I only wanted some advice on GAP insurance and appear to have started an argument! I’m off!!

7 minutes ago, Ness1812 said:

I only wanted some advice on GAP insurance and appear to have started an argument! I’m off!!

me too lol

11 minutes ago, Ness1812 said:

I only wanted some advice on GAP insurance and appear to have started an argument! I’m off!!

 

Advice (good advice at least) is being offered by David (Site Sponsor). Ignore all the other insignificant tripe.

1 hour ago, J.R. said:

Yes I realise that I am definitely not representative of most modern motorists hence the market for products such as yours.

 

There have always been the types that either crash their vehicles or arrange to have them stolen because they cant sell them for what they believe them to be worth, accident damage or blown engine, electronic problems etc, I guess for them GAP insurance would really appealing but they would have to start out with it in the first place.

 

Someone coming to the end of a lease or PCP that would be facing considerable charges for damage/neglect if they have GAP insurance and dodgy mates would be very tempted.

 

Oh yes.  We see our fair share of suspicious claims.  Some we can do something about... others we can’t.  It’s quite frustrating but thankfully, it’s a minority of claims.

 

1 hour ago, Rustynuts said:

Hey, I don't want or need GAP insurance, but any excuse for an argument and I'll join in.

David, you should be ashamed of yourself for holding a gun to these peoples heads and forcing them to pay you a much smaller premium than the dealer selling the car. And as for explaining the workings of the policy in plain language so that people can understand what the costs and implications of taking out said policy, well you should be ashamed of yourself.
 

Preying on people at their most vulnerable is horrible. People quite happy to spend £500 - £800 for basic GAP insurance at the dealers, and you poke your bloody nose in and tell them they could actually get a better and more suitable policy for about 20% of the cost they were happy to spend? Have you no morals or ethics?

Hang your head in shame.

 

Oh, and btw. Thanks once again for the policy you povided me with, along with the refund pro rata of the previous policy which I cancelled when I exchanged cars. I still remember the dealers face when I told him how much I paid for my policy when I was listening to his sales drivel.

 

Ha!  Opening salvo of the second paragraph and I’m like: 😳😥😡 followed quickly by 😂.

 

Thank you @Rustynuts I appreciate that.

 

1 hour ago, john2017 said:

Define what you meant as business partner in terms of:

Cessation of Andrew Frank Pickles as a person with significant control on 1 January 2018   partner | ˈpärtnər | noun 1 a person who takes part in an undertaking with another or others, especially in a business or company with shared risks and profits.

 

Andy and I own a business together = He is my business partner.  He’s also one of my best mates, confidant and mentor. 

 

From January 2018 the shareholding of the business changed to a split that was more in my favour than his - hence the change of control that you quote.

 

I ask again, what is your point?

 

53 minutes ago, Ness1812 said:

I only wanted some advice on GAP insurance and appear to have started an argument! I’m off!!

 

Actually I was going to post that we appear to have inadvertently hijacked your post @Ness1812 - I apologise.  For the record, my offer still stands - if you want to discuss your GAP requirements please get in touch.  As other members of BRISKODA will testify, your dealings with me/us will always be without pressure or obligation.

 

@john2017 if you’re inclined to discuss further, perhaps open a new thread in the GAP insurance section or take it to PM.  Or even by email ([email protected]) / or phone if you wish (number in my signature).

Edited 6 June, 20197 yr by David@GAPInsurance

I was in two minds whether to lock this thread as it seemed to be getting slightly vindictive for want of a better word but David seems to have handled and answered the questions and retorts knowledgeably. I’m not saying that just because he’s a sponsor either. 

@David@GAPInsurance - Kudos for the way you've handled this.

 

Now, I've always bought used cars with unsecured personal loans, and had what was described as "return to invoice" GAP. Without quoting an entire policy document, I presume that the GAP would pay out invoice_price - insurance_payout?

