gap Insurance - any advice on reputable providers?

thisisthecount

No idea where and who would be a safe bet for Hal insurance for my business lease vehicle? 

TadleyBaggie

Been happy with ALA.

Bigwheels1111

Be quick as all gap insurance is being pulled at the end of the month.
Will no longer be available for a while.
https://www.insurancetimes.co.uk/news/remaining-gap-providers-told-to-pause-sales-of-product-by-fca/1451306.article

thisisthecount

Wow this looks interesting. Still haven’t a clue who to choose and even more worried now 😞 

thisisthecount

TadleyBaggie said:

Been happy with ALA.

they look pretty good on the surface? 

Stateofart

Waste of money.  It's a big con.

thisisthecount

Stateofart said:

Waste of money.  It's a big con.

oh really, so none of them are worth going for? 

400ixl

Stateofart said:

Waste of money.  It's a big con.

So what makes it more of a con than any insurance based product?

Chances of you needing to claim against it is low, same as pretty much any of them, but the pay out could be into the thousands.

As with all insurances its a risk game for both sides and different people have different outlooks on risks and benefits.

At the end of the day, the main insurance is designed to put you back in a position you were in as of the day of the incident. Gap insurance is designed to put you back in the position of the time of purchase.

If it was say £200 for a 2 year policy to cover a £2000 car then given the likelyhood to claim in that period and the relatively small depreciation of a car of that age meaning a low gap to fill then probably not worth it.

If it was £300 on a 5 year policy to cover a £60,000 car then there is a longer cover period, increasing the likelyhood of claiming and a higher depreciating vehicle with potentially a gap of £10,000+ in later years it could be a worthwhile investment.

thisisthecount

400ixl said:

Stateofart said:

Waste of money.  It's a big con.

So what makes it more of a con than any insurance based product?

Chances of you needing to claim against it is low, same as pretty much any of them, but the pay out could be into the thousands.

As with all insurances its a risk game for both sides and different people have different outlooks on risks and benefits.

At the end of the day, the main insurance is designed to put you back in a position you were in as of the day of the incident. Gap insurance is designed to put you back in the position of the time of purchase.

If it was say £200 for a 2 year policy to cover a £2000 car then given the likelyhood to claim in that period and the relatively small depreciation of a car of that age meaning a low gap to fill then probably not worth it.

If it was £300 on a 5 year policy to cover a £60,000 car then there is a longer cover period, increasing the likelyhood of claiming and a higher depreciating vehicle with potentially a gap of £10,000+ in later years it could be a worthwhile investment.

fair point. Recently I write off my car which was a lease car valued 5 years ago at 50K. I didn't have GAP insurance. I'm hopefully going to be ok as its been an extended lease (very rare) - but had it had been year 1-3 it would have been a different story. For the sake of £170 for 3 years (ALA quoted me) for a vehicle which is 77K I "think" its a good deal. That said, the question is... are they going to pay out which I would hope so. This is the concern I have I guess...

Bigwheels1111

If my car had been written off, I would of been thousands ahead.

Pre reg Peugeot 5008 with 8 miles on the clock. Old shape. 47% discount on new.

5y Policy £200.

My deal was a like for like replacement.

So New SUV shape replacement one owner and 8 miles, At the time of crash was around 40K.

I paid £14.350 for my car so a profit of £25k.

I think that would have been quite good.

DullGreyGuy

GAP via dealers did used to be terrible value... I once worked for an intermediary, the insurer charged £100 and did all the work post sale. We sold the policy to dealerships for £200 and dealerships sold it to customers for £400. The dealerships could have cut us out, maybe they'd have paid £133 or something as they didnt have our buying power but they were lazy and preferred to buy their finance and insurance from a single provider. 

What is fair markup/margin etc could become a hornets nest if anyone really wanted to dig into it. Once dealt with a Fine Art policy that was £10m per year but the broker was taking 60%. Now they are clearly doing more work than the old dealerships preparing the inventory of art being insured etc but £6m a year seems more than a little toppy (policy had been running at least a decade)