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  • FIRST POST
    • MSE Rosie
    • By MSE Rosie 18th Dec 15, 9:35 AM
    • 63Posts
    • 29Thanks
    MSE Rosie
    Gap insurance - guide discussion
    • #1
    • 18th Dec 15, 9:35 AM
    Gap insurance - guide discussion 18th Dec 15 at 9:35 AM


    Hi all,

    We've written a new Gap Insurance guide and would love your feedback.

    How did you find the info? Was it useful? Have you had a good or bad experience when buying gap insurance?

    Thanks for your help!

    MSE Rosie
Page 1
    • Elincolnah
    • By Elincolnah 18th Dec 15, 10:52 AM
    • 19 Posts
    • 0 Thanks
    Elincolnah
    • #2
    • 18th Dec 15, 10:52 AM
    • #2
    • 18th Dec 15, 10:52 AM
    Could of done with this guide a month ago before my car got written off lol.

    We brought a car that was 4 months old, technically not brand new because it was an ex-demo car. We got it on finance, we only had it 5 weeks before it got written off.

    We're still in the process of sorting finance and paperwork, but as it stands after our insurance and figures have been paid we have a £200 shortfall. That's because of excess and remaining premium taking £700 off the payment from our insurers.

    So we've made a claim on our GAP policy, and as I understand it, it will pay us to the value of our invoice cost. Which should return us with our deposit. Otherwise, yes our finance has been paid off, but we are without a car and out of pocket from our deposit.

    After researching a little bit and speaking to some members on here, turns out our insurer is one of a few that don't replace with a new car.
    • Frozen_up_north
    • By Frozen_up_north 21st Feb 16, 8:06 AM
    • 1,270 Posts
    • 599 Thanks
    Frozen_up_north
    • #3
    • 21st Feb 16, 8:06 AM
    • #3
    • 21st Feb 16, 8:06 AM
    I was in a car showroom recently and was introduced to a manager who "by law" had to talk me through a GAP insurance sales pitch. He went on to mention their "scuff and dint" cover for a similar price and was asked if I damaged my alloy wheels, as their cover included up to 6 wheel repairs a year for 3 years and £150 towards a wheel replacement if it was beyond repair.

    He also mentioned that he had to pass a couple of dozen exams a year, each year, in order to comply with offering GAP insurance.

    Another lie was that since last September, you weren't allowed to walk into a car showroom and buy a car without a 2 working day cooling off period... The FCA require that you can't be sold GAP insurance withing 2 days, nothing to do with the actual purchase of the car.

    A double glazing saleman couldn't have done a better job of lying. If for no other reason than the "scuff and dint" cover had a list of exclusions, the first on the list being alloy wheels

    Remember the ABC rule, accept nothing, believe no one and check everything.
    • Nearlyold
    • By Nearlyold 21st Feb 16, 11:49 AM
    • 972 Posts
    • 801 Thanks
    Nearlyold
    • #4
    • 21st Feb 16, 11:49 AM
    • #4
    • 21st Feb 16, 11:49 AM
    I was in a car showroom recently and was introduced to a manager who "by law" had to talk me through a GAP insurance sales pitch. He went on to mention their "scuff and dint" cover for a similar price and was asked if I damaged my alloy wheels, as their cover included up to 6 wheel repairs a year for 3 years and £150 towards a wheel replacement if it was beyond repair.

    He also mentioned that he had to pass a couple of dozen exams a year, each year, in order to comply with offering GAP insurance.

    Another lie was that since last September, you weren't allowed to walk into a car showroom and buy a car without a 2 working day cooling off period... The FCA require that you can't be sold GAP insurance withing 2 days, nothing to do with the actual purchase of the car.

    A double glazing saleman couldn't have done a better job of lying. If for no other reason than the "scuff and dint" cover had a list of exclusions, the first on the list being alloy wheels

    Remember the ABC rule, accept nothing, believe no one and check everything.
    Originally posted by Frozen_up_north
    The scuff and dint cover (it covers bodywork) is a separate policy to the tyre and alloy wheel cover so the salesman was trying to sell you two extra policies in addition to the GAP cover.

