transman
Member Since: 15 Oct 2005
Location: Up Northwest
Posts: 45
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My Dealer having just sold me a new SE on Mar 1, suggests that I take out GAP Insurance with Land Rover.
This will give me the full Invoice Price of the vehicle in the case of a write off in years 2 and 3. My own Insurer will give me new for old for year 1.
This can also be obtained from a Company advertising GAP Insurance in " WHAT CAR" which is much cheaper.
Has anyone any comments as to whether :-
A. Is it worthwhile doing ?
B. If so , would you go with the Dealer offer, or the cheaper deal?
Just done 300 miles this weekend, no problems, supercar!
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 6th Mar 2006 6:34 pm |
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knightma
Member Since: 16 Feb 2006
Location: Cheltenham
Posts: 13
  
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I was offered this by LR at the time of purchase also. I declined it as I think the chances of a complete write off are very small. Also I don't see it as an insurance. Insurance covers you for your losses, if you write off your 2 year old car you have not lost the value of a new car as it has already suffered 2 years depreciation. I would more liken this to a bet at the bookies. You are betting that your car gets written off and if it does you win the difference between the value of your car at the time of the loss and the value of a new one. If it doesn't you loose. It's not something I would personally be interested in, it all sounds very nice but when you actually consider the odds and premiums this looks like a cash cow for the insurance company if you ask me.
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| 6th Mar 2006 7:24 pm |
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Guy
Member Since: 05 Jul 2005
Location: Sitting Down, Facing Front
Posts: 1264
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My car is on a personal lease and GAP insurance is compulsory. I nealy got caught out as both the lease company and my insurance company included GAP insurance in their packages. I was tied into the lease company GAP scheme so I declined the insurance company offer and got my quote reduced as a result. Read the small print! 
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| 6th Mar 2006 7:28 pm |
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Vectis
Member Since: 25 Jan 2006
Location: Isle of Wight
Posts: 94
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I was led to believe that GAP insurance paid the difference between what your insurance company pays out and what it would cost to replace your car, ie if your car is one year old and the insurance company pays out £30K and a replacement year old car would cost you £32K the GAP insurance would pay out £2K not the difference between £30K and what you paid for the car new.
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| 6th Mar 2006 7:35 pm |
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photothames
Member Since: 28 Jul 2005
Location: Surrey
Posts: 77
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Vectis wrote:I was led to believe that GAP insurance paid the difference between what your insurance company pays out and what it would cost to replace your car, ie if your car is one year old and the insurance company pays out £30K and a replacement year old car would cost you £32K the GAP insurance would pay out £2K not the difference between £30K and what you paid for the car new.
This is true of some GAP insurances others will make up the difference between the value you get from the insurance company and the invoice value at the time you purchased the car. Andy - 2006 HSE TDV6
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| 6th Mar 2006 8:53 pm |
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silverfoxrallying
Member Since: 02 Mar 2006
Location: Newton Stewart
Posts: 12
 
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Was also offered GAP from my dealer via LR, but was advised to go to NFU for my car insurance they give old for new on renawall on second year, also cover off road as well ,as part of policy.
Found them very competitive on price. 
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| 6th Mar 2006 11:40 pm |
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d3matt
Member Since: 03 Aug 2005
Location: South Oxfordshire
Posts: 1485
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If anyone is looking for GAP insurance, try www.pcfgap.co.uk
The prices seem much cheaper than other online insurers.
They also do 'return to invoice' and 'vehicle replacement' insurance. Matt
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| 12th May 2006 11:37 am |
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KL
Member Since: 16 Jun 2005
Location: Gilling, nr York
Posts: 713
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NFU do a "new for old" up to 2 years old.
Better than any gap insurance, if they are anwhere near competitive on the insurance side for you (weren't for me  but mine's still less than a year old anyway). Discovery 3 tdv6 7 seat Buckingham Blue
Had it since new - sold Jun 17 after 12 years and 214,000 miles
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| 12th May 2006 11:48 am |
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d3matt
Member Since: 03 Aug 2005
Location: South Oxfordshire
Posts: 1485
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I have insured the D3 with the NFU, but they were pretty expensive. However, on recommendations from users on this site, I stuck with them as you get the new for old and off-road cover (something I really wanted).
I've previously insured my vans with the NFU, so I kept the same commerical policy for the D3.
I've just insured my wife's new Mini Convertible (with Direct Dial via www.confused.com) and will be buying RTI or NVI insurance from www.pcfgap.co.uk for this. Matt
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| 12th May 2006 11:54 am |
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Tiger
Member Since: 13 Mar 2006
Location: Wales
Posts: 488
 
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Gap insurance is used to protect vehicles that are on bought using finance.
If you bought a car on finace with a lowish deposit (20% for example) the value of the outstanding finance is likely to be more than the worth of the vehicle as soon as you drive it away. You have negative equity.
£35,000 purchase price
£7,000 deposit
£28,000 on finance + £4000 interest
In the event of an accident the insurance company may write your car off and offer you a sum for it say after 6 months they offer you £25,000. Now if the car is written off the finace company will require that the outstanding balance is settled. As you've only been paying off the loan for 6 months you have mainly been paying off the interest and not the captial so the settlement figure may still be close to £28,000 say £27,500 for example.
This means that there is a difference between the value of the payout and the settlement so not only have you lost your P&J and you owe the finance company. So you have you car wriiten off and your £3k out of pocket.
Gap insurance insures the difference between a payout and a settlement.
However some offer back to new cost and different stuff.
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| 12th May 2006 2:08 pm |
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d3matt
Member Since: 03 Aug 2005
Location: South Oxfordshire
Posts: 1485
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Well put.
That is where you're got to get the correct GAP insurance.
On the pcfgap website, there is an explaination of all three types of GAP insurance - finance GAP, Return to Invoice insurance and Vehicle Replacement Insurance. All are reasonable and a fraction of what the main dealers or the banks are offering! Matt
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| 12th May 2006 2:52 pm |
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Tiger
Member Since: 13 Mar 2006
Location: Wales
Posts: 488
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True, Finance GAP is the main one.
If you had the the RTI gap surely you'd just drive your car into a canal 3 years later and get a new car? Wonder how they work that one out
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| 12th May 2006 3:21 pm |
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d3matt
Member Since: 03 Aug 2005
Location: South Oxfordshire
Posts: 1485
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Good point. Worth considering! Matt
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| 12th May 2006 3:33 pm |
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