GAP insurance?

yelf

I've just bought a new car for £13,000 and have taken out Guaranteed Asset Protection insurance; it's costing me £16.47 per month and is payable for 24mths, but covers 36mths.

so if I write it off, this policy will make up the difference between what my insurance pay out and what I paid for the car.

How can I check if this is a competitive quote?

dacouch

I'm guessing you bought (Were sold this) from the dealer, you are paying about £250 more than you can buy the same or similar cover on the internet.

Google "Vehicle Replacement Insurance" and there will be plenty of companies that come up.

You have a 14 day cooling off period to cancel the policy.

Your car insurers will replace the car with a brand new car if you write it off (Generally repairs costing 60% or more of the car value) in the FIRST year of ownership of the car from new

shelly

yelf wrote: »

so if I write it off, this policy will make up the difference between what my insurance pay out and what I paid for the car.

That's if they don't decide at the time of writing the car off that the car was actually worth more than what you paid for it. Then you won't get a penny from them.

yelf

ok, im now looking on line for alternatives.

But which policy exactly do i need? Return to invoive or finacne gap?

I paid 12,500 via a loan. What I want is if I crash in a year, I want the insuarnce plus "GAP" to cover what I owe on the loan.

dacouch

Vehicle Replacement Insurance (VRI) is better than (RTI) or normal gap, if you cannot find VRI then return to invoice (RTI) is nearly as good as VRI

Astaroth

Many tend to also bundle GAP into VRI and RTI just so if for some reason the debt is the largest amount then that is paid off.

There are a lot of less scruplous companies in the GAP market (and this is coming from a product manager who most here probably would consider to have no morals) and you really need to read the small print.... the most common trick is that many only pay the difference between what THEY (or glasses) consider your vehicle was worth and what the invoice price was..... so if your insurers offer you 80% of the glasses price because of pre-existing damage or because you dont have leather seats or such then the GAP leaves you 20% short as they pay 100% of glasses to invoice.

shelly

What Astaroth said is pretty much what happened to my Dad. His RTI policy wouldn't pay out as they valued the car at more than what he actually paid for it.