GAP insurance for PCP

Litchielou · 3 January 2018 at 7:48PM

We are in the process of getting a new car via PCP scheme and the salesman mentioned GAP
Insurance but when I have looked on line I can get it nearly £200 cheaper my questions are
is it best to look on line or go through the dealer, also if doing myself had anyone got any recommendations for companies.
And is there anything else I should be insured for (I have normal car insurance) eg for knocks, chips etc.
Thanks for your help.

Quentin · 3 January 2018 at 8:40PM

You can read up on gap insurance in this mse article:

https://www.moneysavingexpert.com/car-insurance/gap-insurance

Don't buy insurance from the car dealer!!

TadleyBaggie · 3 January 2018 at 10:38PM

Quentin wrote: »

YDon't buy insurance from the car dealer!!

Agreed...unless you get a very good deal. In my case if I took out the GAP with them (£399) they would throw in free servicing which would have cost me about the same or more.

tonyh66 · 4 January 2018 at 7:03PM

car dealer will also add gap to finance, so you pay interest on the gap ins/service deal for the length of the finance term.

jonboyuk · 7 December 2018 at 12:46PM

Sorry to jump on the back of this thread, but I've just acquired a brand new car (PCP agreement), but refused the GAP insurance. I do want it, just not at £499 which is what they quoted me!

Reading the article posted above, I'm slightly confused. It says:

You don't need it if the car's less than one year old and have fully comp (which is true in both cases for me).

Then it follows:

It might be useful for you if you want a brand new car
This is also true for me.

So if I don't take GAP out during the first year, can I then take it out after using the car for a year? I'm so confused!

jonboyuk · 9 December 2018 at 11:48PM

lostinheaven wrote: »

In short, check the specific terms of your motor insurance policy very carefully BEFORE committing to not having GAP insurance in the first year (and prepare to fight your case if you ever need to claim under the new-for-old section of your motor insurance).

Thank you very much. That's a very good answer (probably the best I've ever had on a forum!)

So, I tend to use Admiral and this is their policy wording:

"If your car is 12 months old or less and you are the first registered keeper and the car is stolen and un-recovered, or deemed a total loss, we will replace your car with one of the same make, model and specification.

The car must be supplied as new in the UK, and we must gain authorisation from anyone who has an interest in it. Your car won’t qualify for this benefit if it is purchased under a finance or lease agreement where ownership does not pass on to you."

So it doesn't refer to 'availability' but it does refer to 'interest'. So I'm with VW Finance on a PCP agreement, so presumably I need to call them to clarify? I know with a PCP ownership does pass onto me (should I choose it) so I'm not worried about that. What do you think?

I found that totallossgap.co.uk can provide me GAP for a replacement vehicle for circa £150 (with one year of deferral). I guess it boils down to VW finance and their approach to my insurers in the first year...?

jonboyuk · 10 December 2018 at 9:32AM

You make a good point, and yes that's very useful indeed.

However money is tight this time of year (isn't it always?!), and I think I could possibly swallow the idea of having to deal with FSCS if necessary. The car value is c. £28,000 and it's for 4 years (or 3 deferred - pending clarification).

jonboyuk · 12 December 2018 at 4:44PM

That's awesome thank you. Actually I think I might go with ALA as MSE are offering 25% off, which takes the total to £209.25 for 4 years on a suggested £20,000 of cover for an A-Rated insurer.

I don't quite understand that last bit. If they say they will replace the vehicle like for like, surely that can't happen with a cap of 20K if I bought a 28K car?

GAP insurance for PCP

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