RTI gap insurance

DiseasedBunny

Hoping to pick my new car up next month (dealer says it will be ready, but not had an update yet 🤣).  Anyway, the car is £22k, so I need gap insurance for the 3 year pcp.  

If it gets written off, with RTI gap insurance, say it’s now worth 15k, does the gap insurance top me back to 22k, or just the difference between what it’s worth and what I owe? (So in the above example if I owed 18k, gap would pay the 3k difference?).  

shiraz99

If I were you I'd get vehicle replacement GAP over RTI every time. Also, I hope you're not thinking of taking the insurance offered by the dealer instead of shopping around for much cheaper GAP elsewhere.

In answer to your question though, the GAP insurance will pay out up to the full invoice amount with RTI.

MX5huggy

It’s brand new car? Yes.

RTI as said pays the difference between the insurance payout and the invoice value of the car. 

Vehicle replacement pays the difference between the insurance payout and the cost of replacing the car with a new one like for like at the time of the claim. Because car prices are rising fast this is more valuable than it was if in 3 years time the same car is 30% more expensive to buy you are better off, than with RTI.

Finance shortfall GAP pays the difference between the insurance payout and any outstanding balance on the finance so you have a clean slate to get a new finance agreement. 

DullGreyGuy

Just to add to MX5huggy's comment RTI and VR GAP does normally include Financial/Traditional GAP too and so if the difference between the balance and the insurance payout is greater than the difference between the payout and the invoice or replacement vehicle then it will pay that instead... realistically would only happen if you trash the car/have it stolen very shortly after purchase but still good to know.

DiseasedBunny

shiraz99 said:

If I were you I'd get vehicle replacement GAP over RTI every time. Also, I hope you're not thinking of taking the insurance offered by the dealer instead of shopping around for much cheaper GAP elsewhere.

In answer to your question though, the GAP insurance will pay out up to the full invoice amount with RTI.

Thanks, yes dealer RTI was £495, same 3rd party RTI was £105-124.  Will look at vehicle replacement gap too.