Car GAP Insurance

throughtheblue

I'm buying a car on PCP, but intend to cancel within 14 days and pay the amount owed with a loan.

I'm taking out GAP insurance, and it asks how I bought the car, so I've ticked 'Via PCP', however, once I've settled the amount with the finance the company, presumably my GAP insurance would no longer be valid?

Would I need to cancel the initial GAP insurance within the cooling-off period, then get another quote, or if I phoned them would they just adjust that information?

Thanks

Bigwheels1111

I would call the Gap firm and ask them.

DullGreyGuy

What type of GAP are you buying?

If it's just Financial GAP then yes the policy will no longer be valid but you'll have no need for the policy either. If its RTI or VR then the policy will still be valid but you may be paying more than you need to because its likely it will also include Financial GAP and will payout the greater of the two. 

throughtheblue

DullGreyGuy said:

What type of GAP are you buying?

If it's just Financial GAP then yes the policy will no longer be valid but you'll have no need for the policy either. If its RTI or VR then the policy will still be valid but you may be paying more than you need to because its likely it will also include Financial GAP and will payout the greater of the two. 

ALA actually group PCP and Loan purchase together, so I think it would still be covered if I cancelled the PCP and used a loan, but I will check with them

The car is 4 years old from a main dealer. I'm thinking of getting Return to Invoice GAP as I'm not too concerned about a potential price increase.

Although, I was thinking VR with ALA that they source the same spec vehicle for you, but really it covers what you paid and extra if the cost of that vehicle has increased?

Bigwheels1111

7 years ago I purchased a Peugeot 5008, 3 months old with 8 miles on the clock £14,350.

I took out Gap with, Total loss gap.

Cover 5 years at £200.

Cash buy.

Cover was, A like for like replacement.

3 months old and 8 miles.

Had a bit of a ding with a bus but was not a write off.

Would have been nice if a write off as new model 5008 was out and to replace like for like would have cost them 30k.

On top of my cars write off value.

DullGreyGuy

Its not on top of the settlement value