I've read this and not sure whether the original question has been answered. I've just paid off my outstanding finance and had gap as part of it, so presumably I no longer have gap cover as the finance is cleared ?

5 hours ago, KenONeill said:

@David@GAPInsurance - Kudos for the way you've handled this.

 

Now, I've always bought used cars with unsecured personal loans, and had what was described as "return to invoice" GAP. Without quoting an entire policy document, I presume that the GAP would pay out invoice_price - insurance_payout?

 

Thank you @KenONeill.

 

That's exactly how it would work.  The policy would aim to pay the difference between your motor insurance payout and the original invoice price that you paid for the vehicle.  The fact that there may well still be finance outstanding from the original loan would be a separate issue altogether.  Assuming it's a policy like ours that involves a cash payout to the policyholder (rather than a credit to a nominated dealer, for example) it means you'd get all of the money from both insurance claims (motor and GAP) and then you'd be free to choose whether to use any of that money towards paying off the remaining finance or, continuing with your loan repayments and spending the funds as you saw fit.

 

42 minutes ago, Paul007 said:

I've read this and not sure whether the original question has been answered. I've just paid off my outstanding finance and had gap as part of it, so presumably I no longer have gap cover as the finance is cleared ?

 

It depends what type of GAP insurance you had.

 

If you had Finance GAP insurance (which would aim to pay the difference between your motor insurance total loss payout and the amount outstanding on finance at the time of claim), then you paying off the finance means there's now no possible shortfall for the policy to pay.  If this is the case, you should explore cancelling the GAP insurance policy and seeking a pro-rata rebate of unused premium - although depending on the sums and timescales involved, potential cancellation fees might consume a chunk of what's left.  It's still worth querying the cancellation though, particularly if you bought it from a motor dealer as the high price you likely paid for it could well mean the remaining term is worth a reasonable amount.

 

If you have Invoice GAP insurance (aims to pay the difference between your motor insurance payout and the original invoice price paid) or Replacement GAP insurance (aims to pay the difference between your motor insurance payout and the cost of replacing the vehicle with a new equivalent at the time of claim), then clearing the finance has no bearing on the validity of the policy - it (you having cleared the finance by the time of any claim) just means that (as with KenOneill's enqury above) you receive all of the money from both Motor and GAP claims because none of it has to be paid to a finance company.

 

If you bought the GAP insurance from a motor dealer, depending on the timescales involved there's another possible scenario too... until fairly recently it was relatively common for motor dealers to provide (and some still do) a GAP insurance policy for a certain duration (usually 5 years) which was a combination of both Finance & Invoice GAP insurance but after an initial period of time (usually 3 years) the policy would revert to Finance GAP insurance type cover only (the longer duration looked good, went some way towards them attempting to justify the normally absurdly high price they were charging for it, whilst the potential for the policy actually ever having to pay anything in the secondary period was *hugely* reduced).  If you have this type of policy and you've paid off the finance during the initial period, you're still covered by the Invoice GAP insurance element for the remainder of that initial period but the cover for the secondary period is now defunct.

 

Do you know what type of GAP insurance you have?

 

 

Edited 7 June, 20197 yr by David@GAPInsurance

On 06/06/2019 at 17:31, David@GAPInsurance said:

 

As the broker (and unlike a motor dealer) we make comparatively very little on the policies that we sell.

 

As someone who works in the industry, I'll offer you the common courtesy of retracting that mistake.

 

Hint: I can get RTI GAP for £72........against the £399 that almost every GAP insurer seems to want to quote me.

 

Maybe you see very little of the £322 difference between £72 and £399?

 

But someone, somewhere is getting 322 beer vouchers on a policy.

 

Mods: I get it if the sponsor forums use their "muscle", just do me the common courtesy of allowing me to retract my post?

 

Your argument appears to be based on the premise that every RTI Gap policy costs £72, and that everyone is selling (or upselling) that policy for £399. I'm not an expert, but I can't see that being the case. Happy to be proved wrong like...

