Gap insurance - guide discussion

Kellsangel

Just to double check, are we not currently able to claim back GAP insurance I feel was misold? I wasn't even given the option to shop elsewhere for it back in 2014.


Thanks


Kelley

Kellsangel

lostinheaven wrote: »

If you bought it from a motor dealer, they've only been obliged to specifically promote the fact that you can source GAP insurance from elsewhere, since September 2015.


There will however be a complaints procedure detailed within your policy wordings... you can but submit a complaint and see what happens.


Consider though... if you still own the car, and your policy has time left to run, what would you do if they cancelled your policy and gave you your money back, only for you to then go on and have your car written off.

Ah right, fair enough. I will see what they say I've still got the car but the policy finished a couple of years ago now. Thanks for your advice.

Business_Guy

Unfortunately, insurers have deemed my car a total loss and indicated a value for the car which they sort of say can not be challenged as they use 2 independent valuation guides and considered the mileage and equipment option. The guides I think were CAP and Glasses. Luckily, I recall i bought GAP from the BMW main dealer supplying the car, MAPFRE. They have valued my car under Glasses guide as well and it is £3,700 higher than my main insurer! So I have this GAP in my GAP insurance and either are willing to budge as in their interest for one to be low and the other to be higher. Also strange for me to say to one party that they have valued to low and to say to the other you valued too high! Both are insisting they are correct . The GAP insurers are saying they use “Retail Transacted Adjusted Value Total”, perhaps this is how they get round not paying out this middle GAP sum! Is there anyone else on this forum that have experienced the same and found a way out? So much money to be left out of pocket to get back to invoice value and others should be aware of this massive conflict and loophole. GAP insurance should be paying the difference between the insurance total loss payout to invoice value..... not in my case!

Business_Guy

The insurers were chancing their arm and have now averaged the CAP and Glasses Guide values to arrive at a higher value. Previously they used the lowest of the 2 valuations although they told me over the phone they had used the highest. CAP is so much lower than Glasses Guide. They were also clear to state at the onset that they do not entertain any advertisements of cars as indication of value. The GAP insurance that have stated they do not use any other valuation but Glasses so no way I can get them to come down any more. End result is the GAP between total loss settlement to the GAP valuation is now £1860 that is down to me instead of £3700 so still alot.

Mazda64

Just purchased a brand new car on PCP finance early this month. I'm with Direct Line insurance and they offer New Car Replacement for the first 12 months so I know I don't need gap in this instance, however once the 12 months have passed can I then purchase Back to Invoice Gap policy to cover the 3 remaining years of the finance term or do I have to do this earlier? Any advice welcome please.

Molly_Magic

This is a word of caution to consider before purchasing the Click4Gap insurance.

I have recently purchased a Return To Value Gap Policy with Click4Gap after finding this provider as an affiliated link on the MSE website. They provided the lowest price that I was able to find for my vehicle for a 4yr policy. I will now be taking full advantage of the 21 day cooling off period to cancel this policy. Here's why.

If you read the policy documents for this insurance, they are clear that (in the event of a claim for a total loss) the amount covered is the difference, up to the claim limit, between the vehicle value and loss value.

A clear definition of both the vehicle value and the loss value is also provided.

But.........here's the catch: the definition of Vehicle Value that is provided refers to the LESSOR of the value declared by you on the schedule OR Glass's Gide MID BOOK VALUE. What they don't make clear is what that Glass's guide "mid book value" is, or how it's calculated.

I contacted them regarding the current glasses guide value for my vehicle and they were helpful enough to send through a response that gave me the current Glass's guide valuation for my vehicle free of charge. The valuation included three different values for my car: the Glass's Trade, the Retail Transacted, and the Retail Asking. So which one of these three values equates to the Glasses Guide mid-book value? After more direct and carefully worded questioning; I eventually got to the bottom of things and have been able to obtain written confirmation from Click4Gap that the Glasses Guide Mid-book value is calculated as follows:

(Glass's Retail Transacted value + Glass's Trade value) divided by 2.

This gives a significantly lower value than either the Glass's guide retail asking value or the retail traded value.

There are policies out there which pay out based on the Glass's guide retail value, or even the glasses guide retail value plus 5%. The ones that I have found are all more expensive than the Click 4 Gap policy; but I guess you get what you pay for. Which is why I am providing this feedback.

If you are happy that the Click 4 Gap policy meets your needs and offers sufficient cover for you then fair enough. For a little bit extra (tens of pounds extra) there are other providers who will pay out more (hundreds, or even thousands of pounds extra) for the same car, in the same condition with the same mileage, in the event of a claim. I won't go into how much extra gets you how much more as that's a complicated question and depends on a number of factors - and besides which, I'm no expert. I just wanted buyers to be aware of the level of cover provided by Click 4 Gap. Having confirmed the above, I will now go with an alternative provider who will pay out more in the event of a claim. Sure I will be paying a little bit extra for the policy in the first place but in my opinion that little bit extra offers good value for money over a four year policy.

Given that Click 4 Gap are currently an affiliated link on the MSE website, it would be good to see them take corrective action to be clearer about the level of cover provided by their policy. They could very easily remove any uncertainty by being more transparent about the full definition of "mid-book value" in their policy documents. The fact they currently choose to hide this information and only make it available on request, and then only if very specifically requested, makes it more difficult for Joe public to fully understand the level of cover they are purchasing.

I truly hope this feedback is helpful.

Kind Regards
Magic Molly

Lucy_cars

I’ve just got my pay out from my car insurance after it being stolen, now looking for a new car and also this time I think Gap Insurance!

Some good discounts on MSE as well! Somethings still to check like if they would cover me if keys stolen and car taken!

Not sure about the post above by Magic Molly, what else could mid-book value be, other than the value in the middle of the book!? ��

Now aware of how quickly a new car depreciates in value, GAP certainly seems worth it!

Has anyone had it pay out if their car is stolen? Is there any small print around when GAP wouldn’t pay out if keys stolen with car?

Jubbajubz

Thank goodness I found this page instead of going for Toyota's very pricey policy. Gives piece of mind for those of us that are on finance. I'm glad at least I've been given breathing and research time by the sales representative. I was thinking oh no, not more debt but I managed to buy the policy online for a fraction of the price quoted. Phew!

JollyGreeNGiant

Sorted my GAP Insurance at motoreasy.com, was able to save a bit more money as i was adding alloy and cosmetic repair insurance at the same time

Very reasonably priced, came out less than others on here even with the MSE discount code.

Read a thread from a chap with a bike write off 3 weeks after taking the finance - he intended on adding GAP but forgot to. Painful.

Della_Jackson

Hi
I found this guide really helpful and the MSE discount code for Click4Gap was valid and worked on the site, giving us £32 off a 3yrs policy. We decided to go ahead with gap insurance because it was the first time we had brought a pre-registered new car and wanted some reassurance about getting our money back if it was written off. The garage (Honda) quoted us £395 for GAP but we got what we needed for a 3yr policy for under £100 (which includes the MSE discount). We are very pleased for the advice and discount, brilliant.