Gap Insurance

LouiseAH

Hi, Looking to purchase a new car on PCP Finance to get a better deal and pay the car off after 6 weeks. The dealership have offered me free 4 year Gap Insurance. The car is 20K, how much roughly would I have paid for 4 years Gap Insurance if they hadnt included it for free.

Bigwheels1111

Why six weeks.

On the day you get the car pay it off, no fees or interest.

14 cooling off period or such like.

LouiseAH

It will be 3-6 weeks depending on the delivery time of the new car and when a current investment matures. My question was about cost of the Gap Insurance.

boobyd

LouiseAH said:

Hi, Looking to purchase a new car on PCP Finance to get a better deal and pay the car off after 6 weeks. The dealership have offered me free 4 year Gap Insurance. The car is 20K, how much roughly would I have paid for 4 years Gap Insurance if they hadnt included it for free.

Depends on what the Gap Assurance provided is there are mainly 4/5 different types/cover

prettyandfluffy

Google "gap insurance" and get a couple of quotes.

Bigwheels1111

LouiseAH said:

It will be 3-6 weeks depending on the delivery time of the new car and when a current investment matures. My question was about cost of the Gap Insurance.

I know, but as you are not paying for Gap, but will be paying interest and fees.

I though that was more important.

daveyjp

And if the free GAP is a finance GAP product it will be of little use if you are paying off the finance shortly after buying the vehicle.

DullGreyGuy

LouiseAH said:
The car is 20K, how much roughly would I have paid for 4 years Gap Insurance if they hadnt included it for free.

Like car insurance (Third Party Only, Third Party, Fire & Theft, Comprehensive) there are three main versions of GAP insurance:

Financial/Traditional - pays the shortfall between the insurance settlement and the outstanding finance

Return to Invoice - pays the shortfall between the insurance settlement and what you originally paid for the car

Replacement Vehicle - pays the shortfall between the insurance settlement and what you'd need to pay today for the same original car (ie protects against inflation)

The policies can also be layered so can be RTI and Financial and will payout whichever is the higher of the two.


How much the policy is worth will depend on which type it is and the quality of the cover. Similarly how much value it has to you once the finance is cleared will also depend on the type... financial GAP becomes irrelevant if you have no finance. 

pclarkie

I read through the article, looked at the three suggested sites, and found insurance cover very easily.  Went with Click4Gap, which was very competitive with the MSE code.  Whilst in the process of buying cover a really pleasant representative from C4G rang to enquire if I had any questions.  All-round, and good experience. 

LouiseAH

pclarkie said:

I read through the article, looked at the three suggested sites, and found insurance cover very easily.  Went with Click4Gap, which was very competitive with the MSE code.  Whilst in the process of buying cover a really pleasant representative from C4G rang to enquire if I had any questions.  All-round, and good experience. 

I was just going to click on the Thanks and noticed that's your first post on the forum.