Can gap insurence be purchased 2 months after the car was purchased?

 

Yes, according to their website: "It's available for vehicles that (at the time of purchasing the policy) are less than 10 years old, that were bought from a VAT Registered Motor Dealer, within the last 365 days, for a purchase price of up to £150,000."

I answered that without typing a word! :-)

 

Yes... we can provide cover up to 12 months after you take ownership of the vehicle but, if you wait more than 6-months the price increases slightly.

 

David

David

I'm a Brisky/Freedom member. Can I get 10% off a non Skoda car?

David

I'm a Brisky/Freedom member. Can I get 10% off a non Skoda car?

 

Yes. The discount is for BRISKODA members and not vehicle specific.

 

:-)

David,

I am hoping to take delivery of my VRS in 2 weeks.

Can I also purchase GAP insurance for my wife's octavia (purchased Aug 2012 from new)?

Thank you.

Seb

David,

I am hoping to take delivery of my VRS in 2 weeks.

Can I also purchase GAP insurance for my wife's octavia (purchased Aug 2012 from new)?

Thank you.

Seb

 

Seb,

 

Unfortunately we're only able to provide GAP insurance for vehicles that were purchased within the previous 12 months as a maximum.

 

There's nobody else who permits Invoice & Replacement GAP insurance (in the way that our policies work) to be purchased more than 12 months after the vehicle was purchased.  However, there are some companies that will permit you to buy a form of Agreed Value GAP insurance which is based on the value of your the vehicle at the time you bought the GAP insurance policy (rather than the original invoice price (Invoice GAP insurance) or new replacement price (Replacement GAP insurance) etc) however somewhat confusingly, some of those companies still call their product "Replacement GAP insurance".

 

If you search for "Agreed Value GAP insurance" or "Retail Value GAP insurance" you'll find a number of companies.

 

David

Have just bought this using the 10% discount code and full replacement cover came in it a smidge under £100. Never been a big fan of GAP as perceived it as costly but clearly shopping around (and using Briskoda code) proved me wrong !

Thanks David,

That's a shame but I was only expecting the GAP insurance for my wife's car to come to its current value anyway.

Will look into it.

Cheers

I am due to collect my new car in early September - I have chopped in my Octavia which was on a PCP deal, and now opted for a PCH deal on the new one.

Do I still need GAP Insurance as I will not be the registered keeper? 

If so, what value do I put on the car, the RSP or the 3 years payments I'll be making ?

Thanks in advance for any advice

John (JKW)

I am due to collect my new car in early September - I have chopped in my Octavia which was on a PCP deal, and now opted for a PCH deal on the new one.

Do I still need GAP Insurance as I will not be the registered keeper? 

If so, what value do I put on the car, the RSP or the 3 years payments I'll be making ?

Thanks in advance for any advice

John (JKW)

 

Hi John - Sorry for the delay. For some reason I'm not receiving emailed notifications of posts on this forum or private messages.

 

Firstly, it's not always necessary with a PCH agreement to take GAP insurance, because your potential liability to the finance company can vary considerably from one finance company to another.  In very simple terms, in the event of write-off, the finance company will calculate a settlement figure based on what they believe the car to be worth at the time of loss, plus the balance of your outstanding rentals, plus they may or may not apply a fee or discount for early termination.

 

Your Motor Insurance payout will then either be higher or lower than this settlement figure.  If it's higher, the finance company *may* pay you the excess funds (but most don't) and if it's lower, the finance company will hold you liable for ALL, SOME or potentially even NONE of the shortfall.  Clearly if you were to be liable to for all of any potential shortfall, it would be prudent to have some form of GAP insurance policy in place. Whereas if you're liable only for a nominal fee per outstanding rental (I saw an agreement a while back that entalied a liability of just £15 per outstanding rental at the time of loss) you may elect not to take GAP insurance or at least cover at a reduced level.  Of course if your agreement would see you liable for NONE of the shortfall (I experienced this myself with a Volvo Lease agreement when my V40 was written off in December 2014) you wouldn't need GAP insurance at all.

 

Assuming your PCH is with VWFS I've seen agreements of theirs which almost suggest that they'd expect DOUBLE the outstanding rentals to be paid in the event of a Total Loss. However I've also seen explanations from them which suggest that there's a typo in their agreements which cause the liability to be interpreted as being so high and that it wouldn't be enforced, but... those same explanations fell short of explaining exactly how they'd calculate your liability!

 

In terms of calculating a cost for GAP insurance, again it varies slightly from one provider to another, but with us, we ask you to tell us either the full list price of the vehicle, or (ideally) the P11d value of the value of the vehicle.  In terms of then choosing an appropriate Claim Limit, a good start is to choose a Claim limit that is at least equal to the total sum of all the rentals which you will not have paid on the day/time that you start driving the vehicle.

 

As an example... if your PCH was of a 3 + 35 structure at £220 per month inc vat and assuming the initial 3 rentals were going to be taken by DD AFTER you'd taken delivery of the vehicle, the total sum of your rentals would be 38 x £220 = £8,360 and I'd suggest (assuming your PCH agreement would see you liable for ALL of any shortfall - see above) a £10,000 Claim Limit would be an appropriate minimum Claim Limit (our next level down would be £7,500 and potentially insufficient).  Of course if your agreement is with them and the VWFS PCH wordings suggesting you'd be liable for double the outstanding rentals turned out to be enforced (check your agreement wordings carefully), there'd be an argument to suggest that your liability in the event of driving the vehicle away from the dealership would be £8,360 x 2 -= £16,720 and I'd suggest £17,500 as an appopriate minimum Claim Limit... however... I can't imagine that any finance house would legitimately attempt nor get away with charging double the outstanding rentals in the event a early settlement by way of a Total Loss.

 

The thing to remember is that, with a PCH agreement, you're only going to get cover on a Contract Hire GAP insurance basis which, in the event of a claim, will aim to pay the difference between your Motor Insurance payout and the amount required to settle the remaining balance of the Contract Hire agreement (excluding VAT if you're VAT registered and other costs such as maintenance, arrears and excess mileage fees - if any).  Thus, unlike an Invoice or Replacement GAP insurance policy for a vehicle that you are buying which both see the gap (and potential payout) getting larger over time, it would be a descending level of cover (e.g. the longer the policy is in force the less it will potentially pay out because the amount outstanding on finance decreases over time).

 

I hope this helps. If you require any further information please don't hesitate to ask, but whilst the notifications for the forum are playing up for me, it may be best to email me at [email protected] for a prompt response.

 

Best wishes

 

David

Many thanks David - just what I wanted. Email on it's way to you.

John (JKW)