GAP insurance for PCP Questions

Louie1212

I was very confused to how a GAP insurance works for a PCP deal, I have a RTI Cover and I wanted to know what I am actually covered for, for example if there was a write off (god forbid) would I be awarded the total amount of the car from when I got it which was £12,000 or would I only receive the amount for the settlement figure, Its ringing on my head as I don't know if GAP insurance was a good idea as I didn't really understand the purpose of it but the salesman was good with persuading me.

Please Help, if anything I will just cancel it if there isn't good cover if anything happens to my car.

Lagamorph

Your standard car insurance will only pay whatever the current market value is for the car.

So say your Finance agreement currently has £10,000 remaining on it to pay, but your cars market value is only £8,000.
If your car is written off your car insurance will only pay you £8,000, and you will have to pay the remaining £2,000 from your own pocket.

GAP insurance will cover you for that remaining £2,000.

Louie1212

I thought that GAP would pay the difference between the purchase price of the car and the market value and insurance pay of the value of the car?


so the car was purchased for £12,000 and it markets at £6000 Gap should provide me with £6000 as insurance would pay of the other £6000?

thats what I understood from the salesman

noh

Louie1212 wrote: »

I thought that GAP would pay the difference between the purchase price of the car and the market value and insurance pay of the value of the car?


so the car was purchased for £12,000 and it markets at £6000 Gap should provide me with £6000 as insurance would pay of the other £6000?

thats what I understood from the salesman

Yes that would be the case if you owned the car outright.

You have RTI (return to invoice) GAP cover.

Your car is being purchased via PCP. In the event of a write off the insurance company would pay the market value of the car to the finance company.
The GAP insurer would pay any outstanding finance amount to the finance company.
If the total amount of finance is less than the invoice price then the diiference goes to you.

Louie1212

I understand, so would I not receive any money at all in any event from the GAP insurance? it will only just settle the settlement figure and pay of the PCP?

Louie1212

Thank you so much LostInHeaven, I really appreciate your help!, you've made it very Clear for me, I will take your advise.

Louie1212

I have just one last query, even tho I am on a RTI on a PCP deal in the event of a write off or total loss would I still receive the full amount of the purchase price (£12000).


Allso would it still matter if even there was for example..3 months left on the contract would this still be covered
(The full value of the car) on the PCP deal, would the GAP insurance still provide me with the purchase price.


Thanks

Louie1212

Anyone know? ^^

Louie1212

Guys, would be greatly appreciated if someone could answer my question above.


Thanks

Bluebird74

From my understanding RTI would give you the original invoice figure hence you could have money left over once you've paid off the credit due.

However RTI can be much more expensive.

Louie1212

Thanks mate so even on a PCP deal RTI will still involve you full amount paid for car