why would they not cover like for like? Read your insurance documents when applying for car insurance.

They didn't for me - they gave me their valuation of the car and then I was left with a big gap with the finance left

So the question is still valid - what happens when the valuation still leaves you with finance to pay off.

 

[Alex1975]

They didn't for me - they gave me their valuation of the car and then I was left with a big gap with the finance left

So the question is still valid - what happens when the valuation still leaves you with finance to pay off.

They gave you enough money to buy a new car that would be the same value as if you had sold your written off/stolen car that same day (the day of the theft or accident?)

 

[Deleted member 15344]

They gave you enough money to buy a new car that would be the same value as if you had sold your written off/stolen car that same day (the day of the theft or accident?)

Sorry but no they didn't give me enough money to purchase the exact same car in the exact same condition because the money they gave was closer to the trade valuation. I don't think I have ever heard an insurance fully pay out or even replace like for like ( especially on any car over 6 months old )

Look you don't like Gap Insurance - fine but it has been good for me for a small cost and it's worked , it's not a scam , I wasnt pressured into anything and it helped me when my car was written off. I know that if something happened to my car and it was written off then the gap Insurance would enable me to ensure I wasn't left with any finance after an insurance pay out.

It seems reading all the money expert websites gap Insurance is recommended dependant on what car you buy - so not a scam


https://www.moneyadviceservice.org.uk/en/articles/do-you-need-gap-insurance

 

[Smiffy]

They gave you enough money to buy a new car that would be the same value as if you had sold your written off/stolen car that same day (the day of the theft or accident?)

I don't know what your understanding of motor insurance is, but there is not one insurance company going that would replace a brand new £25k car with another brand new £25k car two years into a policy. Some insurance companies replace a brand new car within the first 12 months, but NONE would do it after two.
So just to reiterate and to point it out in simple "car sales speak"......
You buy a brand new £25k BMW and 33 months later you write it off.
Your insurance company will offer you around £12k if you are lucky, more likely £10k.
You are now the proud owner of a cheque for £10k but don't have a car.
So to replace your nice shiny motor you have now got to stump up £15k on top of your insurance companies cheque.
If you had taken out GAP insurance, you would have two cheques. One for £10k from your insurance company and the other for £15k from the GAP payout.
Going into a BMW dealer and ordering a new car is going to cost you chuff all.
I hope that makes sense?

 

[Alex1975]

I don't know what your understanding of motor insurance is, but there is not one insurance company going that would replace a brand new £25k car with another brand new £25k car two years into a policy. Some insurance companies replace a brand new car within the first 12 months, but NONE would do it after two.
So just to reiterate and to point it out in simple "car sales speak"......
You buy a brand new £25k BMW and 33 months later you write it off.
Your insurance company will offer you around £12k if you are lucky, more likely £10k.
You are now the proud owner of a cheque for £10k but don't have a car.
So to replace your nice shiny motor you have now got to stump up £15k on top of your insurance companies cheque.
If you had taken out GAP insurance, you would have two cheques. One for £10k from your insurance company and the other for £15k from the GAP payout.
Going into a BMW dealer and ordering a new car is going to cost you chuff all.
I hope that makes sense?

100%, you buy a £10k car and finish making your payments as you would have if nothing had happened. I think the reason we are not seeing one another's point is that yall have a different value system as far as depreciation. You want your cake and eat it and your happy to pay for that. I am not a gambling man so not happy to do so.

 

[Smiffy]

100%, you buy a £10k car and finish making your payments as you would have if nothing had happened.

You can't !!!
If you had the car on finance and it was written off, you have to pay the finance balance outstanding immediately. You cannot carry on paying for it.
So if you actually owed £12k you would have to stump up another £2k of your own money.
Is it so difficult to understand?

 

[Alex1975]

Perhaps on the finance product you provide... calm yourself down, its a scam and your defence of it is worrying. Your industry needs to sort its self out.

 

[Smiffy]

Perhaps on the finance product you provide... calm yourself down, its a scam and your defence of it is worrying. Your industry needs to sort its self out.

So you are telling me I'm getting hire purchase regulations wrong now are you?

 

[Deleted member 15344]

100%, you buy a £10k car and finish making your payments as you would have if nothing had happened. I think the reason we are not seeing one another's point is that yall have a different value system as far as depreciation. You want your cake and eat it and your happy to pay for that. I am not a gambling man so not happy to do so.

If your car is written off and you have outstanding finance the insurance pay out im pretty sure goes to the finance company not the person so you are left with no car , no money and outstanding finance still to pay

 

[Alex1975]

Lots of people offer finance products that are many and varied, if you need something called gap insurance I would suggest you picked the wrong product for your asset.... Feel free to just take what the car garage offers you but there are people who`s actual job it is to sell financial products. They don't sell cars on the side either... we call them banks, funders or finance professionals. And on this topic I am done as some of you seem to be indoctrinated into taking what the first person offers and then taking insurance to cover the short falls in said product...

 

[Smiffy]

If your car is written off and you have outstanding finance the insurance pay out im pretty sure goes to the finance company not the person so you are left with no car , no money and outstanding finance still to pay

He is a financial whizzkid Phil.
There's nothing you can tell him.

 

[Smiffy]

Lots of people offer finance products that are many and varied, if you need something called gap insurance I would suggest you picked the wrong product for your asset.... Feel free to just take what the car garage offers you but there are people who`s actual job it is to sell financial products. They don't sell cars on the side either... we call them banks, funders or finance professionals. And on this topic I am done as some of you seem to be indoctrinated into taking what the first person offers and then taking insurance to cover the short falls in said product...

Let us know when you make your first million bonehead.

 

[Alex1975]

He is a financial whizzkid Phil.
There's nothing you can tell him.

You have shamed yourself and furthered a stereotype.... You don't need to be a wizard, you just don't need to be an idiot.

 

[Smiffy]

You have shamed yourself

I know. I doubt whether I will sleep very well tonight, and dread walking through the town over the week-end.
My children already disown me and I expect I will be drummed out of the golf club.
And I think if anyone has shown themselves up to be an idiot it's you mate.
A new car for old after two years with a car insurance company.... hahahahaha!!

 

[Oxfordcomma]

Don't know about anyone else but I'm now fully expecting Smiffy to turn up to the next meet with a shirt like this

 

[Blue in Munich]

Don't know about anyone else but I'm now fully expecting Smiffy to turn up to the next meet with a shirt like this
View attachment 22023

Nah, Gapgate just hasn't got the same ring to it…………….

 

[Smiffy]

Don't know about anyone else but I'm now fully expecting Smiffy to turn up to the next meet with a shirt like this
View attachment 22023

I'll buy a couple of dozen of those out of my next GAP insurance commission.

 

[KenL]

Why the "lol"???
You think it is a scam, I'm telling you it's not.
Nowhere if my responses have I said you have to buy it from the dealer.
You have a choice whether to go for it or not.
How about the case I mentioned above about the elderly couple?
How do you think they felt when they got £8,500.00 back instead of £3,500.00???

For me it is a scam for a car dealer charge £300 plus for it when it is readily available aftermarket for far less.