Gap Insurance Question

[Thrustyjust]

So, I bought a new car yesterday and is in production next week for delivery in 3 ish weeks time. I have it on a pcp for 2 years and if all goes to plan will buy it after that. Question is, the car was £39k and being end of range, we were given big discounts and got it for £30k. So, the question is gap insurance. If I insure the car for the retail cost of £39k and it got stuffed a week in, then in theory , if I only paid £30k for it, I dont need gap insurance ? As there is enough leeway between what I paid to what it retail cost to mean not to pay £400 to the dealer , or am I looking at this all wrong ? I know there is cheaper places to get GAP, but just questioning with the discount if it is something I need or not. Help !!

[Steve (sdh2903)]

There is a gap insurance comparison site give it a try. I took it out with ALA for 80 quid on a 25k lease car. They will cover the gap no questions asked. I didn't want a few k shortfall on me especially as it's not my car.

It's one of those things. If you end up using it, it will be a godsend. If you don t prang the car you will think it's a waste of money.

Don't buy it through the dealer tho.

[Steve (sdh2903)]

http://www.quotezone.co.uk/gap-insurance.htm?adkey=google-gap-gap insurance compare&gclid=CPuXsufGttQCFekW0wodN2MGJw

Get a quote then ring ALA who will then beat it.

[Thrustyjust]

Thanks Steve, just filled it in and await the quotes. I have a few weeks to sort it , so rather deal with it now than nearer the time.

[Steve (sdh2903)]

Mores the point what car is it?

[Thrustyjust]

Family wagon.............. an XC60 R design D4 Auto . In some funky blue that cost a grand extra too goodness me........................ Its only money, but with the new XC due out soon, our local dealer , as we are preferential customers ( keep going back there with the current XC on a low loader when it breaks !) , bought a load of builds slots with specced cars and Volvo gave big discounts to clear the cars out. It would be 14k more expensive to wait for the new version............. So, dont get too excited . Means I dont have to worry about the £1500 in garage costs for this car for the next 3 years , like the old one has cost in the last year.

[Andy_R]

Not sure if this helps but I recently got a Range Rover Sport (2017) and the dealer included the Gap Insurance (along with a few other juicy extras) when I decided to "think about" whether I wanted the car or not!

[Thrustyjust]

13 minutes ago, Andy_R said:

Not sure if this helps but I recently got a Range Rover Sport (2017) and the dealer included the Gap Insurance (along with a few other juicy extras) when I decided to "think about" whether I wanted the car or not!

I tried to push it for a tank of fuel and he said sorry, we have taken these slots to sell and we genuinely make just £800 on the sale, so I am happy with the price I got the car for , but I dont think I could get any more out of them.

[Thrustyjust]

ALA quote has come through at £154 for 20k max claim , so not too bad 

[andy665]

I have worked in and around motor industry finance and insurance products for 20+ years so hopefully can give a bit of insight

Most GAP policies are RTI (Return to Invoice).  At any point during the term of the policy if the car is declared a total loss then the policy will cover the difference between any insurance policy and the invoice price of the car.

Working example: You buy a car for £30k, at 2 years old it is declared a total loss and the insurer pays out market value - lets say £15k. Now £15k may or may not get you another car of the sme age and spec as the one you have just lost.  With RTI GAP the policy will pay out a further £15k giving you the £30k back that you paid for the car two years previously, putting you in a much better position

For new / nearly new cars GAP on an RTI basis is well worth having but not at main dealer prices, ALA are a very good provider and I have had dealings with them in the past

 

 

[Thrustyjust]

Thanks for the insight Andy. the policy will cover me for the 2 years of PCP and will pay back up to £20k on the vehicle. So not too bad to be honest. Dealer was £400 , which I choked on although he said their GAP paid my insurance excess up to £250 if any claim was made.

[Thrustyjust]

Well new car in the drive today. Told the dealers, if they washed it or drilled the plates on, they wouldnt be selling it to me . So, I picked up a dirty car and spent the day cleaning, claying and waxing it. Ordered some Gtechniq sealant which didnt appear, so will use wax for the next couple of months now. In relation to GAP, the dealer said it is back to invoice cost, so went to ALA and for 2 years cover for PCP was £152 , for 3 years was £155 ! . Plan is to keep the car after the 2 years so paid for that. Happy days and £250 less than the dealer. 

[John K]

Really, really nice colour.

Tidy looking car and I think Volvo interiors are ace.

[Thrustyjust]

Thanks John. Its bl**** ace . Only done about 40 miles today, as been cleaning it. Interior is a great place to sit. Love the voice activation system for the sat nav, phone etc. not fiddling with buttons. A lot of advancement over our 2010 XC, I just sold. Doesnt sound like a diesel either inside, as so well muted and with an 8 speed box, only the rev counter gives it away , its changing gear. Has the new 190 bhp engine for the new XC in it , as the old was 181bhp and still early run in days but pulls really well for a 4 pot. Not sure if I want to drive the Westie or Volvo tomorrow now !!