All inclusive insurance

Cucela

Hi There, 

Just about to purchase my first car and wondering if there is an insurance that would cover it all? For example I am looking at taking out warranty insurance, but unable to find one that would include GAP and RTI. Welcome any advise! 

AdrianC

RTI is a type of gap - it covers you back to the invoice value, instead of just the finance shortfall.

If you're buying a brand new car, then RTI makes sense.
But if you're buying a brand new car, why do you need an aftermarket warranty?

If you're buying a newish used car, why isn't it coming with a warranty?
Do you need gap, given it won't be depreciating as steeply as new?

If you're buying an older car, then is a warranty worthwhile? And why do you need gap at all?

Flight3287462

OP if you are not careful (assuming brand new car) the salesman will take you to the cleaners with lost of snake oil treatments for your upholstery and paintwork.  Just say no thanks.

A service package might be worth looking at but run the numbers.

Sandtree

Cucela said:

Hi There, 

Just about to purchase my first car and wondering if there is an insurance that would cover it all? For example I am looking at taking out warranty insurance, but unable to find one that would include GAP and RTI. Welcome any advise! 

If you really mean it all... no

Your first problem is that car insurance is sold on an annual policy basis where as warranty and GAP/RTI  are typically multi year policies. A former associate did attempt to glue together car insurance and GAP on an annual basis to create a fixed valuation car insurance but the pricing came out terrible so he abandoned the idea.

Your next issue is that many warranties are not insurance. Making something an insurance product adds a lot of cost because of the reporting to the regulators, capital reserving, a host of appropriately qualified role holders you need etc. Many warranty providers spend a lot of time and money to ensure it falls outside of insurance legislation. 

AdrianC

Sandtree said:

A former associate did attempt to glue together car insurance and GAP on an annual basis to create a fixed valuation car insurance but the pricing came out terrible so he abandoned the idea.

Isn't that just "agreed value"? Common in the classic and specialist car markets.

Sandtree

AdrianC said:

Sandtree said:

A former associate did attempt to glue together car insurance and GAP on an annual basis to create a fixed valuation car insurance but the pricing came out terrible so he abandoned the idea.

Isn't that just "agreed value"? Common in the classic and specialist car markets.

Yes, but he wanted to introduce it to mass market consumer insurance not just classic and specialist and as a broker by background he tried to do it by packaging two products.