Shameless plug... we sponsor this forum and forum members get 10% discount off our full prices!  See www.gapinsurance.co.uk :-)

Shameless plug... we sponsor this forum and forum members get 10% discount off our full prices!  See www.gapinsurance.co.uk :-)

Can you provide evidence of a successful claim.

Thanks guys, yea i went with Skoda in the end. They were looking £220 so the dealer said. I said no thanks i was quoted £150 with other:

About an hour after i got home dealer rung up and i was good to go with a price in the middle. Amazing how they can chop the price when you refuse them. Wonder how many just say yes..

 

If you were happy with the end price you got, that's good, but sadly you'll still have overpaid for it.  There's still time to cancel within your cooling off period and buy a much cheaper (and superior) policy elsewhere.

 

I have asked this many times and even of the well known Gap Insurance provider on the OTHER Skoda forum.

 

Has anyone ever had to use GAP and what was the outcome.

 

I have not read a reply yet...even from the Insurance provider who could only say his was cheaper.

 

I opted for the Skoda GAP at purchase. The sales guy provided one example where a vehicle was flooded and the owner received the vehicles full, new, value.

 

We publish our claim data - so far as I know we're the only GAP insurance provider to do so.  See either www.gapinsurance.co.uk/invoice-gap-insurance.asp or www.gapinsurance.co.uk/replacement-gap-insurance.asp (scroll to the bottom for each).

 

At the end of the day for what might be up to £500 one off payment it's worth the extra security of "if the worse case happens" i.e. £500 for what could be the difference of up to £10k!

 

£500 for GAP insurance is insane

 

For circa £500 we'd be looking to cover a vehicle bought for a sum in excess of £100k, with Replacement GAP insurance over 5 years!

 

What info do you need to buy the insurance? I only have a build date and I'm conscious of running out of time before I go away to sea, (poor timing on my part) I just want to have everything lined up so my wife can just take delivery of the motor.

 

For our policies, aside from your contact details, in order to purchase a policy, we need to know:

• Vehicle Make
• Vehicle Model
• Vehicle Derivative (the specific version of that model)
• Invoice Price
• Date of First Registration
• Date of Delivery
• Funding Method
• Mileage Reading (normally just 1-2 for a new car)

You *can* purchase in advance with estimated/anticipated info if you need to, (and then update later - at no cost) but we don't recommend doing so more than two-weeks prior to the expected delivery date.

 

In any case, the purchase process only takes a few minutes from start to finish and the policy can be live and active etc immediately at the end of that process (unless you choose to delay the start date at all - e.g. if you have New-For-Old cover via your Motor Insurance for the first year, and you're happy with it, you might choose to delay the start date by up to 12 months from when the vehicle was first registered).

 

Read you insurances T&C's some have like for like replacement on new cars.

Also it doesn't have to be at the point of collection but within a set amount of time, IIRC it's at least a month after point of handover (sale).

You can also do it online should you prefer that way.

Again Read the T&C's

 

We allow people to buy either Invoice or Replacement GAP insurance up to 12 months after taking delivery of their vehicle.

 

As you point out, some Motor Insurance policies cover a brand new vehicle on a new-for-old basis during the first year so it's not always necessary to have GAP insurance in the first year... but... some New-For-Old schemes are very good and others are a waste of space.  See here for things to look out for: http://blog.gapinsurance.co.uk/index.php/2015/02/23/the-perils-of-new-for-old-cover/

 

I have just said yes to my skoda dealer £299 for three years return to invoice.

 

£299 is absurdly high still.  Get a quote from us at www.gapinsurance.co.uk and remember that you'll pay 10% less (you'll need to buy over the phone to get the discount).

 

Don't forget some insurers will replace a car with new within the first year - so the first year of your gap insurance is worthless - the year when the numbers are biggest and scariest.

 

The first year of GAP Insurance is often far from worthless due to the fact that (as I've said above) some Motor Insurance new-for-old schemes are, well, rubbish (see: http://blog.gapinsurance.co.uk/index.php/2015/02/23/the-perils-of-new-for-old-cover/).

Incidentally, the logic that the first year is the "year when the numbers are biggest and scariest" is completely incorrect when it comes to Invoice or Replacement GAP insurance.

 

To clarify, in the event of your vehicle being declared a Total Loss ("written off"):

 

Our Invoice GAP insurance policy...

