New Lease Car Insurance help

bery_451

Hi,

Im on MoneySupermarket comparing car insurance quotes for a new lease car being delivered estimated next month.

Moneysupermarket asks How much Roughly car is worth? Money supermarket still doesn't recognise the new 20 plate registration number I inputted so I got to fill in car details manually.
What price do I put in there? Shall I put the car manufacturer RRP or OTR price from their website? 
Moneysupermarket says insurers pay out the trade value. Shall I input trade value price and if so where do I find out the trade value price?

Where can I find GAP insurance cover add-ons on moneysupermarket?

An example case study scenario: 
After owning the car for 10 months the car gets stolen. Insurers pay out claim but will it satisfy the lease/finance company or will I be in shortfall because insurers paid out current market value which is less than the new RRP price 10 months ago? What is the difference between trade value and current market value? Cars are depreciating assets. Will the finance/leasing company be satisfied on a trade value claim payout insurance settlement cause obviously finance/lease company bought it at trade price right not RRP?

Which insurers automatically has GAP cover add-on included for new cars during the 1st year cover if car gets written off or stolen? Gap is not required for 2nd year of the lease right?

What it is I dont want to be in a shortfall to the finance/lease com if car is written off or stolen during the 1st or 2nd final year of the leasing contract you know what I mean.

Does inputting your driving license number on Moneysupermarket really give a extra discount off premiums?

Lastly I have a NCB/NCD no claims certificate from last year dated September. Is this still valid? On the certificate it displays my old address as I recently moved to a new address so will insurers cause me a problem if they see address on certificate doesnt match address on new insurance policy?

Finally does it matter the insurers policy address must match the address on the leasing contract? Will insurers pay out if address on leasing contract does not match insurers policy address? Does it matter cause I dont own the car as the logbook is owned by the finance leasing company.

Asking a lot questions and want to make sure I get it right for a new lease car.

bery_451

Hi coming back, any good advice?

Penelopa.Pitstop

It doesn't matter what value of the car is put in the form, because they will not pay that anyway. As you pointed out, you will get market value of the car, or rather your finance company. When choosing policy, you choose in registered keeper and owner fields: Leased - private. No insurer will offer new car replacement in first 12 months, because you are not registered keeper.

GAP - if you paid high initial payment, it might be worth covering it. Do google search for GAP for PCH insurance. When you find cheapest, go to ALA insurance, do the quote, put MSE25 in discount field and if it's more expensive then the one you found before, ask for price match.

NCD from September should be fine, they are accepted up to 2 years from the date of expiration of last policy.

dacouch

Most decent Insurers will replace the car with a brand new "Identical" model if it's written off in the first year so it is important you put the new replacement cost as the value
Some Insurers will not accept no claims bonus proof that is over three months old so I recommend you wither call the Insurers or thoroughly check their disclaimers etc and / or check the FAQs about no claims bonus on their website
Don't buy gap Insurance from the dealer as it will be over double the price you can source it from the open market
Moneysupermarket are incorrect, the Insurer should pay the replacement cost from a dealer, they are not allowed to pay out the trade value for the car if written off

Penelopa.Pitstop

dacouch said:

Most decent Insurers will replace the car with a brand new "Identical" model if it's written off in the first year so it is important you put the new replacement cost as the value

Only when you're first registered keeper, which is not the case with lease.

bery_451

Penelopa.Pitstop said:

It doesn't matter what value of the car is put in the form, because they will not pay that anyway. As you pointed out, you will get market value of the car, or rather your finance company. When choosing policy, you choose in registered keeper and owner fields: Leased - private. No insurer will offer new car replacement in first 12 months, because you are not registered keeper.

GAP - if you paid high initial payment, it might be worth covering it. Do google search for GAP for PCH insurance. When you find cheapest, go to ALA insurance, do the quote, put MSE25 in discount field and if it's more expensive then the one you found before, ask for price match.

NCD from September should be fine, they are accepted up to 2 years from the date of expiration of last policy.

Hi there was no initial deposit payment required for the lease deal. Just 24 monthly payments. So that means I do require GAP and how many types of GAP cover add-ons are there on the market and which is best value? ALA gap cover is cheapest?

bery_451

dacouch said:

Most decent Insurers will replace the car with a brand new "Identical" model if it's written off in the first year so it is important you put the new replacement cost as the value
Some Insurers will not accept no claims bonus proof that is over three months old so I recommend you wither call the Insurers or thoroughly check their disclaimers etc and / or check the FAQs about no claims bonus on their website
Don't buy gap Insurance from the dealer as it will be over double the price you can source it from the open market
Moneysupermarket are incorrect, the Insurer should pay the replacement cost from a dealer, they are not allowed to pay out the trade value for the car if written off

Okay is there like a moneysupermarket comparison site for Gap cover quotes?
Does Churchill replace with new identical model during the 1st year and do they accept no claims certificate under 2 years?
Lastly with most insurers is it declaring 3 years or 5 years of accidents past history?

