Gap Insurance

[nasa959B]

Hi guys, going to get GAP insurance and i notice on the handover check list that it mention GAP insurance.
And it is saying, delay for 12 months.
So the vehicle is New, delivery mileage.
I am insuring with Comfort Insurance, had a really good quote. On the phone all day sorting this lot my head is fried.
So why delay for 12 months?

 

[Erbster]

I was looking at getting gap insurance too. Ala look pretty good. Thinking of 3 or 5 years; not sure why one would delay?


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[jackelliemolly]

Depending on your insurance company but many do like for like replacement in first 12 months so you dont need gap cover. I am with LV and covered but will take gap out but defer start when a claim in 2nd year will be based on the "market value". Otherwise known as nothing like enough to pay off pcp let alone replace like for like. Which is why i am going to have replacement vehicle gap. Re my other post DO check your gap provider is currently covered by financial conduct Authority if they fail. I've found one major supplier that said it was but it expired dec 2016. Fca have checked and reported them to the insurance industry ombudsman. Easy to check if they are covered. Last thing you want is your safety

 

[jackelliemolly]

.....net with holes in it. Having relooked at the provider they have now updated their web and made it clear they are in fact a subsid of a big German insurer and relocated after xmas to germany. I couldnt find the equivalent compensation scheme in germany but even if its on a par or better than the Fca scheme the idea of claiming if they failed (if i had to) to a German quango puts me off using them. And GAP providers have failed in the past.

 

[Lewis]

I'd recommend ALA. very clear cover options and regulated by the FCA. 10% discount code available too, you'll find it with a very basic google search.

 

[Strong]

OP - just to clarify, the reason for recommending delaying for a year is that many policies (including those brokered by Comfort in my recent experience) contain "new for old" cover. This would mean that if you took out Gap insurance from VW you'd be double insured. Ergo: check your policy with Aviva first and if it has new for old don't take out the Gap.

 

[nasa959B]

OP - just to clarify, the reason for recommending delaying for a year is that many policies (including those brokered by Comfort in my recent experience) contain "new for old" cover. This would mean that if you took out Gap insurance from VW you'd be double insured. Ergo: check your policy with Aviva first and if it has new for old don't take out the Gap.

Ok, I get that. I went with Comfort Insurance.
At a cost of £247.00 which I would say pretty good.
That is fully Comp and cover my wife and me.
What they said was they cover new for old for 3 years or 15000 miles.
The repair cost for this to happen would have to be 70% of the value of the vehicle or more. Is there any one that really under stands this and would it be worth doing what the GAP Insurance companies are advising to run GAP along side normal fully comp insurance. Two companies have said this.

 

[Strong]

No point whatsoever in my opinion.

Gap insurance kicks in when the vehicle is written off, which is a decision that the insurer alone makes when they determine that it's beyond econical repair.

1: In your case, it sounds like Comfort are telling you that Aviva determines that 'beyond economical repair' is a cost of 70% of the vehicle value. So when the repair quote is above that, they will write the vehicle off which means they will take it away from you and by the terms of their policy, if it's within the first 3 years or 15,000 miles, they'll buy you a brand new vehicle to exactly the same specification.

2: If they don't write it off, they will simply pay for it to be repaired by approved repairers to their and your satisfaction.

In neither case would it warrant a second policy to be maintained by you I wouldn't have thought ...

 

[Paul S]

Do bear in mind that the new vehicle replacement clause in 99.9% of motor insurance policies (I actually think it's probably 100% but I not read every policy available in the UK) is conditional on the Policyholder being the first registered keeper. So buying anythjng pre-registered (it's irrelevant if it still has zero miles on it and the stealer charges you full list for it due to "rarity") automatically nullifies the benefit of that clause. In which case GAP is worth it from the outset of purchase.

 

[aled james]

Click the ALA link on piston heads and you get a 10% discount on GAP.

 

[RoB5urf]

I've decided I want Gap Insurance but am having hard time deciding on the amount and duration of the cover. On the ALA site, if I select Motor Home, Invoice Price of £45000 and 5 year cover it suggests £40000 as the level of cover.

I don't want to under insure, but I would hope my Beach's market value would be a lot more than £5000 in 5-years time. Any idea what a realistic market value would be in 5-years?

I asked Admiral whether they could tell me how market value was calculated but the response was unsurprisingly vague.