Gap Insurance & Admiral

[Maffoo]

When I picked up my ZS yesterday I bought GAP insurance from the dealer. He deferred it to start in 2011 instead of 2010 just incase the insurer I decide to go with includes old for new cover...

Do you know if Admiral do this? I had a flick through their booklet but couldn't find the exact wording for old for new...

Any advice is appreciated :)

[Jcoventry]

either way gap is a waste of time/money you'll never use it, just another thing for the dealers to make money off. same goes for tyre insurance/cover which i was also tricked into buying when i bought my car from ford main dealer

[evilfish5000]

If you read the policy documents carefully it will state if the car is less than a year old and written off the insurance company at THERE discretion may give you a new same spec car.

Key word here is THERE. They are not obligiged to give you a new car in replacement. In saying that i had gap for a mazda 2 and it didnt pay out even though i was only offered a settlement by the insurers because had the above clause stated.

[stevie j]

either way gap is a waste of time/money you'll never use it, just another thing for the dealers to make money off. same goes for tyre insurance/cover which i was also tricked into buying when i bought my car from ford main dealer

Couldn't agree more just a rip off the same as diamond glaze on the body work

[coysht]

Couldn't agree more just a rip off the same as diamond glaze on the body work

The theory is sound enough, especially if you bought with scrappage.

Say the car cost £15,000 new. With scrappage you pay £13,000.

2 years down the line the car is worth maybe £8,000 (for the sake of arguments).

Insurance company pays out £8,000 in a total loss situation.

Gap insurance would then pay out another £7,000 to the original value of the car, so that in theory you could buy a brand new replacement.

Considering its only £200 - £300 for a few years cover I'd say thats pretty good as far as insurance and extended cover deals go.

[Dave-2912]

The theory is sound enough, especially if you bought with scrappage.

Say the car cost £15,000 new. With scrappage you pay £13,000.

2 years down the line the car is worth maybe £8,000 (for the sake of arguments).

Insurance company pays out £8,000 in a total loss situation.

Gap insurance would then pay out another £7,000 to the original value of the car, so that in theory you could buy a brand new replacement.

Considering its only £200 - £300 for a few years cover I'd say thats pretty good as far as insurance and extended cover deals go.

Sorry, but I dont think thats quite right...

GAP insurance doesn't make up the insurers payout to the total amount you paid for the car.

(E.g. Using your example: You say you paid £13k, after 2 years the insurance would pay out around 8k (current value) and the GAP would make it back up to the 13k).

GAP insurance will actually make up the difference between an insurers payout and the amount you have left to pay on finance/loan.

(E.g. You pay 13k new. After 2 years say you have 9k left to pay but the insurance only pay out 8k as that is the market value. The GAP insurance would then pay out 1k to clear your outstanding finance.)

[DanGull]

Nope - GAP insurance makes up the gap between insurance payout and new car. You can take it out on cars purchased outright.

[Dave-2912]

Nope - GAP insurance makes up the gap between insurance payout and new car. You can take it out on cars purchased outright.

Well we must be thinking about different types of GAP insurance.

Have a quick look at this page:

http://www.gapinsurancecoverage.co.uk/gap-car-insurance/gap-car-insurance-explained/

The important section is this:

"If you start with a loan of £18,000 and within a short period of time something occurs you may only get £7,000 from the insurance company. You may have gotten the loan amount down to £12,000 in that time period. So this means that you must now come up with another £5,000 to pay off this car loan. If you don’t have it, will you be able to borrow money to pay off this loan or will you be left wondering how to pay it."

"You can find Gap Motor Insurance in many forms. There is Finance Gap Insurance, Contract Hire Gap Insurance, Commercial Van & Truck Gap Insurance, Fleet Gap Insurance, Motorcycle Gap Insurance and Motor home Gap Insurance. They will all bridge the gap between what has been paid from the insurance company and the remainder of the auto loan. We offer a variety of policies designed to suit your needs. We also offer a range of other motor related insurance products which you can brows by visiting our products section."

[DanGull]

Hmmmm - ok. You're right, there are obviously different types of GAP.

Ford's own policy works in the way I outlined above.

Ford GAP

[Dave-2912]

To answer the original question, I believe that Admiral (and their related companies like Elephant.co.uk) do NOT do old for new in the first year. (They didnt when I looked into it a couple of years ago anyway.) That being the case, you should ammend your GAP insurance as it would currently be useless. Give Admiral a call to make sure though.

