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  • FIRST POST
    • MSE Rosie
    • By MSE Rosie 18th Dec 15, 9:35 AM
    • 80Posts
    • 36Thanks
    MSE Rosie
    Gap insurance - guide discussion
    • #1
    • 18th Dec 15, 9:35 AM
    Gap insurance - guide discussion 18th Dec 15 at 9:35 AM


    Hi all,

    We've written a new Gap Insurance guide and would love your feedback.

    How did you find the info? Was it useful? Have you had a good or bad experience when buying gap insurance?

    Thanks for your help!

    MSE Rosie
Page 4
    • dacouch
    • By dacouch 15th May 18, 10:01 PM
    • 20,600 Posts
    • 12,765 Thanks
    dacouch
    I wondered? Has anyone had a problem with GAP insurance paying out? Our policy is asking us to go back to our main insurer as they are saying they have underpaid.. The reason we bought GAP insurance was to minimise the hassle, and this doesn't seem to be the way forward.
    Originally posted by one_more_query
    Some policies are subject to the car insurer paying out what the GAP Insurer define to be the true value of the written off car. If they deem the car Insurer to have under paid for the car, the Gap insurer will limit their pay out to the difference they believe which mnay leave you out of pocket

    Some of the better newer policies do not have this requirement although they may ask you to go back to the car insurer if they believe they are grossly under valuing the vehicle
    • netloser
    • By netloser 14th Jun 18, 2:30 PM
    • 6 Posts
    • 1 Thanks
    netloser
    ??Betterment??
    Am I missing something? 4 year GAP insurance on say a Citroen. Say it costs £15000 to buy new and after 3 years it is worth 30% of that, so £4500. At 3+ years old it doesn't take much to write it off and Aviva or whoever generously settle for £4000. Gap gives you £11000 and you get a new car. Result better than Betfair!!



    Why don't we see more torched nearly 3 year old cars about? Or have I missed something?
    • lostinheaven
    • By lostinheaven 15th Jun 18, 1:58 PM
    • 189 Posts
    • 102 Thanks
    lostinheaven
    Am I missing something? 4 year GAP insurance on say a Citroen. Say it costs £15000 to buy new and after 3 years it is worth 30% of that, so £4500. At 3+ years old it doesn't take much to write it off and Aviva or whoever generously settle for £4000. Gap gives you £11000 and you get a new car. Result better than Betfair!!



    Why don't we see more torched nearly 3 year old cars about? Or have I missed something?
    Originally posted by netloser



    Better still, what if the new equivalent Citroen had (by the time of claim) increased from £15,000 to £16,000... Invoice GAP insurance might well pay you £11,000 but a Replacement GAP insurance policy would be paying you £12,000!


    There's no doubt that GAP insurance lends itself to fraud but, don't forget though that it's the motor insurer working on the front-line so to speak. Ultimately, the motor insurer has to declare the claim valid and offer settlement before the GAP insurance policy can be called upon and (allegedly at least) they're going to ever greater levels to detect and prevent fraud.
    • cashlady
    • By cashlady 11th Jul 18, 3:19 PM
    • 809 Posts
    • 13,729 Thanks
    cashlady
    Saved Money
    Hi just to let people know that i was offered gap insurance on my new used car by the dealer for nearly £400.i used the site and got a deal for £125 including a 25% discount using a code from this site,thank you for the info and the saving.
    • cashlady
    • By cashlady 11th Jul 18, 3:27 PM
    • 809 Posts
    • 13,729 Thanks
    cashlady
    It worked for me
    • carob31
    • By carob31 10th Aug 18, 1:33 AM
    • 1 Posts
    • 1 Thanks
    carob31
    Gap Insurance
    Was contacted today by dealer linked Gap Insurer who took the " Responsible lender" approach until the "sell" became apparent. Offered me interest free policy of just under £400 for the year. I had to repeat myself several times to have 24hrs to think about it not knowing that 2 day rule. Went online to research and via MSE, established that it would be best to take out GAP insurance and after a few links and quotes bought a policy for under £80 a saving of £320. I say that's a result!

    Thank you MSE!
    • iain545
    • By iain545 14th Aug 18, 3:15 PM
    • 1 Posts
    • 0 Thanks
    iain545
    New Car Written Off Query
    Hello

    Hoping someone can shed some light on this, I have read through most of the previous post and haven't seen anything similar so sorry if it has been previously discusses.

    Recently bought a brand new Seat on PCP and looking into GAP insurance. As mentioned before by others, my insurance also will replace my car for new within the first 12 months so was thinking of holding off getting GAP insurance. However if my car is written off within the first 12 months and its is someone else's fault and they admit liability. Will their insurance company also agree to replacing the car as it is new within 12 months or will they just offer the bog standard market valve?

    Thank you and hope I have explained this well enough.

    Thank you
    • lostinheaven
    • By lostinheaven 14th Aug 18, 3:42 PM
    • 189 Posts
    • 102 Thanks
    lostinheaven
    Hello

    Hoping someone can shed some light on this, I have read through most of the previous post and haven't seen anything similar so sorry if it has been previously discusses.

    Recently bought a brand new Seat on PCP and looking into GAP insurance. As mentioned before by others, my insurance also will replace my car for new within the first 12 months so was thinking of holding off getting GAP insurance. However if my car is written off within the first 12 months and its is someone else's fault and they admit liability. Will their insurance company also agree to replacing the car as it is new within 12 months or will they just offer the bog standard market valve?

    Thank you and hope I have explained this well enough.

    Thank you
    Originally posted by iain545

    To be sure, you'd have to be claiming on your own motor insurance policy for the total-loss new-for-old replacement vehicle (your insurer would then pursue the third-party insurer for reimbursement).


