Gap insurance - guide discussion

edited 22 October 2018 at 1:46PM in Insurance & Life Assurance
135 replies 102.8K views


  • Y00dlY00dl Forumite
    1 Post
    First Post
    MoneySaving Newbie
    My new car has just been written off and I didn't take GAP insurance for the first year as the insurance produce information document states (under 'What is insured') "New car replacement - if you've owned your car from new, and it's written off or stolen and not recovered within 12 months of purchase, we'll replace it with a new car of the same make, model and specification".  

    Not unreasonably, I took this to mean that, should the vehicle be written off in the first year, it would be replaced with a new car.  For this reason, I have not yet purchased GAP insurance.

    Yet, now my claim has been processed, the company is refusing to replace the vehicle and is only paying market value because the policy document has a detail clause:  

    "We will only replace your car if: 1. You or your partner own your car or are buying it under a hire purchase agreement or other type of agreement where ownership passes to you and the financing company agrees; and 2. You or your partner are the first registered keeper of your car, or you or your partner are the second registered keepers of your car, if your car has been pre registered in the name of the manufacturer or supplying dealer, providing at the time of purchase by you or your partner, the mileage of your car was less than 250 miles. Cars sold as ‘ex demonstrators’ and ‘nearly new’ do not qualify for replacement under this section."

    They state the reason for refusal is that the finance company does not agree to replacement.

    So this is an exclusion that contradicts the original statement that says "...we'll replace it with a new car ..." i.e. that says WILL (not MIGHT if exclusions in other documents do not apply).

    I feel absolutely cheated as have now lost my car and taken a large financial hit due to what I would consider misleading information in documentation which led me to believe I was covered for replacement in the first year.  Also, I had no way of knowing the finance company would not agree to replacement at the time of purchase.

    Thanks if you can offer any advice but, for anyone else pondering on whether they need GAP insurance, don't hesitate to buy it but do shop around.  

  • SilvertabbySilvertabby Forumite
    6.7K Posts
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    Our last 3 cars each had 3 years GAP thrown in as a dealer freebie. 
  • Dolphincat30Dolphincat30 Forumite
    1 Post
    First Post
    MoneySaving Newbie
    I am not sure what type of GAP insurance to get? I bought a used car 4/8/2020 valued £6995. I paid £995 cash and have the rest on 0% finance over 5 years - therefore have £6000 to pay over five years. I am not sure what type of GAP to go for i.e. 'Return to Invoice', 'Vehicle Replacement' etc. - any advice please?
    Many thanks
  • ThorperangerThorperanger Forumite
    1 Post
    Second Anniversary First Post
    MoneySaving Newbie
    On MSE recommendation I have just purchased GAP Insurance for my new (well 3,000 miles old) Kia Sportage. I wanted complete cover as it’s virtually new, Kia wanted £449, but for virtually the same terms and conditions with the MSE discounts I have paid £168.00! 
    All conducted speedily and easily online, hopefully I’ll never have to use it but £168 is a bit more easier to swallow , thanks guys👍😁
  • exWayfarerexWayfarer Forumite
    1 Post
    First Post
    MoneySaving Newbie
    Main VW dealer offered GAP insurance on new car. I obtained quotes from ALA and Click4Gap. Told dealer I did not want their GAP insurance as web quotes were half their price. When I picked up the car dealer offered me GAP at a price lower than ALA and Click4Gap quotes even with MSE discounts. So worth getting the quotes. I would have accepted ALA's quote otherwise.
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