    Actually he almost certainly will be subject to annual testing on his insurance product knowledge (one test for each insurance product they sell) plus finance product knowledge plus insurance and finance compliance, money laundering and data protection - doubt though whether this would come to a couple of dozen tests a year
    Last edited by Nearlyold; 21-02-2016 at 11:55 AM.
    • 999nmt
    • By 999nmt 21st Feb 16, 4:17 PM
    • 7 Posts
    • 0 Thanks
    999nmt
    • #5
    • 21st Feb 16, 4:17 PM
    • #5
    • 21st Feb 16, 4:17 PM
    I've just read through the MSE guide about GAP insurance.
    After several hours trawling through the internet, I'm stumped to find the answer I'm looking for.

    I've come across the old paperwork from the purchase of my car (used) back in 2010 and apart from the miselling aspect of this, due to the finance not being authorised without it (having being pregnant with 2nd child we felt there was no other option as the need for the car at the time was great.).... the GAP/VRI was INCLUDED in the total amount of credit that was issued to us.

    On the pre-contract information sheet, there is clearly an area for GAP insurance in the "Details of Add-on Products" and 0.00% interest rate pa.
    Surely this should of been in this box and not in the total cost price?

    Could anyone clarify if the GAP should be separate, rather than included in the cost of the car?
    I see it that I've paid 5 years interest on a 36 month cover plan and it doesn't add up!

    I will be writing to the dealership so any other information would be great. I'm just worried I'm not seeing something that's perfectly acceptable.
    • Nearlyold
    • By Nearlyold 21st Feb 16, 4:42 PM
    • 972 Posts
    • 801 Thanks
    Nearlyold
    • #6
    • 21st Feb 16, 4:42 PM
    • #6
    • 21st Feb 16, 4:42 PM
    Did you pay a deposit? Even if you effectively paid cash for the GAP policy it would still show in the Total Amount Payable calculation as would any other extras eg mats that you might have added to the basic price of the car

    There may be an area for GAP to be added at 0% if you need to borrow to pay for it (but the dealer does not have to sell it at 0% finance), but it could be your deposit/ part exchange covered the cost of the GAP policy anyway. Have a look at the "Statement of Price" that came with your GAP policy docs that should tell you if you are paying interest on the GAP policy.
    • Thrupnybit
    • By Thrupnybit 21st Feb 16, 10:43 PM
    • 51 Posts
    • 12 Thanks
    Thrupnybit
    • #7
    • 21st Feb 16, 10:43 PM
    • #7
    • 21st Feb 16, 10:43 PM
    Hmm. Very pertinent. Looking at a car on Saturday we were quoted an overall price which included GAP; no breakdown of individual costs (half price servicing for two years, spare wheel also included). Have I understood correctly that this approach is illegal since September 2015? That is my interpretation of "Dealers selling gap insurance are now NOT allowed to sell it at the same time as you buy a car."
    I would like to be absolutely sure of my ground before I start to negotiate on price and get this insurance removed; current insurer gives new for old replacement on car under 12 months.
    • Frozen_up_north
    • By Frozen_up_north 22nd Feb 16, 8:51 AM
    • 1,270 Posts
    • 599 Thanks
    Frozen_up_north
    • #8
    • 22nd Feb 16, 8:51 AM
    • #8
    • 22nd Feb 16, 8:51 AM
    The dealership we visited claimed it "was the law" that we had to sit through a sales pitch on GAP insurance, which also included a pitch on alloy wheel and "scratch/dint" insurance! This is on a cash purchase of a new car.

    The cost of the GAP insurance was £299 for 3 years cover, the top listed independant provider of the same insurance is £121, no 15 minutes of sales blather either.

