GAP Insurance

Addd · 15 April 2018 at 2:38PM

Hello everyone. I'm currently leasing a car and I was wondering if I need GAP insurance? Id never heard of it until recently.
Does it cost as much as your normal car insurance as well?

Thanks. How good is this site by the way. Saved me loads of money

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flashg67 · 15 April 2018 at 5:00PM

You don't have to have it but I suppose it's like any insurance - only any good if you need to claim.

Do some research to understand the different types, and avoid overpaying at a dealer - much cheaper to buy direct from the GAP provider.

I bought it for my last new car and never needed it, but I know someone who had a 3yr old car written off, and used it to get the full purchase price back.(return to invoice GAP). Seem to recall I pad about £140 for 3 years cover.

The most common type covers you for any shortfall in the insurance valuation and what you owe the finance company in the event of a total loss claim, which could be next to nothing, or several £000 depending on the car

Addd · 29 April 2018 at 10:25AM

lostinheaven wrote: »

By "leasing a car" - do you mean that it's a Contract Hire Agreement with no option to purchase the vehicle (e.g. you have to hand it back at the end of the agreement term), or do you mean that it's a PCP (or other form of finance) agreement where you have a contractual option to purchase the vehicle (e.g. once you've made all of the repayments, the car becomes your property)?

The first one. I just make monthly payments and give the car back at the end of the term. Does this make a difference?

Nearlyold · 29 April 2018 at 8:48PM

It makes a difference in the type of Gap policy you need (assuming you want to buy GAP at all). A typical Contract Hire GAP will cover the balance of the remaining Contract Hire payments you may have to make if the car is written off.

tatmaninov · 6 June 2018 at 7:19AM

Lostinheaven, following on from your points, one element of GAP insurance that is not clear to me is the following; I am in the process of purchasing/leasing a vehicle with a 3 year PCP finance arrangement. If I chose not to take out GAP insurance and the vehicle is written off in the first 3 years. Assuming my insurance company give me a replacement vehicle or the cash to buy an equivalent vehicle (same model, year etc.) as the written off vehicle. Can I then hand this vehicle back at the end of the finance? i.e. in your experience/knowledge will the finance company/dealership require you to settle the finance if the original vehicle is written off or will they accept a like for like vehicle?

Silvertabby · 7 June 2018 at 9:26AM

We've had 2 PCP cars and in each case the (same) dealer threw in 3 years GAP as a freebie.

Erbert · 7 June 2018 at 12:10PM

Well I decided to go for GAP ins via MSE link and the discount code saved me £59.
Result!

GAP Insurance

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