Hi all, 

 

Im about to take delivery of my new MY17 Octavia VRS on Tuesday and I'm very confused about Gap insurance. My car will be owned by VW finance and it's on a 24month contract. I have taken gap insurance before but this was when I financed a car outright.

 

Im after some advice as to if Gap is worthwhile, i.e. If the car is written of or stolen will the finance company and insurance company sort it out or will I have to pay the difference between market value etc, I'm guessing the car to VW costs less than the market value.. 

 

Any advice would be very welcome. 

Hi.

Just to let you know that we offer a simply product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP insurance we feel for some customers it can make a cost effective alternative.

https://www.adrianflux.co.uk/extras/total-loss/

Regards,

Dan/

 

On 11/03/2017 at 13:02, Jons2013VRS said:

Hi all, 

 

Im about to take delivery of my new MY17 Octavia VRS on Tuesday and I'm very confused about Gap insurance. My car will be owned by VW finance and it's on a 24month contract. I have taken gap insurance before but this was when I financed a car outright.

 

Im after some advice as to if Gap is worthwhile, i.e. If the car is written of or stolen will the finance company and insurance company sort it out or will I have to pay the difference between market value etc, I'm guessing the car to VW costs less than the market value.. 

 

Any advice would be very welcome. 

 

Hi.

 

If this is a Contract Hire agreement whereby you don't have any contractual option to purchase the vehicle at the end of the agreement then...

 

If the car is written off before the lease term has finished and you hand the car back, your motor insurer will pay only what they think the car to be worth.  The finance company (in this case VWFS) will calculate your settlement figure of the lease agreement. You should check the terms of your lease to be sure but this is likely to be a combination of what they think the car to be worth PLUS some or all of the outstanding rentals that have not yet fallen due.  They may well also apply an administration fee for settling early too.

 

Your motor insurance payout will either be sufficient to clear the settlement figure of the lease agreement or it will fall short.  If it falls short VWFS may ask you to fund the shortfall and this is where GAP insurance steps in to pay the difference between the amount paid out by your Motor Insurer and the settlement figure required by VWFS.

 

In addition, when you take out GAP insurance, you can also pay a small additional premium to cover some or all (up to a maximum of £3,000) of the initial rental that you paid when the lease began (a sum you'd normally have to walk away from).

 

In short... should you decide it's worthwhile, you'll need something called "Contract Hire GAP insurance" with or without Initial Payment Cover.

 

You can find out more at www.gapinsurance.co.uk and as you're a BRISKODA member you can get a 10% discount by using code "BRISKODA10" when prompted.

 

Of course, if you have any further questions in the meantime, please don't hesitate to ask.