GAP insurance - which type?

Jaxer

I'm about to take delivery of a new car on a PCP and I'm getting confused about the best type of GAP insurance. Looking at a few of the websites, I don't know if I should go for Return to Value, Return to Invoice or Replacement.

In a nutshell, what's what?

thescouselander

Go for return to invoice. You could find with return to value that the value of the car is worth less than the outstanding finance.

ahillsy

Return to invoice will get you back up to the price you actually paid for the case, per you invoice. Note, this isn't guaranteed to get to back up to what it costs to buy the car new again - e.g. for example, if you bought you car when there was a limited time discount off (such as Skoda with their VAT-off deal) and also haggled further, it might not actually be possilbe to get that same deal in a year or 2's time and the price may then be higher.

This is where Vehicle Replacement GAP comes in (and is more expensive). It will cover you for this increase so you can get a replacement vehicle even if the price has increased since you bought yours. Note they all have a maximum payout limit, so make sure you set an appropriate limit.

I bought mine through ala.co.uk (check quidco for cashback), and the site gives a full explanation of all types.

Jaxer

Ala.co.uk looks cheapest for me too (even before Quidco!)