Level of GAP insurance cover I need?

King_Mustard

A few days ago, I bought a car on a 37-month (3-year) PCP plan.

The value of the is £23,910 and I pay £245 per month.

I want the car covered whether there was an issue (e.g. written off or stolen) tomorrow or in 35 months, for example.

As an example, ALA's claim amounts start at £7,500 and go up in £2,500 increments to (and beyond) £22,500.

Could anyone help?

DrEskimo

GAP will cover the shortfall between your insurance valuation, and either:
1/ the amount needed to settle the finance, if it's finance GAP,
2/ the invoice amount , if it's Return-to-Invoice GAP,
3/ the cost of a direct replacement vehicle, if it's vehicle replacement GAP.

So if you go on the assumption that the minimum valuation your insurance company will give you at 37-months is 50%, then you need to make sure your level of GAP is 50% of the vehicles value if you have return to invoice GAP (i.e. £12k.).

You will probably find that there is no difference in the price of the GAP policy even if you go for cover that is the entire cost of the car.

Of you could get a policy that has no limit, like from TotalLossGap. It also only provides one policy, which includes finance, return to invoice and vehicle replacement GAP. You get whichever is highest. I also found them to be cheaper than ALA, even with the discount code.

King_Mustard

DrEskimo wrote: »

GAP will cover the shortfall between your insurance valuation, and either:
1/ the amount needed to settle the finance, if it's finance GAP,
2/ the invoice amount , if it's Return-to-Invoice GAP,
3/ the cost of a direct replacement vehicle, if it's vehicle replacement GAP.

So if you go on the assumption that the minimum valuation your insurance company will give you at 37-months is 50%, then you need to make sure your level of GAP is 50% of the vehicles value if you have return to invoice GAP (i.e. £12k.).

You will probably find that there is no difference in the price of the GAP policy even if you go for cover that is the entire cost of the car.

Of you could get a policy that has no limit, like from TotalLossGap. It also only provides one policy, which includes finance, return to invoice and vehicle replacement GAP. You get whichever is highest. I also found them to be cheaper than ALA, even with the discount code.

Total Loss Gap's Policy Summary doesn't seem to mention if theft is covered?

DrEskimo

"This type of insurance can only be claimed on if the motor insurer writes off the vehicle. This can be after an accident, fire, flood or theft."

https://totallossgap.co.uk/gap-insurance/759#How%20are%20you%20protected?

Got me worried there...! But yea it does include theft. Theft with the keys is complicated a little bit by what your primary insurance will cover, but it does cover theft with keys as well.