We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
PCH and GAP insurance
michael8626
Posts: 134 Forumite
Hi
Looking for some advice, I am about to lease a car on PCH for two years. Vehicle invoice value is £22k, I am fully comprehensive with Direct Line, do I need GAP insurance please?
Thanks in advance!
Looking for some advice, I am about to lease a car on PCH for two years. Vehicle invoice value is £22k, I am fully comprehensive with Direct Line, do I need GAP insurance please?
Thanks in advance!
0
Comments
-
do I need GAP insurance please?
No. You are not required to take it out. Whether you decide to do so though is a different matter.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
This thread might be of use, regarding GAP. With real life examples what happens when car is written off.
https://forums.moneysavingexpert.com/discussion/comment/77295238
0 -
If you write the car off, your leasing co will calculate a settlement figure that you'll owe them. Most of it will come from your car insurance but depending on the leasing co they might also charge you for the rest of your monthly payments until the end of the contract, plus admin fees etc, so there may be a shortfall. PCH gap insurance will cover that and some (I have it from gapinsurance.co.uk) can cover you for your initial deposit, which is often 3 or maybe 6 times the monthly payment). If your car insurer will replace the car with a new one in the first year, check it's valid for leased cars - often it isn't as you won't be the registered owner & keeper (that's the leasing co.).
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards