Hire purchase insurance

nb126_2

I have signed up to buy a car on finance as well as using the scrappage deal, i have 47 monthly payments and then 1 final payment after the four years.

I have heard of Gap insurance incase the car is totalled or stolen but the dealership said they cannot ethically sell it me as i will never be in negative equity. i am confused as to what kind of insurance i need so i am totally covered???

ILW

Probably because the 2k scrappage and would be greater than the depreciation
Normal fully comp should cover you to clear any finance in the case of a write off.

BigDave81

I thought the insurance would just cover the market value of the car so if it is written off you may still owe more on finance than the market value in a year or two? This is slightly different in this instance though because of scrappage discount but the car is still worth more than you paid for it so best check you are covered fully to meet your expectations.

nb126_2

thanks for the help guys
Thats my problem. Because of the finance im paying out more than the car is worth even after the scrappage deal. i have seen gap insurance that will cover me for the full whack but just didnt understand why the dealership say they cant sell it me as i wont be in negative equity :-/

BigDave81

You should clarify things with the dealer, I can't understand why they would not want to sell you something and make a little extra out of the car sale, when I did mine they were trying to get me to take everything on!

Youd could ask your insurer what they would cover as well, as least you will have confirmation that way.

nb126_2

Thanks for your help.

Ill ask them. Ive had no hard sell from anyone at the dealership, all i was told was that the car would sell itself without the scrappage deal. There loss! haha