This is purely (thankfully) a hypothetical question - we haven't even got the car yet - but recent threads about PCP and gap insurance etc had me wondering this and I didn't want to derail an existing thread.

 

If you own a car, and it gets written off (or stolen unrecovered) - the insurance company give you some money, GAP insurance kicks in if you have it, and you go about your business getting another set of wheels of your own choice.

 

but what happens if you're on PCP (which we will be with our new car, for the first time) ?

Are you duty bound to buy a replacement with whatever cash you get, so you can potentially give a car back at the end of the PCP (if you're not intending keeping it ?)

Are you duty bound to pay it all off to close the agreement to "keep" the written off car (I'm also assuming that a "full payment" is also a possibility at any time of the agreement anyway) which then lets you buy whatever you choose?

 

Is it a grey area / deal with it if it happens / ask them and see ?

you're gonna tell me the answer is "check the small print", aren't you ?

Edited 22 August, 20169 yr by Wet Kipper

Normally, if the policy covers PCP scenarios (you'll need to check) you'll end up paying off the outstanding amount and starting a new agreement when/if you replace the vehicle.

Depends on the manufacturer. VWFS docs say you must declare VWFS as the owner until such time as it's paid off.

Same with leasing. Most leases insist that you provide evidence they are listed as the owner so they are paid directly in event of loss