    I thought double glazing salesmen were dodgy, they have nothing on the rubbish talked by car dealers
    • turts
    • By turts 28th Mar 16, 7:13 PM
    • 1 Posts
    • 0 Thanks
    turts
    • #9
    • 28th Mar 16, 7:13 PM
    • #9
    • 28th Mar 16, 7:13 PM
    I have just brought a car from Westover Renault, Well last week.
    At the time of Paying the deposit the Salesman asked me if I would like to take gap insurance out he briefly explained what the insurance was not that I was fully listening as all I was thinking about is the Vehicle I have just purchase

    The insurance policy was £300 and something can't remember exactly how much but that was for 3 years cover

    I said yes to the policy at the time but then thinking about it that night and reading about it I thought to myself I don't want it so had to go back the next day to tell him so But now I'm aware That what he did Was illegal As of 1st September 15

    I know I have changed my mind about the insurance policy but is there anything I can do about it as I have not signs the financial paperwork or pick the car up yet

    Thank you for your help in advance
    • gropinginthedark
    • By gropinginthedark 4th Jun 16, 11:29 AM
    • 100 Posts
    • 79 Thanks
    gropinginthedark
    Just bought new car. Sales tried to offer GAP, minor dint and "Glasscoat paint and fabric protection", together that would add about £1k. Said no to all, said I knew about GAP before so don't waste my time. I independently bought GAP elsewhere £100 cheaper, 5 years instead of 3 and better cover (replacement vehicle rather than back to invoice).

    Looking around at cars with minor damage the 15cm circle the insurances cover seems inadequate and at £300+ expensive. Remember that normal insurance may cover the same damage - although with a bigger excess and risking your NCD.

    Glasscoat? no idea whether it's worthwhile but I'd bet you can get the same elsewhere cheaper.

    As for selling GAP at the same time as the car, my interpretation of the legal situation is that they can do the sales spiel but not actually close the sale same day. As for the "legal requirement" to explain it, I think that means they must give you the full FCA treatment if you are buying GAP but otherwise no need.
    • bluepen
    • By bluepen 6th Jul 16, 9:58 AM
    • 1 Posts
    • 0 Thanks
    bluepen
    We have recently purchased a car by PCP. It is the first time we have used PCP. Our car insurer pays out for a replacement new car in the first 12 months if our car is written off. From what I read, it seems that perhaps GAP insurance may be worth purchasing after this 12 month period, for the rest of the PCP contract, which is 41 months in total - so for the last 29 months of the contract? Does this make sense? The car dealer did try to sell us Gap insurance, but I told them we didn't want it.
    • mattk_180
    • By mattk_180 7th Jul 16, 10:08 AM
    • 344 Posts
    • 260 Thanks
    mattk_180
    Haven't read the whole thread but just in case somebody hasn't mentioned, if you want GAP cover, get it direct from an insurer or through an insurance broker.


    You don't have to have the car insurance with them and it's about a third of the price a dealer will try and sell it to you for.
    • dacouch
    • By dacouch 7th Jul 16, 5:31 PM
    • 20,281 Posts
    • 12,522 Thanks
    dacouch
    We have recently purchased a car by PCP. It is the first time we have used PCP. Our car insurer pays out for a replacement new car in the first 12 months if our car is written off. From what I read, it seems that perhaps GAP insurance may be worth purchasing after this 12 month period, for the rest of the PCP contract, which is 41 months in total - so for the last 29 months of the contract? Does this make sense? The car dealer did try to sell us Gap insurance, but I told them we didn't want it.
    Originally posted by bluepen
    You can buy policies that have a post dated start date to coincide with your vehicle insurers new car replacement running out
    • BabyDuck
    • By BabyDuck 4th Sep 16, 4:57 PM
    • 1 Posts
    • 0 Thanks
    BabyDuck
    Hi, I am currently considering buying gap insurance on a brand new car I have purchased. I see on the guide it says that gap insurance is worthwhile if buying under finance, but also that it is not necessary if you have fully comprehensive car insurance that offers a new car replacement.