 

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

• The original invoice price that you bought the vehicle for, OR
• The amount (if any) outstanding on finance at the time of claim

Our Replacement GAP insurance policy...

 

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

• The cost of replacing your vehicle with one of the same Make, Model, Specification, Age and Mileage (or nearest equivalent) as your original vehicle was at the time you first bought it, OR
• The original invoice price that you bought the vehicle for, OR
• The amount (if any) outstanding on finance at the time of claim

Thus, the "gap" gets larger as time goes by therefore the numbers are technically at their "biggest and scariest" at the very end of the policy (we provide cover for up to 5-years) when the current value of your vehicle has depreciated furthest from its original purchase price.

 

I hope that all makes sense and if anyone has any further questions about GAP insurance I'd be very happy to help.

 

Best wishes

 

David

Can you provide evidence of a successful claim.

 

Yes... our previous replies crossed... for clarity:

We publish our claim data - so far as I know we're the only GAP insurance provider to do so.  See either www.gapinsurance.co.uk/invoice-gap-insurance.asp or www.gapinsurance.co.uk/replacement-gap-insurance.asp (scroll to the bottom for each).

I have just said yes to my skoda dealer £299 for three years return to invoice.

It's only £150 per year (forget the first year) and when looked at in that way well worth the money.

£500 is what I've heard from friends direct from the dealers. And yes that is shocking.

IIRC my cover on my mk2FL was through your company

It's only £150 per year (forget the first year) and when looked at in that way well worth the money.

 

nicowalker85 - according to other posts in this forum, you've ordered an Octavia SE-L (for the sake of this price comparison I'm assuming "hatch" and manual) with Silver Rails, Sunset Glass, Winter Pack and Smart Link.

 

Looking this up online I got to a list price of £22,970 and couldn't quickly find prices for the Silver Rails, Winter Pack and Smart Link.

 

Let's assume with everything in, the full list price was circa £24k (you may or may not have received discount off the full list price but that's irrelevant at this stage - unless the discount brought your purchase price down less than £15k (in which case our policies will be cheaper still)).

 

Based on a vehicle bought for £24k, we'd be able to provide you with the following GAP insurance options:

 

3yr duration, £20k Claim Limit (you almost certainly wouldn't need this much, but many motor dealer policies have a £20k limit so I'm including this as a reference point - note that we can supply policies for up to 5-years ):

• Invoice GAP insurance = £110.25 less 10% forum discount = £99.22
• Replacement GAP insurance = £161.78 less 10% forum discount = £145.60

 

Under no circumstances should £299 for a 3-year Invoice GAP insurance policy EVER be considered "worth the money".  It's the dealer overcharging for it and hopefully, is a practice that will be curtailed when the new laws covering Motor Dealer's selling of GAP insurance come in to force on September 1st this year.

 

Also, as I've said in earlier posts, never "forget the first year" (this is a dangerous game) unless you have thoroughly investigated your Car Insurance policy to determine:

1. That it provides New-For-Old cover in the first year
2. That their New-For-Old cover is actually any good (too many aren't)

See here for more details.

 

For clarity, with those prices above, you could purchase a policy for £99.22 and have it start immediately to cover years 1, 2, and 3.  Or, if you have got New-For-Old cover from your Motor Insurance and (having checked) you're happy with it, you could purchase a policy for £99.22 and have the start date delayed so that it covers years 2, 3, and 4 at no additional cost. Or of course you could wait and buy the GAP insurance towards the end of the first year and perhaps then just for years 2 and 3 etc - although there may be some price changes over the next 12 months)

 

You have plenty of options, but it's not something you should approach without due-consideration.

 

(The prices quoted in this email are based on a vehicle purchased for £24k a 3yr policy duration and £20,000 Claim Limit. Valid for next 30-days.)

Anyone opt for Skoda's own 3 year GAP insurance?

What did you get quoted?

Cheers

I bought my own, which was much cheaper and allowed me to push the cover back 12 months to account for the new car replacement cover my insurance policy provided.

I paid £101 for 3 year Return to Invoice with 123gapinsurance.

 

I forget exactly what sum the dealer quoted for Skoda gap but I nearly fell over laughing. It was close to £300 I think.

I paid £101 for 3 year Return to Invoice with 123gapinsurance.

 

I forget exactly what sum the dealer quoted for Skoda gap but I nearly fell over laughing. It was close to £300 I think.

