GAP Insurance

paraman

im buying a car using Ford Options and im looking for recommendations regarding what companys are good as there seems to be many websites offering GAP. Also looking for advice as too which type of GAP to buy.

forgotmyname

Which type of GAP to buy will depend on your circumstances and needs..

Which are??

paraman

i need to make sure that if the car is stolen or written off, i wont owe any money.

dacouch

paraman wrote: »

i need to make sure that if the car is stolen or written off, i wont owe any money.

This would be finance gap, your Car Insurer would normally pay your fiance company the market value of your car. This will normally mean you still owe money on your finance due to interest and deprecation, the GAP would pay the difference between your car insurers payment and the balance of your finance.

However you would then be at square one eg you have no car but would owe nothing on finance.

There are other GAP products which would mean you would owe no finance and would have a replacement car

BJV

You are right if all you want is for your finance to be clear finance gap insurance but!!!

Don't forget that may be ok if your car is written off early on as you walk away with no liability but if it was to happen later on you could be walking away from a lot of money.

e.g return to invoice. Basically between the two insurance companies you get back the purchase price. from this you can clear the finance and then the balance the equity is yours.

If you opt for finance gap you would be walking away from this.

Which did a report not so long ago and it explains it better than I could.
http://www.which.co.uk/money/insurance/guides/gap-insurance/return-to-invoice-gap-insurance-review/

Hope this helps