Difference in GAP Insurance

MX5huggy

My understanding, and I may be wrong, is this.

Say you buy your Focus for £15k today then you have to claim, some GAP insurance would say, no Glasses Guide says your car was only worth £13k when you purchased so we will only pay £14300 (£13k x 110%) .

BJV

Ok When it comes to gap insurance you have to decide want you want to protect.

Finance gap simply protects you against any financial shortfall between your Fords valuation on the day it was written off and the outstanding finance.

RTI protects the invoice price

VRI protects the replacement cost.

Sounds easy in theory and in most cases it it.

But some policies have restrictions to the price you paid. We don't live in a world run by Glass's Parker's or what ever guide so sometimes to buy the vehicle you want with the extras in the colour and spec of your choice even though glass's guide or what ever guide the company uses may say that your vehicle is a certain price market forces may mean that you have to pay slightly more. Your invoice may also include paint protection or non transferable warranties. The original price can soon mount up moving far away from the guide prices with just a few extras.

This means that if ever you needed to make a claim this amount would be adjusted to allow for a percentage of the guide price and in some cases any paint protections or warranties deducted.

This could mean a difference of hundreds of pounds.

Really pleased that you checked with your insurance company. Should save you a few pounds.: Just Goggle Deferred Gap Insurance get some quotes read the policies and see what you think.

Also if you are considering VRI check who gets paid in the event of a claim as this is where insurance companies seam to fall into two camps.

Some pay the dealership and physically replace the car- some people like this as it means they dont have the hassle of looking for another.

Some pay you again some people like this as they can choose what they have next time round.

It is which ever is best for you.

Ps MX5huggy you are totally right

Good Luck:A

Wammer

Many thanks for that, very helpful.

At the moment Car2Cover is favourite as the have no Glass valuation clause and no market value clause. They also let you defer for a year and unlike another policy I read, if you take out a 3 year policy, this is in addition to the deferred year.

The others I am considering are EasyGap and gapinsurance123. which are slightly cheaper.