Gap insurance, is this covered by fully comp?

Nuggy96

Hi,

I am getting a brand new car and looking at GAP insurance. My fully comp insurance has this in it "New car replacement: If your vehicle is 12 months old or less, you are the first registered keeper and it is written off or stolen and unrecovered we’ll replace it with one of the same make, model and specification if available in the UK or pay the market value at the time of the loss."

Is this the same as GAP insurance or is it different? as it says "market value at time of loss" so I wouldn't get the brand new car value?
Any ideas?

Mercdriver

It's different.  GAP will normally cover for 3 or more years according to how long finance is.  Under the terms of the fully comp you have cited it will only cover for the first year.  If you are financing the car on a PCP for example, it will be in negative equity until near the end of the term.

Nuggy96

Ahh ok, but for that first year, it is say the same as GAP, just I wouldn't get the other two years worth, so in first year if I did say write off, i would get the new car value back

EssexExile

From what you've posted it seems to give the insurance company the option of paying the "market value" instead of replacing it with a new one. I wouldn't consider that to be gap insurance.

Mercdriver

Nuggy96 said:

Ahh ok, but for that first year, it is say the same as GAP, just I wouldn't get the other two years worth, so in first year if I did say write off, i would get the new car value back

No they would replace the car like for like or give market value back.  You don't have to take GAP from the dealer.  If you are financing the car, it's worth getting a GAP product for the full term of the loan.  Plenty of products available online either to pay the outstanding or return to invoice which would put you in the place you were at the start of the finance term.

uknick

I would ask the insurance company to define "market value".  From the way you have quoted it, it could be interpreted as the current price of a new car if they can't source an actual car.  Otherwise, if they only give you 2nd hand market value it's no different to paying out for a car more than 12 months old that stolen or written off.

cranford

If you  cant sort this out  with your insurance co you could do some  research at a site such as Ala Gap insurance. You can try putting in 2 and 3 year terms and I think you will be surprised how small the difference in premiums is.