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Buying a '66 plate car? Bought a car in the last 12 months? Have you got GAP insurance sorted?


David@GAPInsurance

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If you've bought a car in the last 12 months or are buying a new '66 plate car on/from September 1st, you need to consider GAP insurance.

In the event that your vehicle is written off as a result accident, fire, theft, flood etc, your Motor Insurer will only pay you what they deem the vehicle to have been worth at the time of loss. GAP insurance steps in as follows:

Invoice GAP Insurance (See here)

Aims to pay the difference between your Motor Insurance payout and the greater of either:

  1. The amount outstanding on finance at the time of claim (if any), OR
  2. The original invoice price that you paid for the vehicle.

Replacement GAP Insurance (See here)

Aims to pay the difference between your Motor Insurance payout and the greater of either:

  1. The amount outstanding on finance at the time of claim (if any), OR
  2. The original invoice price that you paid for the vehicle, OR
  3. What it would cost at the time of claim to replace your vehicle with a brand new (assuming you bought the vehicle brand new) version of the same (or nearest equivalent) vehicle at the time of claim - even if the replacement vehicle costs more than you bought the vehicle for first time around.

Our Prices:

Our prices are up to 85% cheaper than those of a Motor Dealer and BRISKODA members get a further 10% discount!

Cover Features:

  • Available for new or used cars bought up to 12 months ago
  • Available for cars bought for up to £150,000
  • Claim Limits of up to £100,000 available
  • Durations of 1, 2, 3, 4 or 5 year
  • Defer the start date (1-4 year policies only) by up to 1 year if you have New-For-Old cover with your Motor Insurer (read this first)
  • No Cancellation / Transfer or Admin Fees if you need to make changes to or cancel your policy
  • Daily pro-rata rebates if you cancel your policy early
  • Upon expiry policies can be renewed for a further either 12 or 24 months
  • Invoice or (superior) Replacement GAP insurance available for both new and used cars
  • Replacement GAP insurance with "Invoice Price Protection" (in case the replacement price of the vehicle has fallen by the time of claim)
  • Cash payouts (we won't force you to spend the amount paid out on any particular vehicle from any particular dealership)

Use discount code "BRISKODA10" to save 10%

 

See: www.gapinsurance.co.uk or call 01943 850999 for more details.

Edited by David@GAPInsurance
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Hi David@GapInsurance

I am waiting on my order for a Skoda Octavia, September delivery & interested in your product.

Can I ask *think like you are speaking to a 5 year old*, the replacement gap product is a higher/better cover than return to invoice for a new £25k car ?

I do not have my reg number or delivery/hand over date yet so just planning ahead.

Any advice appreciated.

Steve.

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Your a funny guy Dave & for that alone you're worth a punt for this Superhero Insurance, so I will contact you to set up my product when the time comes (very soon now).

Beware, I overheared Wonder Woman *when playing on the swings* complaining that you left out the girls & she is planning on taking you court for Superhero Discrimination ....

Have a great day, speak soon.

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Hi Steve,

 

I've never tried to explain it to a 5-year old... perhaps I should try with my 2nd-youngest (who IS 5) and see how I get on... here goes:

 

If you buy an ice-cream (car) for £1.50 that should have been £1.80 (but you had a discount code from your box of Coco-Pops) then, when you'd only eaten half of that ice-cream (making it worth about £0.75p), you accidentally smashed it to bits on a tree that you were trying to run past, our super-heroes who really love ice-creams will help you out as follows:

 

Batman (Invoice GAP) will aim to pay you the difference between the £0.75p that your remaining ice-cream was worth just before you smashed it in to the tree (the amount paid out by your motor insurer) and the £1.50 that you bought it for (the price you paid after discount). Meaning you can go and get another ice-cream for £1.50.

 

Superman (Replacement GAP) will aim to pay you the difference between the £0.75p that your remaining ice-cream was worth and, the £1.80 full price of replacing it with another of the same ice-creams.  If those ice-creams are no longer available and the nearest equivalent now has a flake in it and costs £2.00, he'll aim to pay you the additional £0.20p too!

 

It gets a little more complicated though if you originally borrowed some of the original £1.50 from an evil villain like the Green Goblin, because he'll probably want you to pay him some of what you borrowed, back.  In which case, you'd take the £0.75p that your ice cream was worth (paid out by your motor insurer) add it to the amount of money paid out by either Batman or Superman, then pay the Green Goblin back the amount that you owe him and the amount of money you're left with is yours to put towards the cost of buying another ice-cream.

 

I hope this helps... though I fear this thread may now turn in to a debate about who's better: Batman or Superman!

 

What would happen if the Ice Cream came with a free Chocolate Flake, you hadn't eaten any but it was damaged when you crashed into the tree.

 

The free flake offer has expired so could you claim a new one off Batman or Superman or should you have informed Green Goblin about the free " fitted Extra " at the point of sale

 

 

Very Confusing   :notme:

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Your a funny guy Dave & for that alone you're worth a punt for this Superhero Insurance, so I will contact you to set up my product when the time comes (very soon now).

Beware, I overheared Wonder Woman *when playing on the swings* complaining that you left out the girls & she is planning on taking you court for Superhero Discrimination ....

Have a great day, speak soon.

 

I'm married to a Barnsley Lass... Wonder Woman and her idle threats don't scare me any more! :-)

 

Give me a shout when you're ready to discuss further.

 

What would happen if the Ice Cream came with a free Chocolate Flake, you hadn't eaten any but it was damaged when you crashed into the tree.

 

The free flake offer has expired so could you claim a new one off Batman or Superman or should you have informed Green Goblin about the free " fitted Extra " at the point of sale

 

 

Very Confusing   :notme:

 

 

If the ice-cream originally came with a free chocolate flake, it'd likely be detailed on your invoice for that ice-cream (there's always an invoice for these types of ice-creams :D).

