gap insurance for motor vehicles

hammer123

I have read some of the pages on this thread and feel surely this is a no brainer (depending on how you go with in regards with GAP VRI insurance).

We bought a brand new car 2 years ago and went for the VRI with Peugeot . This only lasts for 3 years and cost us £395. If in that 3 years we crash or the car gets stolen, then this insurance will cover the shortfall of what the insurance company pay out. This will firstly let us have no debt, so God forbid something happened next week and we only got £6/7,000 for a car we bought for £12,000 2 year ago. We might still owe £4/5,000 on the finance and only have £1,000 or so left to get another car. With VRI we will get the shortfall which will be another £6/7,000 which means £8,000 to buy a car.

I know a friend about 3 years ago who crashed their car after about 13 months and they had this VRI. They still owed a lot on the finance, which the insrance money went all to, but they had £4,000 after with VRI to pay for another car. Agreed it was not the new car they had and loved, but for £300 or so quid they paid the finance and still had money for a car. If they didn't pay for it they would have owed the finance x amount and had no car.

Obviously the chances of having a crash/car stolen in the first 3 years is low I suppose, but it is piece of mind. All depends if you want the risk or not.

hammer123

I also think having the VRI with the same dealership that you bought the car from and will owe the outstanding (if any) finance too would surely reduce delays in payment??

dacouch

hammer123 wrote: »

I also think having the VRI with the same dealership that you bought the car from and will owe the outstanding (if any) finance too would surely reduce delays in payment??

Not neccessarily as the car dealership are not the Insurer they simply sell the policies, you may find that as the car salesmen are not experts in Insurance it could possibly delay the payment.

If you shop around you will normally find you can buy GAP / VRI for around 50% less than the car dealership sells it to you plus they tend to add it to your finance agreement so you pay a lot of interest on it

Ex_car_salesman

gap insurance is something well worth looking at but don't buy from a dealer we used to have £100 to £150 commission in each policy and were the same polices you could buy online at half the price. Just make sure the underwriter is Uk based and covered by the FSA. I used ala they gave me a promo code jh325m (might not work anymore) was happy with the policy but do your own work and shop around there are many online providers.

I would also recommend looking online for warranty and paint protection yet again we used to have a high commission levels and you could buy the same product online.

Hope this will help save people money please reply if you would like any other advice when buying a car.

ilovebanksMCMLXXXI

GAP Insurance : Covers the difference between insurance pay-out and finance balance.

RTI GAP Insurance : Covers the difference between insurance pay-out and original invoice price (RTI : Return to Invoice)

Combined GAP Insurance : Does whichever is greater

Mapfre Abraxas would be my suggestion

It can be a brilliant product but make sure you understand the cover you need and the cover you're getting because it's an easy policy to get wrong.

Best of luck

ilovebanksMCMLXXXI

foggy wrote: »

another gap question.

I have just bought a six month old car from vw. They tried to sell me rti gap at £299 to which i said no thanks. I said i could get it elsewhere for £180 so they gave me the difference as further discount off the car (even though that had not been possible half an hour before:rolleyes: ).

Anyway i pick up the car tomorrow but so far have no documentation regarding the rti gap insurance. I am thinking that i should be able to cancel their £299 insurance anyway under the 14 day cool off period.

Is this right or have i missed something?

correct : Credit consumer act gives you 14 days cooling off

dacouch

Jackie / Griff are you aware that it is against the law to post on a forum purporting to be a happy customer if you are employed or associated to the company and you do not make this clear.

See rule 18 of the Consumer Protection from Unfair Trading Regulations http://www.oft.gov.uk/shared_oft/business_leaflets/cpregs/oft979.pdf Have a look at the bottom of page 2 of the link to see what will happen if you don't obey the rules and someone decides to contact your local trading standards office http://www.tradingstandards.gov.uk/wirral/

P.S Your website is not regulated by the FSA so you are an introducer to a website that is an appointed representitive of the Insurer (And who does not display their FSA number on their website)who introduce to an insurer who is regulated. Not the greatest way to buy GAP cover

BJV

tjm wrote: »

My husband & i are about to purchase a new car & the finacial advisor associated with ford are recommending that we purchase GAP insurance (which is an extra £345 on top of our normal car insurance). What are your views/opinions? is it a worthwhile insurance or just another extra,money making insurance for the company?

Things have moved on since then quiet a lot.

As competition on the sales of cars increases dealerships are looking for other ways to make profit. Gap Insurance and other add ons like paint protection are just one way.

The problem is that most people are only ever told about gap insurance by their dealership and think that that this the only place you can buy it.

You can Google Gap Insurance and get any number of quotes, hppts://Surf&protect.co.uk/ https://EasyGap.co.uk/ and https://gapinsurance123.co.uk/ are good ones to try but there are lots of others.

If you buy gap insurance independently from your dealership you are charged a much much lower rate of Insurance premium tax and you can find the same if not better levels of cover for pennies.

So is gap insurance worth it well that is up to you at £395 possibily not but an some of the online prices ( around the £129 mark ) I think so.
:A

blindlemon

So effectively if I have comprehensive insurance...I don't!?!?
Isn't that mis selling?

forgotmyname

If you have comprehensive insurance you dont what?

Only mis-selling if you didnt know you were buying it or bought something you didnt want or need.

Comprehensive insurance wont pay your cars finance if the finance is worth more than the cars true value.

EVEN IN 2012.... Check post dates...