Hi all. I recently paid of my car finance with a loan with a lower APR than finance company. After I paid this, I realised that I have GAP in place on my octavia vRS. Would this still cover in case of theft/total loss for the shortfall? It is a return to invoice policy that I have. 

Thanks in advance. 

It would depend on the wording of the policy. If it was tied to the finance agreement then it may have ended and you might want to investigate a rebate.

 

Or it might be an independent product in which case the policy will still be valid. Sorry you'll have to delve into the paperwork to find out for sure.

And if still unsure, have a nosey in the insurance sub section. Id say theres been others in your boots too

Thanks for replies guys.

This is an extract from T's & C's of my policy.

 

What is Covered
If within the Period of Insurance an incident occurs which results in the insured Vehicle being classed as a Total Loss
by the Motor Insurer, We will in consideration of the payment of the premium pay:
a) The difference between the Insured Value and the purchase price of the insured Vehicle as confirmed by the
Net Invoice Selling Price, or if greater, the amount of Your Early Settlement Figure or
B- Where You have a Lease Agreement following the Total Loss of Your Vehicle We will pay the difference -
between the Insured Value and the Early Termination Charge.
The difference between the Insured Value and the Early Termination Charge will be paid to the Lease Company

 

Reads to me that it does still cover me. Does anyone agree?

Edited 24 April, 20179 yr by Hough1981
The letter b appeared as an emoji.

Reads as though you are covered but for the sake of a phone call I'd ring and double check.

 

If they can get out of paying they will.  " Who is the policy with ? "

 

AG

2 hours ago, Auric Goldfinger said:

Reads as though you are covered but for the sake of a phone call I'd ring and double check.

 

If they can get out of paying they will.  " Who is the policy with ? "

 

AG

I will give them a call after work, Cover is from Gapinsurance.co.uk........

 

On 22/04/2017 at 14:45, Hough1981 said:

Hi all. I recently paid of my car finance with a loan with a lower APR than finance company. After I paid this, I realised that I have GAP in place on my octavia vRS. Would this still cover in case of theft/total loss for the shortfall? It is a return to invoice policy that I have. 

Thanks in advance. 

 

Sorry for the delay - I've been away.

 

The policy you have with us is a combined Finance & Invoice GAP insurance policy.  E.g.  in the event of a Total Loss (write off) the policy will aim pay the difference between your Motor Insurance payout and the greater of either:

 

1. The original invoice price that you paid for your vehicle, OR

2. The amount outstanding on finance at the time of claim.

 

If you've now settled the finance that was originally secured on the vehicle at the time you purchased it, it simply means that the policy becomes a "classic" Invoice GAP insurance policy which, in the event of a Total Loss will aim to pay the difference between your Motor Insurance payout and the original invoice price that you paid for your vehicle.

 

In simple terms... yes, you're still covered though not specifically for the amount outstanding on finance at this time but, assuming the amount you've borrowed is no greater than the original invoice price that you paid for the vehicle it's likely that the amount on finance is really just a side-issue. E.g. if a claim were to happen now or in the future (before your GAP policy expires), the theory is that your Motor Insurer would pay out what they thought the car was worth at the time of loss, we'd top it up to the amount of the original invoice price you paid, then you'd settle what (if anything) is outstanding on finance and then be left with the surplus funds to put towards the cost of your next car from wherever you wish to source it (assuming of course you want to buy another car).

 

I hope this helps.

 

If you have any further questions, please don't hesitate to ask.

 

David

1 hour ago, David@GAPInsurance said:

 

Sorry for the delay - I've been away.

 

The policy you have with us is a combined Finance & Invoice GAP insurance policy.  E.g.  in the event of a Total Loss (write off) the policy will aim pay the difference between your Motor Insurance payout and the greater of either:

 

1. The original invoice price that you paid for your vehicle, OR

2. The amount outstanding on finance at the time of claim.

 

If you've now settled the finance that was originally secured on the vehicle at the time you purchased it, it simply means that the policy becomes a "classic" Invoice GAP insurance policy which, in the event of a Total Loss will aim to pay the difference between your Motor Insurance payout and the original invoice price that you paid for your vehicle.

 

In simple terms... yes, you're still covered though not specifically for the amount outstanding on finance at this time but, assuming the amount you've borrowed is no greater than the original invoice price that you paid for the vehicle it's likely that the amount on finance is really just a side-issue. E.g. if a claim were to happen now or in the future (before your GAP policy expires), the theory is that your Motor Insurer would pay out what they thought the car was worth at the time of loss, we'd top it up to the amount of the original invoice price you paid, then you'd settle what (if anything) is outstanding on finance and then be left with the surplus funds to put towards the cost of your next car from wherever you wish to source it (assuming of course you want to buy another car).

 

I hope this helps.

 

If you have any further questions, please don't hesitate to ask.

 

David

Fantastic. Thanks for the detailed reply.