 

However neither Batman nor the Green Goblin are going to be too fussed about the intricate reasoning behind the purchase price you paid for the original ice-cream, as they're really just all about the money: The Green Goblin, simply wants his money back along with whatever applicable interest and charges you committed to pay him.  At his simplest level, Batman is simply concerned about getting you back to the price that you originally paid for the ice-cream.

 

Superman on the otherhand, isn't so fussed about the money per-se, he's interested in specifically WHAT, you bought first time around (including the full original specification).  Thus, if your ice-cream originally included a chocolate flake (whether that was provided FOC or you paid a premium for it), when he's calculating the difference between what your ice-cream was worth when you smashed it in to the tree and the cost of replacing it with a new equivalent ice-cream of the same or nearest equivalent specification, his calculated cost of the new ice-cream will naturally take in to account the supply of a chocolate flake too.

 

In my previous example I was trying to suggest that the chocolate flake might have been an original option but, by the time you smashed your ice-cream in to a tree, it might have been promoted to a standard feature.

 

Less confusing? :notme:

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David. My wife is picking up her new A3 Cabriolet s line on Saturday. I get the difference between finance, rti and replacement, but how the feck am I supposed to know what max claim limit I should go for?

Invoice price is £31420. Amount of credit is £23520. PCP for 4 years with total to pay = £36394.

Thanks

Matt

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David. My wife is picking up her new A3 Cabriolet s line on Saturday. I get the difference between finance, rti and replacement, but how the feck am I supposed to know what max claim limit I should go for?

Invoice price is £31420. Amount of credit is £23520. PCP for 4 years with total to pay = £36394.

Thanks

Matt

If £31,420 is the invoice price paid, how much was the full list price? E.g. Was the £31,420 AFTER discount and if so, how much discount?

Also, at the end of the PCP, there's a balloon/residual value payment to make if you want to keep the car... How much is that?

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If £31,420 is the invoice price paid, how much was the full list price? E.g. Was the £31,420 AFTER discount and if so, how much discount?

Also, at the end of the PCP, there's a balloon/residual value payment to make if you want to keep the car... How much is that?

Recommended on the road price is £32120.

Discount - £800

Cash Price £31420

Audi finance Contribution - £3400

Our Deposit - £4500

Amount of credit £23520

GFV £13751.25

Does that help?

Edited by mattsv
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Recommended on the road price is £32120.

Discount - £800

Cash Price £31420

Audi finance Contribution - £3400

Our Deposit - £4500

Amount of credit £23520

GFV £13751.25

Does that help?

 

OK so it's not the most scientific way to approach calculating a prudent Claim Limit... but it's a start. Here goes:

  • If we deduct the £13,751.25 GFV from the £31,420 Invoice/Cash price, the resulting figure is £17,668.75.
  • If we deduct the £13,751.25 GFV from the £32,120 List price, the resulting figure is £18,368.75.

One way of looking at these figures is that the finance company are expecting the vehicle to depreciate by as much as £17,668.75 from the original cash price and/or up to £18,368.75 from today's list price.

 

So... my advice would be that it's never a good idea to bet against the finance company in this respect so, you need to be looking at a Claim Limit no lower than the figures that the finance company have predicted.  In this case, for both Invoice and Replacement GAP insurance you'd be looking at a minimum £20,000 Claim Limit (because the next level down is £17,500 and this would be lower than both figures calculated by the finance company).

 

Do you need a Claim Limit higher than £20,000?

 

My answer would be "possibly" with Invoice GAP insurance... but "probably" with Replacement GAP insurance.

 

I say this because we (in terms of the claims that go through on our policies) see cars having depreciated by anything between 50% and 70% over three years.  In this case your finance company are predicting depreciation of 56% (from the original cash price) and/or 57% over four years.

 

The figures from the finance company are no guarantee as to how the vehicle will actually depreciate (it could of course end up better (lower) or worse (more)).  But... it's probably fairly safe to assume that if they're only predicting 56-57% over four years it's probably unlikely you'll suffer from considerably worse depreciation but, there's no harm in trying to protect against that just in case.

 

In terms of Invoice GAP insurance and a £20k Claim Limit, the £20k limit represents depreciation of up to 63.6%.  Whether you'd need more is debatable.

 

In terms of Replacement GAP insurance, a £20k Claim Limit represents depreciation of up to 62.2% of today's list price BUT... what's key to remember with replacement GAP insurance is that it's the list price of the new equivalent vehicle at the time of claim that's relevant and of course it's likely that at some point over the next 4 years the list price of the new equivalent will increase.  So if you factor in the potential for the list price to increase AND for your vehicle to depreciate worse/faster than the finance company have predicted, it wouldn't take a huge movement in either case for the "gap" in the event of a late claim (e.g. towards the end of the 4th year) to exceed £20k. So, my advice would be to stick with the next level up which is a £25k Claim Limit for Replacement GAP insurance. This represents 77% of today's list price and in theory at least, should be ample.

 

All of the above is clearly based on the assumption that you want a GAP insurance policy to run for 4-years as per the duration of the PCP agreement.

 

Prices as follows:

 

Invoice GAP:

 

4yrs £20k @ £174.60

4yrs £25k @ £181.53

 

Replacement GAP:

 

4yrs £20k @ £200.46

4yrs £25k @ £219.49

 

(Note the prices above are arrived at AFTER applying your forum discount (10%) using code "BRISKODA10")

 

Does that help?

 

PS: if you want rates for shorter/longer durations and/or higher/lower claim limits, just ask, or check them out at www.gapinsurance.co.uk.

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