Just done a PCP, Get GAP?

[kinger8938]

Hey guys. Please go gentle, it's new to me

The first I heard of GAP insurance was the morning I was due to pick my car up when speaking to a pal who just bought a new car for himself and took out a policy.

Ford did go through it with me but I didn't expect their price to be too compelling. £375 I think they wanted to cover it for 3 years. Seemed very high but again I'm barely sure what it is, though I think it's worth considering (not their policy, just GAP in general)

Just found a company called ALA? and their quote for 3 years if I got the info correct plus a 10% off code comes to £165 or a bit more if I pay monthly.

So what is the consensus amongst the car community? It sounds like a no brainer thing to have especially when on something like a PCP agreement. Educate me if you can, will take your advice

 

[Meaker]

Can you afford to clock the 3k shortfall if some idiot hits you, your deposit would count towards it? Dealership is usually expensive but as you have found a third party is reasonable.

When my wife came off the road during the beast last year it meant she could just pick up new replacement as soon as the money cleared.

 

[kinger8938]

Can you afford to clock the 3k shortfall if some idiot hits you, your deposit would count towards it? Dealership is usually expensive but as you have found a third party is reasonable.

When my wife came off the road during the beast last year it meant she could just pick up new replacement as soon as the money cleared.

Wow sorry to hear that but glad it was ok, sounds worth looking at then. I see 2 types, return to Invoice, and another about vehicle replacement? I guess that's the one you had to then receive a replacement?

 

[iamdjdz]

Yeah GAP insurance makes sense on a new car on PCP if you don't want to lose money getting a replacement if the worst happens. Also consider RTI GAP insurance.

 

[kinger8938]

Yeah GAP insurance makes sense on a new car on PCP if you don't want to lose money getting a replacement if the worst happens. Also consider RTI GAP insurance.

The car I purchased was used mind, but I imagine it's still worth it? I think RTI is all I would need as that is the finance covered then if the worst was to happen.

 

[iamdjdz]

The car I purchased was used mind, but I imagine it's still worth it? I think RTI is all I would need as that is the finance covered then if the worst was to happen.

It depends on what the difference in market value and the price you paid are. Also what you'd be willing to lose on the car if it was declared a write off by insurance. Definitely worth a couple of hundred for peace of mind if you know you'd get the same price you bought it for if insurance valued it much less.

 

[McPhee]

Return to Invoice Cover is the appropriate product for PCP. It returns you to the position you were in before purchasing the car.

Vehicle Replacement Cover is for people paying cash, or using an unsecured loan.

For the cost of these policies, they're well worth having. But it's also worth checking your regular insurance, as some of the better insurers provide RTI as standard for the first year or two of ownership.

 

[paradigm]

Return to Invoice Cover is the appropriate product for PCP. It returns you to the position you were in before purchasing the car.

Vehicle Replacement Cover is for people paying cash, or using an unsecured loan.

For the cost of these policies, they're well worth having. But it's also worth checking your regular insurance, as some of the better insurers provide RTI as standard for the first year or two of ownership.

It’s not that cut and dry, if you are certain want to be in the same (new) car after a total loss then vehicle replacement is a better proposition. If I’d have incurred a total loss between months 4-12 of owning my car, return to invoice wouldn’t have got me into a new one as the list price had gone up.

 

[atpbx]

Just use AXA, you will get gap insurance for like £90.

Theres also the argument that if you need GAP insurance you cant really afford the car, as your deposit must be absolutely minimal.

 

[Meaker]

Can you afford to clock the 3k shortfall if some idiot hits you, your deposit would count towards it? Dealership is usually expensive but as you have found a third party is reasonable.

When my wife came off the road during the beast last year it meant she could just pick up new replacement as soon as the money cleared.

It was replacement but because it was a customised car with a couple of options they could not replace it in a reasonable time period she was made whole invoice wise.

She still went back to the same dealer and got the same model because she loves it (up! 1.0 tsi) just instead of the beats she got a high up. because she could get it quickly and they had a 2k discount on it at the time meaning that covered the insurance and misc charges being back on the road.

We just put some Michelin all season tyres on to be sure this winter as she drives some nasty country back roads.

 

[kinger8938]

Just use AXA, you will get gap insurance for like £90.

Theres also the argument that if you need GAP insurance you cant really afford the car, as your deposit must be absolutely minimal.

Hadn't checked AXA, will do.

Deposit wasn't huge, but got to start somewhere aye

It's probably worth it like others have said just for piece of mind. I've never had an accident or any sort of knock but you never know I guess

 

[Gilbert89]

Theres also the argument that if you need GAP insurance you cant really afford the car, as your deposit must be absolutely minimal.

 

[Meaker]

Just use AXA, you will get gap insurance for like £90.

Theres also the argument that if you need GAP insurance you cant really afford the car, as your deposit must be absolutely minimal.

So when I got a new job and I needed my first car and I budgeted exactly what I was able to afford and had everything covered:

Warranty
Servicing
Insurance
GAP insurance

So that no matter what happened I had transport to work and was not left short, this was a bad thing?

 

[VaderDSL]

So when I got a new job and I needed my first car and I budgeted exactly what I was able to afford and had everything covered:

Warranty
Servicing
Insurance
GAP insurance

So that no matter what happened I had transport to work and was not left short, this was a bad thing?

Nope, it's what I did. Had a budget £x amount over x years with GAP to cover the basic timeframe I was looking to own the car, 5 years in this case. After I finished paying the loan I kept saving half away per month to cover servicing, wear and tear items and to eventually fund a deposit on a new car.

 

[kinger8938]

I can't find Axa offering it.

Is there a go to supplier? I think I'd better get it.

Mine was bought through a dealer but the PCP is with my own Lloyds current account. Much better rate for me at the time, I imagine that's fine?

 

[paradigm]

I can't find Axa offering it.

Is there a go to supplier? I think I'd better get it.

Mine was bought through a dealer but the PCP is with my own Lloyds current account. Much better rate for me at the time, I imagine that's fine?

It was probably an autocorrect from ALA. ALA is the typical recommendation on here, I’m with ALA on a vehicle replacement plus policy.

 

[Raymond Lin]

I put GAP on my 5 year old car, but it wasn't expensive, it was less than £100 for 3 years.

 

[kinger8938]

It was probably an autocorrect from ALA. ALA is the typical recommendation on here, I’m with ALA on a vehicle replacement plus policy.

Appreciate that, thanks. They are who I quoted with first

 

[Hyburnate]

Just use AXA, you will get gap insurance for like £90.

Theres also the argument that if you need GAP insurance you cant really afford the car, as your deposit must be absolutely minimal.

Thats a stupid comment.

Cars depreciate, inflation increases prices. Replacement vehicle cover will pay the shortfall between what the car was worth when written off and a brand new one 3 years later.


That in itself doesn't change irregardless. I would recommend anyone that purchases a new car, through whatever means of payment to get GAP. This isn't a several thousand pound insurance policy, this will usually be £60 a year.

 

[peige]

imho its worth it but not the dealer offered one. I went with ALA the first time but Chris Knott did a decent deal this time twinned in with my insurance.