 

Out of interest... what was the invoice price of your car and what policy claim limit did you choose?

Incidentally, the logic that the first year is the "year when the numbers are biggest and scariest" is completely incorrect when it comes to Invoice or Replacement GAP insurance.

 

 

David - I disagree - I was correct in what I said, you have changed what I said, then said I'm wrong

e.g., "You said "the sky is blue" but you are completely incorrect when it's midnight."

 

 

The real big scary number is the difference between the replacement cost for the vehicle and the amount that an insurer would give you for a write-off. This gap is greatest earliest in it's life.

I think what we are disagreeing over is terminology

 

My Gap = difference between payout and value

 

Your Gap = difference between payout and brand new replacement.

 

 

 

I had gap but thought it was a straightforward case against the other party as they hit me in a queue, so didn't contact them. Then MY ins assessor started saying my one year old car was going to get a new body shell,tailgate, front wing,bonnet,back doors etc etc as it was cheaper. I said I'm getting my gap company involved. He changed his mind and ordered a new car. Recon he knew he was going to have a fight on his hands. So it was worth it for me even though I didn't use it.

 

Incidentally, the logic that the first year is the "year when the numbers are biggest and scariest" is completely incorrect when it comes to Invoice or Replacement GAP insurance.

 

 

David - I disagree - I was correct in what I said, you have changed what I said, then said I'm wrong

e.g., "You said "the sky is blue" but you are completely incorrect when it's midnight."

 

 

The real big scary number is the difference between the replacement cost for the vehicle and the amount that an insurer would give you for a write-off. This gap is greatest earliest in it's life.

I think what we are disagreeing over is terminology

 

My Gap = difference between payout and value

 

Your Gap = difference between payout and brand new replacement.

 

 

I think perhaps one of us is entirely misunderstanding the other's point.

 

If I buy a car for say £28k then it's declared a Total Loss very early in my ownership of it and it's value (according to say Glass's Guide) was say £24k.  I would be expecting my Motor Insurer (assuming they're not replacing it New-For-Old) to be paying out in the region of £24k for it.  They are afterall obliged to pay me a sum of money that would allow me to purchase a vehicle of the same age, mileage and condition as was applicable to my (now written-off) vehicle immediately prior to the incident that led to it being declared a write-off. If they found a reason to only pay out £22k for it, assuming I understand your logic correctly, you're saying that the £2k difference between my Motor Insurer's payout of £22k and the Glass' Guide Retail Value of my vehicle at £24k, is scary.

 

My argument is that the £6k difference between my Motor Insurer's payout and the £28k original purchase price is, well, "scarier" :-) (In theory this £6k shortfall would be covered by an Invoice GAP insurance policy)

 

If we use this same logic and go for a much later claim (i.e. I've owned the vehicle for a longer period of time)...

 

The same car I bought for £28k is declared a Total Loss when it's worth say, £10k.  I'd be expecting my Motor Insurer to be paying out circa £10k for it.  If they found a reason to only pay £8k for it (again assuming I'm understanding your logic correctly), you're saying that the £2k difference between my Motor Insurer's payout and the £10k value of my car is scary. 

 

My argument is that the £20k difference between my Motor Insurer's payout of £8k and the £28k original purchase price is, well, considerably more scary than a £2k shortfall and scarier still is the prospect that to buy a brand new version of the same car again might well now be higher than the £28k I originally paid (The £20k difference theoretically being covered by an Invoice GAP insurance policy and any further increase in the brand new replacement cost theoretically being covered by a Replacement GAP insurance policy).

 

 

Putting it another way, at any given time (with the exclusion of some finance agreements and most Contract Hire agreements) an early claim would involve (specifically in relation to any difference between the value of the car and the Motor Insurer's payout) relatively low figures because, regardless as to whether your car is worth £24k or £4k your Motor Insurer (short of a New-For-Old claim or Agreed Value policy) is only obliged to pay what your car is worth.  Of course they'll try to low-ball you as we all know, but even so any difference between the value (either market driven or in reference to one or more industry guides) and what they actually pay out is not likely to be considerable.

 

Ultimately though, this is a conversation about GAP insurance and you stated that the first year involved the biggest and scariest numbers, this IS incorrect from an Invoice or Replacement GAP insurance perspective because the numbers get bigger and more scary as time goes by (from the perspective that NOT having GAP insurance would see your potential financial shortfall increase as times goes by).

