Gap Insurance

Cobby

Quite correctly MSE point out that most car insurance companies will offer vehicle replacement cover if a vehicle is written off within one year so you may not need GAP insurance.
Take care with Hastings Direct car insurance. They offer replacent vehicle cover if your vehicle's damage would cost 60% or more of the vehicles value on the day of an accident. However they will write a vehicle off if the damage would cost 50% or more of the vehicles value on the day of an accident.
As you can see if the damage cost is between 50-60% they will not provide a replacement car. And it is Hastings Direct who decide if the cost is over 60%!!!!

Graculus2112

Just adding a further note of caution - a growing number of PCP finance providers will not accept a replacement vehicle if the car is written off during the first 12 months, demanding a cash settlement instead. Unfortunately a growing number of motor insurance companies will only pay out to MARKET VALUE under these circumstances. This means that you may not have the gap cover you think you do.


If you *are* happy with the new-for-old cover provided by your motor insurance, bear in mind too that you may not be able to find subsequent GAP insurance if you wait until the first year is up, as few providers can offer cover if you've owned the vehicle for more than 3-6 months or are able offer deferred-start policies.


Finally, check out the underwriting carefully - FIVE unrated insurers have gone bust since 2016, so it's advisable to select policies with A-rated underwriting.

BJV

Sorry  Graculus2112 said:   
That is actually a bit of a wild goose chase. 

Finally, check out the underwriting carefully - FIVE unrated insurers have gone bust since 2016, so it's advisable to select policies with A-rated underwriting.

TBH the main criteria should be are they protected by the FSCS not are they rated. Sorry yes they have less chance of something going wrong but just like un rated insurer's if they did it would not matter as long as they are protected ? 

tn9ae

If I have a  5 years HP deal - is it preferred to get a 5 years GAP insurance or purchase a 4 year GAP and purchase a 1 year GAP after 4 years?

DoubleMackem

Hi,
Just about to pick up my new car, a 4 year PCP deal.  I am trying to get my head round the GAP insurance issue.  My comprehensive car insurance will replace my new car if written off or a total loss during the first year.  I assume this will satisfy the PCP company (Hyundai). I therefore need to purchase GAP insurance for the remaining 3 years.  Do I buy this now, or wait 11 / 12 months to buy the policy? If I buy it now, will it be a 4 year policy, or 3 year policy as my own fully comp covers first year.  Hope this makes sense.  Thanks.