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!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Car finance & GAP insurance

Beaujolais7
Beaujolais7 Posts: 12 Forumite
Part of the Furniture Combo Breaker
Hello, we have a car on finance 1 year left to pay on a 3-year loan, we took out GAP insurance on buying the car to cover ourselves as we had a newish car written off a few years ago and GAP covered us. Our current car has mechanical issues where the repair cost is beyond economical repair, we have £2600 to pay on hp. Has anyone else been in this situation ?  It's the weekend and we can't get through to the HP or GAP company, to find out.
Many thanks

Comments

  • Gap is for stolen or written off isn’t it? Not sure it covers mechanical?
  • Grumpy_chap
    Grumpy_chap Posts: 20,950 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    My understanding of GAP matches @Deleted_User but what type of mechanical failure puts a "newish" car beyond economical repair?
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Gap insurance covers the difference between an insurance payout and the finance.

    Is this an insured claim?
  • Grumpy_chap
    Grumpy_chap Posts: 20,950 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Would GAP also payout if there was a Mechanical Breakdown Insurance in place?  I would expect not?
  • motorguy
    motorguy Posts: 22,639 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As per all of the above, GAP wont cover mechanical issues.

    What sort of mechanical failure are you seeing thats putting the car beyond economical repair?
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.6K Banking & Borrowing
  • 254.5K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.5K Work, Benefits & Business
  • 604.4K Mortgages, Homes & Bills
  • 178.6K Life & Family
  • 261.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.