 

If I've misunderstood your point, I apologise - though if I have, perhaps you could clarify your interpretation of the "difference between payout and value"?

I negotiated a substantial discount when I bought my new Yeti, and a return to invoice GAP policy could well leave me out of pocket if I was unable to negotiate a similar discount on a replacement car. After speaking to David above, I opted for a 5 year Replacement GAP policy with claim limit of £20,000 which covers the financial difference between the motor insurer's settlement figure and the greater of either what it would cost to buy a replacement vehicle of the same make, age, mileage and specification as my Yeti when I bought it, or the original purchase price as confirmed by the Net Invoice Selling Price. That is vastly superior cover to Skoda GAP insurance I have had in the past, is for a significantly longer period, and was at a very competitive premium.

Skoda garage wanted £399 through AMS for return to invoice for 3 years.

 

I Paid £69 for exactly the same cover through gapinsurance123.co.uk

 

Massive mark up for dealers. That's why they push it so much! Same goes for so-called paint protection at a similar price (would you pay someone £399 to wax your car?)

Wife picks up vrs estate in 2 weeks.  Dealer quoted £400 with £100 off.

gapinsurance123.co.uk quoted £182. combined vehicle replacement/return to invoice. So she gets the price of a new car, whatever the cost.

car on PCP £27k. 4year gap cover.

Much cheaper and better cover

Wife picks up vrs estate in 2 weeks.  Dealer quoted £400 with £100 off.

gapinsurance123.co.uk quoted £182. combined vehicle replacement/return to invoice. So she gets the price of a new car, whatever the cost.

car on PCP £27k. 4year gap cover.

Much cheaper and better cover

 

Are you sure you've understood that correctly? The Gap123 website quotes: £182 for their Invoice GAP insurance policy ("Pays the difference between the Motor Insurers Settlement on the day it is written off, and the invoice price you paid or amount outstanding on finance which ever is the higher") and £214 for their Replacement GAP insurance policy ("Pays the difference between Motor Insurers Settlement at the point of loss and the cost of replacing it with another vehicle matching the vehicles original specification age and mileage or amount outstanding on finance which ever is the higher").

 

I just took this screenshot (the red circles are my own doing :-))

 

 

Incidentally and by comparison, after your BRISKODA forum-member discount, our prices would be:

Invoice GAP insurance, 4yr, £20k Claim Limit = £169.02

Replacement GAP insurance, 4yr, £20k Claim Limit = £194.05

 

I negotiated a substantial discount when I bought my new Yeti, and a return to invoice GAP policy could well leave me out of pocket if I was unable to negotiate a similar discount on a replacement car. After speaking to David above, I opted for a 5 year Replacement GAP policy with claim limit of £20,000 which covers the financial difference between the motor insurer's settlement figure and the greater of either what it would cost to buy a replacement vehicle of the same make, age, mileage and specification as my Yeti when I bought it, or the original purchase price as confirmed by the Net Invoice Selling Price. That is vastly superior cover to Skoda GAP insurance I have had in the past, is for a significantly longer period, and was at a very competitive premium.

 

Aha, now we are talking... I too got a deep discount and wouldn't want to fail to get the same deal again after an insurance payout.

David - sounds like you may be onto something there I may be in touch.

Are you sure you've understood that correctly? The Gap123 website quotes: £182 for their Invoice GAP insurance policy ("Pays the difference between the Motor Insurers Settlement on the day it is written off, and the invoice price you paid or amount outstanding on finance which ever is the higher") and £214 for their Replacement GAP insurance policy ("Pays the difference between Motor Insurers Settlement at the point of loss and the cost of replacing it with another vehicle matching the vehicles original specification age and mileage or amount outstanding on finance which ever is the higher").

 

I just took this screenshot (the red circles are my own doing :-))

 

Gap123.PNG

 

Incidentally and by comparison, after your BRISKODA forum-member discount, our prices would be:

Invoice GAP insurance, 4yr, £20k Claim Limit = £169.02

Replacement GAP insurance, 4yr, £20k Claim Limit = £194.05

 

It was wife who spoke to them (her car) she said they deal with 4 different companies and guarantee to be the cheapest (what ever) its with UK General and called combined vehicle replacement. SO you get a new car no matter when the claim is. Correct me if she wrong...she a women so never wrong

David

I have your company's gap insurance on my wife's Fiat Panda and need to get something sorted out for my Rapid (1 yr old at purchase, took delivery about a month ago). How do I get the Briskoda discount? Just mention it when I call?

FWIW the value of gap insurance for me is not being out of pocket with the finance. Starting from scratch is one thing. Starting from less than scratch is quite something else!

Best

Paul

Aha, now we are talking... I too got a deep discount and wouldn't want to fail to get the same deal again after an insurance payout.

David - sounds like you may be onto something there I may be in touch.

 

I look forward to hearing from you Jono.

 

Whilst we're on the subject, some people assume that because Replacement GAP insurance refers to the cost of replacing the vehicle, it must be the case that a claim would involve the GAP insurer supplying a physical replacement vehicle.  Whilst this may be the case for some policies, it's NOT the case for ours.  Both our Invoice and Replacement GAP insurance policies involve (subject to any finance secured on the vehicle being cleared first) cash payouts to the policyholder who would then be free to use the funds they receive towards the cost of purchasing any vehicle from any dealership of their choice.

 

It was wife who spoke to them (her car) she said they deal with 4 different companies and guarantee to be the cheapest (what ever) its with UK General and called combined vehicle replacement. SO you get a new car no matter when the claim is. Correct me if she wrong...she a women so never wrong

 

dredge3, I guess it's not impossible that they agreed to reduce the cost of their Replacement GAP insurance policy to match their Invoice GAP insurance policy, but, you might want to double check what policy it is (particularly if you've/she's bought it already) because if it is Invoice GAP insurance, then it's not really about getting "a new car no matter when the claim is", in fact, in your case with a PCP neither policy type will be about specifically getting "a new car" (unless the finance has been cleared by the time of any claim).

 

To clarify, what I mean is this...

 

Some people assume that with a GAP insurance claim, they'll get to acquire a new vehicle and simply continue making the same monthly repayments on their existing finance agreement... this is not the case.

 

If your invoice price was £27k, all things being equal, if you have an Invoice GAP insurance policy and at the time of a claim the settlement figure of your PCP agreement is less than £27k, the policy will be aiming to pay the difference between your Motor Insurance payout and £27k.  Therefore all things being equal, the combined sum of the Motor and GAP insurance payouts should be £27k... however you'll have a sum of money that is due to the finance company to clear your liability to them as a priority.  For the sake of example, lets say this is £17k.  If this was the case, you'd be able to use the surplus funds (£10k) towards the cost of your next vehicle.  Presumably, this would entail you taking out a new PCP agreement on the next vehicle and putting some or all of the £10k down as a deposit.

 

Replacement GAP insurance is superior to Invoice GAP insurance when the cost of replacing the vehicle is more than the £27k you originally bought it for.  Following on from the example above, if the replacement cost of a new equivalent vehicle was say £28.5k at the time of claim, the Replacement GAP insurance would aim to pay the difference between your Motor Insurance payout and the £28.5k replacement price, therefore after settling the finance (if we assume the same £17k settlement figure as above), you'd be left with £11,500 to put towards the cost of your next car.

 

So you see... it's about the money you're left with (after clearing the finance) rather than about getting "a new car" per se.

 

However, your wife is apparently under the impression that it's about getting a "new car no matter when the claim is".  In the examples above I've assumed that the settlement figure of the finance agreement at the time of claim is LESS than the original invoice price (Invoice GAP insurance) and LESS than the replacement vehicle price (Replacement GAP insurance)... depending on the sums involved (the amount of deposit put down, negative equity brought forward from a previous vehicle, interest rate, finance duration), this may not always be the case and it's important for anyone else reading this thread generally, that they don't just make the assumption that "Replacement GAP insurance" = "Replacement Car" or even that it always equals "money towards a Replacement Car".

 

What I mean is...

 

Invoice GAP insurance

 

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

• The amount outstanding on finance at the time of claim, OR
• The original invoice price that you bought the vehicle for.

Therefore in the event that you financed the vehicle with little or no deposit, or brought forward negative equity from a previous vehicle (note that usually you have to pay an additional surcharge to specifically incorporate cover for Negative Equity on a previous vehicle, with a GAP insurance policy), or the agreement involves a particularly high interest rate and (particularly when combined with a high interest rate) a long finance agreement duration (or any combination of these), an early claim (when you've paid little of the finance off) *could* see you facing a settlement figure greater than the original invoice price... in which case the policy will be aiming to pay the difference between your Motor Insurance payout and the amount outstanding on finance, in which case granted you'll have (in theory) your finance agreement cleared, but you'll be left with no funds whatsoever to put towards your next vehicle (other than your own money).