 

Edit: I can say for a fact I didn't pay anywhere near £399.

Edited 8 June, 20197 yr by Rustynuts

Or put it another way. PM me your details and next time I need a Gap policy I'll have one from you for only £72 please...

4 hours ago, SkodaVRS1963 said:

 

As someone who works in the industry, I'll offer you the common courtesy of retracting that mistake.

 

Hint: I can get RTI GAP for £72........against the £399 that almost every GAP insurer seems to want to quote me.

 

Maybe you see very little of the £322 difference between £72 and £399?

 

But someone, somewhere is getting 322 beer vouchers on a policy.

 

Mods: I get it if the sponsor forums use their "muscle", just do me the common courtesy of allowing me to retract my post?

 

 

You appear to have misunderstood what I said - I’m not remotely mistaken!

 

I said that *unlike a motor dealer* (who are notorious for mis-selling and overcharging for GAP insurance) WE make comparatively very little per policy (compared to a motor dealer).

 

You also appear to have missed the part where I said that the average price of our currently live GAP insurance policies covering Skoda vehicles is ~£160 from which we made an average gross margin of ~£40.

 

Now... these currently live policies are a mix of Contract Hire, Invoice (RTI) and Replacement (VRI) GAP insurance policies and their policy durations range from 1 to 5 yrs with the average duration working out at ~3.5 years.

 

That average of £160 breaks down as follows:

 

Retail Premium: £160

Insurance Premium Tax (12%): £17.15

Our gross margin: £40

Net rate (paid to MGA/Insurer): £102.85

 

Do I have GAP policies with net rates similar to your £72? Sure I do (assuming you’re referring to the Net rate?)  I have rates both lower and (considerably) higher than that too but, as I’d expect you to know if you’re in the industry, there’s a range of criteria that has a bearing on the final price to the end user - make & model of vehicle, vehicle value, policy type, duration and claim limit etc - all of which are dictated to us by the MGA/Insurer.

 

Assuming a Skoda motor dealer had an average policy selling price of £399 with same average net rate as ours (£102.85), their financial breakdown would be as follows:

 

Retail Premium: £399

Insurance Premium Tax (20%): £66.50

Their gross margin: £229.65

Net rate (paid to MGA/Insurer): £102.85

 

If they were selling the policy that you refer to with a net rate of £72, for an average of £399, their financial breakdown would be as follows:

 

Retail Premium: £399

Insurance Premium Tax (20%): £66.50

Their gross margin: £260.50

Net rate (paid to MGA/Insurer): £72

 

If an insurance broker had your net rate of £72 and sold it out for £399 (aside from the fact that I expect they wouldn’t sell very many) only 12% IPT applies which breaks down as follows:

 

Retail Premium: £399

Insurance Premium Tax (12%): £42.77

Their gross margin: £284.23

Net rate: £72

 

In short, nobody is earning £322 beer vouchers on a net rate of £72 and an end user price of £399.

 

Out of interest, if £72 is your net rate, what vehicle value, policy duration and claim limit does that permit cover for and how much is your average end-user/retail price?

12 hours ago, SkodaVRS1963 said:

Mods: I get it if the sponsor forums use their "muscle", just do me the common courtesy of allowing me to retract my post?

I spotted this yesterday but didn’t quite understand about you ‘retracting’ your post so didn’t reply. Maybe David’s post sorted that out though?

 

As to inferring about sponsors and muscle, I can categorically confirm (if this is what you were referring to) that the Mods & Admin’s are not under any constraints whatsoever to give extra leniency to any category of user on the forum. In fact I believe that you have previously been informed that we operate under the same Site Guidelines as everyone else. 

 

Hopefully the OP doesn’t mind the OT ‘interest’ that his post created and I’m looking forward to seeing your reply to David’s last question as I may well be in the market for GAP insurance in the very near future. It’s not something that I’ve had before but ‘peace of mind’ doesn’t seem to be that expensive an option.