I'm on a 2 year PCH deal, and would like to make sure I'm covered for GAP should the worst happen. 

 

The insurance companies I've spoken to say they need to know what the value of the car is. Skoda say they shouldn't need that because "Lease GAP" doesn't work like that.

 

Does anyone else have experience of this area?

In simple terms, if you're in an agreement where you'll own the car at the end of the lease period, as far as insurance goes you can protect yourself against the financial impact of the car becoming a total loss. So you can arrange lease GAP cover which safeguards either the invoice price or replacement cost.

If you're in an agreement where you'll never own the car at the end, it's not your property so it's not your financial loss if there is a write-off/theft. However, you are liable for any difference between your car's value and any outstanding finance if it is written off.

Hope that helps.

Edited 29 July, 20169 yr by ChrisKnottIns

So if I was to come to you for a quote, the only thing you'd need to know is the amount of the payments I have outstanding on the car, correct?

The provider would want to know what the size of the gap is likely to be between vehicle value and the outstanding finance at time of inception. Don't call us though as we don't offer this type of GAP cover - I'm just trying to help you get to the bottom of it.

The provider would want to know what the size of the gap is likely to be between vehicle value and the outstanding finance at time of inception. Don't call us though as we don't offer this type of GAP cover - I'm just trying to help you get to the bottom of it.

Noted, I won't ring you about it

 

It's really odd how the salesman was very reluctant to give me a valuation of the car for GAP purposes. I, like you, thought that the insurance was to protect me from the GAP between the valuation and how much is outstanding. I'll do more digging!