Penelopa.Pitstop

Check this out and when buying use discount code MSE25 https://www.ala.co.uk/gap-insurance/contract-hire-gap-insurance
Regarding replacing car with new in 1st year, you have to be registered keeper. Do some leg work, go to Churchill website and read terms and conditions of their policy.  You should read T&C before buying any policy.

bery_451

Penelopa.Pitstop said:

Check this out and when buying use discount code MSE25 https://www.ala.co.uk/gap-insurance/contract-hire-gap-insurance
Regarding replacing car with new in 1st year, you have to be registered keeper. Do some leg work, go to Churchill website and read terms and conditions of their policy.  You should read T&C before buying any policy.

Okay you know any insurers that replace with new within 1st year for lease cars or Gap insurance is required for every lease car out there? What I dont understand is that the finance/lease company bought the car for trade price for around £5000 cheaper than the RRP price advertised on manufacturer dealer website. I know this because I can see it on the finance/lease agreement doc in front that I am about to sign displaying the OTR price which is around £5000 cheaper the RRP price.

So the question is in a event of a write off or stolen lets say 11 months down the line the insurer will pay out current market price that may be around 5k less than the RRP price at new 11 months ago anyway depending how fast the car depreciates. 

Okay for example lets say RRP is 20k, the finance/lease company bought it new at 15k Trade price, I crash the car 11 months down the line so insurers pays out current market value which is 15k cause care depreciated 5k in 11 months so the ultimate question will the finance/lease company be satisfied with insurer settlement in full without the need for Gap cover? Isnt it fraud or illegal for finance/lease company expecting  RRP price settlement via GAP as that will give them extra 5k for nothing for a asset they paid 5k less to begin with.

Is the finance/lease company obliged to inform insurers the true purchase trade price of the car?

This will help me decide to get GAP cover or not after looking at the depreciating asset charts as it all depends how fast a car depreciates in price right?

Shall I input the trade price or RRP price on moneysupermarket?
Kinda confused 

Penelopa.Pitstop

As stated 2 times before, there are no insurers that will replace car under 1 year for new if you are not registered keeper. Forget about this option at all, it does not apply to lease car, because finance company is the registered keeper and owner.

Lease company will expect settlement of market value. Whatever value you put on Moneysupermarket when looking for insurance when car is new, it won't change how much will be paid due to total loss later on. Insurance company will use market value of the car at the time of write off. So you can put recommended RRP or actual price from invoice, it doesn't matter really.

GAP insurance is for you, not for the lease company. They don't care if you buy it or not. You buy it just in case, to cover any negative amount between insurance payment and whatever lease company may decide to be their settlement amount. GAP is really cheap, did you check any quotes at all? You will probably waste more time than it's worth trying to work out if you should buy it or not.

I buy GAP for all my lease cars, just in case. It's small amount and it usually covers my initial payment too. Last one covered initial payment up to £3000 and was for 3 years, £50K invoice price of the car. It actually asked about monthly payments, not the value of the car.  I paid £120 for that. If you don't need initial payment cover, it will be much cheaper. Also, lower the value of the car, cheaper the GAP insurance.

bery_451

Penelopa.Pitstop said:

As stated 2 times before, there are no insurers that will replace car under 1 year for new if you are not registered keeper. Forget about this option at all, it does not apply to lease car, because finance company is the registered keeper and owner.

Lease company will expect settlement of market value. Whatever value you put on Moneysupermarket when looking for insurance when car is new, it won't change how much will be paid due to total loss later on. Insurance company will use market value of the car at the time of write off. So you can put recommended RRP or actual price from invoice, it doesn't matter really.

GAP insurance is for you, not for the lease company. They don't care if you buy it or not. You buy it just in case, to cover any negative amount between insurance payment and whatever lease company may decide to be their settlement amount. GAP is really cheap, did you check any quotes at all? You will probably waste more time than it's worth trying to work out if you should buy it or not.

I buy GAP for all my lease cars, just in case. It's small amount and it usually covers my initial payment too. Last one covered initial payment up to £3000 and was for 3 years, £50K invoice price of the car. It actually asked about monthly payments, not the value of the car.  I paid £120 for that. If you don't need initial payment cover, it will be much cheaper. Also, lower the value of the car, cheaper the GAP insurance.

If GAP is cheap like you say then I dont mind getting it but you said lease/finance company will be happy with market value payout settlement. 

The question is how does insurers determine the market value and how do lease/finance companies determine the market value? Is there like a standard like charts or statistics that both insurers and lease/finance company both can agree on?

The open market determines the market value right, not insurers or lease/finance company so question is GAP really needed in the 1st place?