Gap insurance

Honest John Back Room » Motoring discussion
View Threaded
Thu 13 Feb 2003 20:52
Gap insurance - mal
If someones car is damaged or written off in an accident I have always understood that the insurance co. were obliged to return the car to its pre accident condition or in the case of a car that is written off agree a sum of money with the owner to enable him to enter the market and buy a car similar in value and condition to that which was written off.

I know from my own experience that this is not always the case, but only because you are forced to fight tooth and nail to get what you are entitled to.

Now along comes what they call gap insurance. Now correct me if I'm wrong but are we not just simply buying insurance from probably the same insurers to insure against their unwillingness to pay out what we are entitled to.
Reply | Report as offensive | Link
Thu 13 Feb 2003 20:56
Gap insurance - Clear Spot
As I understand it gap insurance guarantees you what you paid for the car, and this could be up to 3 years ago.
Reply | Report as offensive | Link
Thu 13 Feb 2003 21:00
Gap insurance - mal
Then you can buy a brand new car to replace one written off that is 3 years old. If that is the case I stand corrected.

Regards Mal.
Reply | Report as offensive | Link
Thu 13 Feb 2003 21:50
Gap insurance - JamesH
Gap insurance will cover the difference between the value of the car and any finance that is owed on it.

E.g you buy a car for £10,000 on HP but is written off after a couple of years. Say the insurer gives you a cheque for £6,000, the true value of the car, but you have £8,000 finance still owing.

The gap insurance will pay £2,000, so that the finance can be paid off in full. That way you don't have to fork out the £2,000 yourself, or carry on making the monthly repayments on it.


James
Reply | Report as offensive | Link
Thu 13 Feb 2003 21:46
Gap insurance - Dave E
Any decent insurer should offer you full reinstatement cost for a new car upto a year old. After that it is down to the old chestnut of market value and whether you value your car that much. The gap insurance is not a lot really if you think of depreciation rates. Rest assured any insurer will offer you the minimum amount, so the difference in the gap insurance and what an insurer may pay could be quite substantial. I have just been quoted £200 for the next three years on my wifes new car.
Reply | Report as offensive | Link
Thu 13 Feb 2003 23:27
Gap insurance - puntoo
I think that there are two types being offered.

The one that pays out for the full amount of the car within a certain time (seems to be three years) so you can buy a new car and the one that will just pay off any finance owed.

In call cases you should check what its covering BEFORE you sign up for it !!
Reply | Report as offensive | Link
Fri 14 Feb 2003 03:11
Gap insurance - Blue {P}
My gran got gap insurance with her used Focus.

If it is written off anything up to 3 years from now, she will still get £8K regardless of what the car's true value is at the time of the accident.
Blue
Reply | Report as offensive | Link

Exclusive to Honest John users: 12% off ALA GAP Insurance

Reader Offer: 12% off ALA GAP Insurance

We give you the low down on how to save on insurance, little-known tricks and tips, what insurance groups mean and how to use insurance aggregators to beat insurers.

Insurance group finder and how to save on insurance