    Also, by waiting to buy GAP insurance, you're likely only going to end up paying more in the long-run. Usually the more time that has passed since you took ownership of the vehicle the more expensive the GAP insurance policy is at the time you buy it and that assumes that providers don't increase their prices further during the time that you're waiting and further, that they don't revise their eligibility criteria e.g. I'm aware of a number of GAP insurance providers who used to allow you to buy GAP insurance up to a year after taking delivery who have in more recent times reduced that timescale down to six-months or less.



    A better approach would be to buy GAP insurance "now" but elect to delay the start date by a year from first registration. This way you secure today's (cheaper) price (companies that allow you to defer the start date don't usually charge a fee to do so) but you'd still benefit from GAP insurance cover in later years.



    However, New-For-Old cover from your motor insurer probably isn't as simple as you might think and, comes with its own risks. Have a read of this.


    HTH
    • longieuk
    • By longieuk 28th Aug 18, 7:58 PM
    • 1 Posts
    • 0 Thanks
    longieuk
    LV Insurance - cover 1st year of GAP
    Hi All,

    I have just spoken to LV about the need to GAP insurance, and they informed me that they cover the full cost of the original cost of the car for year 1.. does anyone know if this is the case, I have had a look at their policy.. but not sure.. and thus assume I get the GAP insurance now, and delay by 12 months ??
    • kolloth
    • By kolloth 5th Sep 18, 11:14 AM
    • 4 Posts
    • 2 Thanks
    kolloth
    Just curious about this.
    is this going to become the 'new ppi' where old gap sales can be claimed against mis-selling due to the 2015 ruling?
    can you claim against gap from over 10 years ago?


    I can see the adverts now!!!
    • lostinheaven
    • By lostinheaven 5th Sep 18, 2:45 PM
    • 189 Posts
    • 102 Thanks
    lostinheaven
    Hi All,

    I have just spoken to LV about the need to GAP insurance, and they informed me that they cover the full cost of the original cost of the car for year 1.. does anyone know if this is the case, I have had a look at their policy.. but not sure.. and thus assume I get the GAP insurance now, and delay by 12 months ??
    Originally posted by longieuk

    See my post above. Specifically the link in my last paragraph.


    Just curious about this.
    is this going to become the 'new ppi' where old gap sales can be claimed against mis-selling due to the 2015 ruling?
    can you claim against gap from over 10 years ago?


    I can see the adverts now!!!
    Originally posted by kolloth

    It's going to be interesting for sure. In more recent times insurers in the US and OZ have been ordered to refund customers who were overcharged for GAP insurance and/or provided with unsuitable policies - by their affiliated Motor Dealers, going back years.


    The FCA here in the UK though have been fighting unscrupulous motor dealers half-heartedly to say the least. Even in a recent study they themselves published of the effect of their 2015 rules, they admit that the new rules haven't had the effect that they'd hoped for.


    Personally, I think that the writing is on the wall for UK motor dealers selling GAP insurance. Inferior policies at absurdly inflated prices and no real sign of that changing mean that the FCA are going to have to take a harder line with motor dealers at some point.


    For now though, people should buy GAP insurance from a specialist broker. Superior cover at a fraction of the cost compared to motor dealer policies.
    • boingingian
    • By boingingian 7th Sep 18, 9:12 PM
    • 9 Posts
    • 2 Thanks
    boingingian
    Driving Tuition
    I canít seem to find GAP Insurance that covers buying a vehicle that will be used for driving tuition.
    Iím picking up a new Seat tomorrow and not even the dealer can offer it me.
    Any idea why? Itís on a PCP with 20K miles per year. Just seems ridiculous to not offer it, even at a higher price if we are deemed higher risk.
    • lostinheaven
    • By lostinheaven 10th Sep 18, 1:45 PM
    • 189 Posts
    • 102 Thanks
    lostinheaven
    I canít seem to find GAP Insurance that covers buying a vehicle that will be used for driving tuition.
    Iím picking up a new Seat tomorrow and not even the dealer can offer it me.
    Any idea why? Itís on a PCP with 20K miles per year. Just seems ridiculous to not offer it, even at a higher price if we are deemed higher risk.
    Originally posted by boingingian

    These guys: https://www.insurevip.co.uk/products.html mention GAP insurance for driving schools on their website (see the page I've linked to) it might be worth giving them a shout?
    • Jlo31
    • By Jlo31 10th Sep 18, 11:26 PM
    • 84 Posts
    • 30 Thanks
    Jlo31
    I canít seem to find GAP Insurance that covers buying a vehicle that will be used for driving tuition.
    Iím picking up a new Seat tomorrow and not even the dealer can offer it me.
    Any idea why? Itís on a PCP with 20K miles per year. Just seems ridiculous to not offer it, even at a higher price if we are deemed higher risk.
    Originally posted by boingingian
    Greetings. I am a driving instructor to and used these people who insured driving schools. https://shortfall.co.uk

    Cheers

    Jlo
    • 1230EX
    • By 1230EX 1st Oct 18, 11:56 AM
    • 4 Posts
    • 0 Thanks
    1230EX
    Ford Ecoboot Engine Fires
    Saw on the BBC today Ford are recalling/repairing/refunding lots of Ecoboost engines that are catching fire

    a) surprised to hear this still happens in 2018

    b) I'd be surprised if the Ford payouts are for the original value rather than the considerably lower "market rate" - anyone know?

    Certainly happy/relived I'm covered - MSE have an ALA promo but I found cheaper elsewhere (MotorEasy)

    The key thing is don't buy it from dealers!
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