 

Similarly...

 

Replacement GAP insurance

 

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

• The amount outstanding on finance at the time of claim, OR
• The original invoice price that you bought the vehicle for, OR
• The cost of replacing the vehicle at the time of claim with one of the same Make, Model, Age, Specification and Mileage as your original vehicle was when you first bought it

Therefore if, for example, you financed a brand new car, received no (or very little) discount, putting down little (or no) deposit or brought forward negative equity, or it's a high interest rate over a long duration etc etc, an early claim *could* see you facing a finance agreement settlement figure greater than even the replacement cost of the vehicle in which case all things being equal the policy will pay the difference between your Motor Insurance payout and the finance agreement settlement figure, granted leaving you with no finance liability, but also leaving you with no surplus funds whatsoever to put towards your next vehicle.

 

dredge3 - it may be that none of this affects you, but as mentioned above, I wanted to clarify this for other browsers of this forum who might otherwise assume that GAP insurance is explicitly about getting a "new car" regardless.  In a similar context, I should point out that whilst some/most companies do sell Invoice and Replacement GAP insurance that work as I've explained above (some of those companies referring to them as "Combined" policies), there are Invoice and Replacement GAP insurance policies out there that will leave you with a shortfall if the Finance Agreement settlement figure happens to be greater than the original invoice price (Invoice GAP insurance) or greater than the replacement vehicle price (Replacement GAP insurance).

 

I hope this makes sense.

 

David

I have your company's gap insurance on my wife's Fiat Panda and need to get something sorted out for my Rapid (1 yr old at purchase, took delivery about a month ago). How do I get the Briskoda discount? Just mention it when I call?

FWIW the value of gap insurance for me is not being out of pocket with the finance. Starting from scratch is one thing. Starting from less than scratch is quite something else!

Best

Paul

 

Hi Paul,

 

Yes, just mention that you're a BRISKODA forum member when you call.

Out of interest... what was the invoice price of your car and what policy claim limit did you choose?

£22K price/£15K limit

I look forward to hearing from you Jono.

 

Whilst we're on the subject, some people assume that because Replacement GAP insurance refers to the cost of replacing the vehicle, it must be the case that a claim would involve the GAP insurer supplying a physical replacement vehicle.  Whilst this may be the case for some policies, it's NOT the case for ours.  Both our Invoice and Replacement GAP insurance policies involve (subject to any finance secured on the vehicle being cleared first) cash payouts to the policyholder who would then be free to use the funds they receive towards the cost of purchasing any vehicle from any dealership of their choice.

 

 

dredge3, I guess it's not impossible that they agreed to reduce the cost of their Replacement GAP insurance policy to match their Invoice GAP insurance policy, but, you might want to double check what policy it is (particularly if you've/she's bought it already) because if it is Invoice GAP insurance, then it's not really about getting "a new car no matter when the claim is", in fact, in your case with a PCP neither policy type will be about specifically getting "a new car" (unless the finance has been cleared by the time of any claim).

 

To clarify, what I mean is this...

 

Some people assume that with a GAP insurance claim, they'll get to acquire a new vehicle and simply continue making the same monthly repayments on their existing finance agreement... this is not the case.

 

If your invoice price was £27k, all things being equal, if you have an Invoice GAP insurance policy and at the time of a claim the settlement figure of your PCP agreement is less than £27k, the policy will be aiming to pay the difference between your Motor Insurance payout and £27k.  Therefore all things being equal, the combined sum of the Motor and GAP insurance payouts should be £27k... however you'll have a sum of money that is due to the finance company to clear your liability to them as a priority.  For the sake of example, lets say this is £17k.  If this was the case, you'd be able to use the surplus funds (£10k) towards the cost of your next vehicle.  Presumably, this would entail you taking out a new PCP agreement on the next vehicle and putting some or all of the £10k down as a deposit.

 

Replacement GAP insurance is superior to Invoice GAP insurance when the cost of replacing the vehicle is more than the £27k you originally bought it for.  Following on from the example above, if the replacement cost of a new equivalent vehicle was say £28.5k at the time of claim, the Replacement GAP insurance would aim to pay the difference between your Motor Insurance payout and the £28.5k replacement price, therefore after settling the finance (if we assume the same £17k settlement figure as above), you'd be left with £11,500 to put towards the cost of your next car.

