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Gap Insurance.

Alex1975 said:
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.
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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.
 
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Alex1975 said:
Why would they not cover like for like? Read your insurance documents when applying for car insurance.
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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.
 
Liverpoolphil said:
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.
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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?)
 
Alex1975 said:
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?)
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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
 
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Alex1975 said:
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?)
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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?
 
Smiffy said:
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?
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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.
 
Alex1975 said:
100%, you buy a £10k car and finish making your payments as you would have if nothing had happened.
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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?
 
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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.
 
Alex1975 said:
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.
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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
 
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...
 
Alex1975 said:
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...
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Let us know when you make your first million bonehead.
 
Alex1975 said:
You have shamed yourself
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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!!
 
Smiffy said:
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???
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For me it is a scam for a car dealer charge £300 plus for it when it is readily available aftermarket for far less.
 
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