    I am a little confused how to proceed as I have bought the car through a PCP deal, but my insurance also offers a new car replacement for the first year, I would be grateful for any advice you could give.
    Thanks!
    • TEC6245
    • By TEC6245 5th Oct 16, 11:21 AM
    • 1 Posts
    • 0 Thanks
    TEC6245
    Hi - about to get a new car on a 3 year personal lease. My insurance only mentions replacement at market value, not new for old - does anyone know if gap insurance is advisable in this instance. Would hate to owe a significant amount in the event of total loss or theft.
    • Quentin
    • By Quentin 5th Oct 16, 11:29 AM
    • 33,267 Posts
    • 17,200 Thanks
    Quentin
    Yes, that's what GAP insurance covers (The gap between market value and what you owe)


    Read through the guide to see what GAP cover will do.
    • mattk_180
    • By mattk_180 5th Oct 16, 1:32 PM
    • 344 Posts
    • 260 Thanks
    mattk_180
    Also check your policy wording carefully as aside from the usual "market value" wording, it may also note that they will pay out the original purchase price if written off within the first 12 months of it being registered.


    I bet a fare few people could have saved money by not taking it out in the first year when it wasn't required, although granted not all policies will cover this.
    • mirkle
    • By mirkle 17th Dec 16, 1:45 PM
    • 7 Posts
    • 1 Thanks
    mirkle
    Total loss
    Have just been through the different links on the gap insurance information page. I decided on vehicle replacement gap insurance as it's a brand new car and the fully comp insurance I bought doesn't do replacement in the first year. On line the best offer for vehicle replacement across all the links MSE supplied was £144, but when I rang one company to advise on which policy would be better I was offered a total loss gap insurance with Aequitas Automotive Limited for £99. This pays out at whatever is the highest between 1) the finance if paying HP 2) the cost of replacing the car 3) a brand new car. Basically it's a hybrid between back to invoice and vehicle replacement.
    • carpo
    • By carpo 23rd Dec 16, 11:34 AM
    • 1 Posts
    • 0 Thanks
    carpo
    I have to admit to being converted to the benefits of GAP Insurance after a family member recently recovered the balance between the market value of the car paid out via the insurer and the original price that she paid for the new car. It meant she could buy a new car instead of a second hand equivalent - as is the case for a lot of people, she wouldn't be confident enough to buy a second hand car. I'm also not sure how "market value" is calculated by the insurer - I don't think it's the price of buying an equivalent car through a dealer (with a warranty etc.), but I may be wrong or it may vary depending on the insurer.

    We just bought a second hand car from the dealer and because of the type of car it is (and it's price, age (6 years) and the fact it's second hand so should depreciate more slowly than a new car) we expect the depreciation to be around £4,000 over the next 3 years, if we look after it. The dealer's GAP insurance quote was £300 - really high! But the cover was up to £50,000 - something that would never be relevant to us.

    The quote from Click4Gap was £124 for 3 years cover and up to £5000. The policy wording appears clear and straightforward - largely their pay out appears to be linked to whether the primary car insurance pays out. Plus it covers someone robbing your car keys from your home.

    For us, we think the policy will become more important in its second and third year. If we needed to replace the car at that stage we probably wouldn't buy a second hand 8/ 9 year old car but something a bit younger - so we'd almost certainly have a shortfall to cover. Because of this we think the cheaper GAP insurance is probably worthwhile, just in case.

    As our car isn't new we don't get the benefit of the "new for old" in the first 12 months from our insurer - but the Click4Gap policy is only available to buy within 90 days of purchasing the car. So be warned!
    • csgohan4
    • By csgohan4 23rd Dec 16, 12:30 PM
    • 3,961 Posts
    • 2,470 Thanks
    csgohan4
    got a 5 year gap cover for a new car, I think it's hand to have in case of accidents, especially if the car is on finance and you may get less than you paid for
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
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