 

So you see... it's about the money you're left with (after clearing the finance) rather than about getting "a new car" per se.

 

However, your wife is apparently under the impression that it's about getting a "new car no matter when the claim is".  In the examples above I've assumed that the settlement figure of the finance agreement at the time of claim is LESS than the original invoice price (Invoice GAP insurance) and LESS than the replacement vehicle price (Replacement GAP insurance)... depending on the sums involved (the amount of deposit put down, negative equity brought forward from a previous vehicle, interest rate, finance duration), this may not always be the case and it's important for anyone else reading this thread generally, that they don't just make the assumption that "Replacement GAP insurance" = "Replacement Car" or even that it always equals "money towards a Replacement Car".

 

What I mean is...

 

Invoice GAP insurance

 

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

• The amount outstanding on finance at the time of claim, OR
• The original invoice price that you bought the vehicle for.

Therefore in the event that you financed the vehicle with little or no deposit, or brought forward negative equity from a previous vehicle (note that usually you have to pay an additional surcharge to specifically incorporate cover for Negative Equity on a previous vehicle, with a GAP insurance policy), or the agreement involves a particularly high interest rate and (particularly when combined with a high interest rate) a long finance agreement duration (or any combination of these), an early claim (when you've paid little of the finance off) *could* see you facing a settlement figure greater than the original invoice price... in which case the policy will be aiming to pay the difference between your Motor Insurance payout and the amount outstanding on finance, in which case granted you'll have (in theory) your finance agreement cleared, but you'll be left with no funds whatsoever to put towards your next vehicle (other than your own money).

 

Similarly...

 

Replacement GAP insurance

 

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

• The amount outstanding on finance at the time of claim, OR
• The original invoice price that you bought the vehicle for, OR
• The cost of replacing the vehicle at the time of claim with one of the same Make, Model, Age, Specification and Mileage as your original vehicle was when you first bought it

Therefore if, for example, you financed a brand new car, received no (or very little) discount, putting down little (or no) deposit or brought forward negative equity, or it's a high interest rate over a long duration etc etc, an early claim *could* see you facing a finance agreement settlement figure greater than even the replacement cost of the vehicle in which case all things being equal the policy will pay the difference between your Motor Insurance payout and the finance agreement settlement figure, granted leaving you with no finance liability, but also leaving you with no surplus funds whatsoever to put towards your next vehicle.

 

dredge3 - it may be that none of this affects you, but as mentioned above, I wanted to clarify this for other browsers of this forum who might otherwise assume that GAP insurance is explicitly about getting a "new car" regardless.  In a similar context, I should point out that whilst some/most companies do sell Invoice and Replacement GAP insurance that work as I've explained above (some of those companies referring to them as "Combined" policies), there are Invoice and Replacement GAP insurance policies out there that will leave you with a shortfall if the Finance Agreement settlement figure happens to be greater than the original invoice price (Invoice GAP insurance) or greater than the replacement vehicle price (Replacement GAP insurance).

 

I hope this makes sense.

 

 

Hi Paul,

 

Yes, just mention that you're a BRISKODA forum member when you call.

Many Thanks. Ill call you when we collect the car. At the end of the day. As long as she doesn't end up owing money to someone. If the PCP is paid off and terminated, nothing lost

£22K price/£15K limit

 

Not a huge difference then.. we'd have been £94.49 for the same or £126.40 for the Replacement GAP equivalent.

Thanks for all the information, I'll be looking into GAP insurance the next week or so and these posts have really explained things.

 

My local dealer has a blanket cost of £395 for GAP so I definitely be looking elsewhere. Will most likely go for invoice gap

Not a huge difference then.. we'd have been £94.49 for the same or £126.40 for the Replacement GAP equivalent.

 

Thanks for all the advice in this thread David, the link to 'The Perils of New for Old Cover' was most useful...

 

http://blog.gapinsurance.co.uk/index.php/2015/02/23/the-perils-of-new-for-old-cover/

 

I'm currently attempting to ask the 3 questions to determine the need for GAP insurance in the first year with Admiral now but with limited success, they really are bloody useless!

 

Anyway it seems Admiral have no 'New for Old' policy at all, you get market value.

 

Seems like I'm going to need GAP for the full two years.

 

Can you provide a quote on here David?