[Mark M.K]

I don't agree with the comment of GAP being a waste of money. Because if your car was to be written off due to having a car crash, you could be left with a few grand outstanding and no way of paying it. GAP would cover this for you just incase you ever needed it.

As for the question in the topic, be best to phone them up and ask what they do.

[Michael P]

I think if we were to ask Sussex about this, he'd agree it was money well spent!!!

I'm pretty sure DanGull had it too ???

[DanGull]

I had it on the Ka Mike - but the Ka was 4 years and 1 month old when it was written off, and I had 4 year GAP.

[Michael P]

Oh, well thats sh... not fine and dandy. I'm slowly learnng!!

[Jason Tierney]

Admiral,Bell,diamond and elphant dont do new for old or car replacement- I asked them about it when i was sorting my insurance out the other day(17days to go :D) They said they will just give the market value of the car They did say they have there own GAP insurance scheme. But Im sure that would be a few hundered extra also.

Everyone saying its too expensive from the dealers-and your right. So, why not have a flick on google. You can get 3/4 year cover for about £90 Its all the same thing.

I know il be doing it, Its a just in case thing. If you say its a waste of money then by rights so is fully comp insurance- if you dont crash you lose and the insurance win.

[Mark M.K]

If you push your dealer (like i did) you can easily get GAP at a reduced price or free of charge. 3 year GAP for me was £99 rather than £300. People who say GAP is a rip off need to look into the real world. £99 is better than having £3,000+ to pay on the finance.

[roversok]

I have just read the Ford policy above invoice value, are they not leaving them self's open to exploitation by fraudulent claims ie you buy a car new £14K, 2 years down the line its banged about a bit worth £7k have it disappear into the night claim of insurance get a £7k payout and £7k from GAP you now have a 7k profit dishonest and a risk but!

( I would not do it or condone it just high lighting a possible flow on GAPS behalf)

[coysht]

I have just read the Ford policy above invoice value, are they not leaving them self's open to exploitation by fraudulent claims ie you buy a car new £14K, 2 years down the line its banged about a bit worth £7k have it disappear into the night claim of insurance get a £7k payout and £7k from GAP you now have a 7k profit dishonest and a risk but!

( I would not do it or condone it just high lighting a possible flow on GAPS behalf)

Yes, but thats the same with all insurance - if you know how to play the system and are willing to brake the law, you can make yourself alot of money.

Insurance companies are reasonably wise to fraud and try their hardest not to pay out at the best of times anyway, so its a risk they are willing to take and one that we see as increases in our premiums.

[Maffoo]

DanGull is right - Ford's GAP was explained to me as...

I paid £14,000 for my car. If, 2 years down the line it is written off, the insurance company will value it at closer to £9,000. Ford GAP will give me a cheque for £5,000 to buy a new car with.

And thanks for the clarification on Admiral :)

[Rogue_Shadow]

ADMIRAL AND GAP

Felt the need to make this bold because I have the answer. B)

I Have a gap policy and my insurrance policy with Admiral.

When I was offered the gap policy on the day of picking up my car, the dealer let me use his phone to call admiral.

They DO provide you with a same spec car if it is written of during the first year, after that the gap policy kicks in for another 2 years.

Admiral,Bell,diamond and elphant dont do new for old or car replacement- I asked them about it when i was sorting my insurance out the other day(17days to go :D)

I would seriously check again mate, I called up about 4 weeks ago while at Fords.

They put me on hold for awhile, but came back with a message from his supervisor to say that I am covered for year 1. wierd

[Jason Tierney]

IT was only last week I was on phone to them but Il check again, thanks.

Might just be like the rest of insurance, random number generated.

Id make sure to get that in writing though before.

[Rogue_Shadow]

Id make sure to get that in writing though before.

That's a good point

If push comes to shove, The phone call was on loud speaker with my Dad, Myself and Dealer present.

Either way, GAP is a good idea :)

[Jason Tierney]

I wouldnt trust them at al, "verbal" contract or not.

If they do say the same when I ring them up, Il ask for it in writing.

[Rogue_Shadow]

I wouldnt trust them at al, "verbal" contract or not.

If they do say the same when I ring them up, Il ask for it in writing.

Without sounding lazy (or like I am talking Bull)

Would you mind posting back what you find.

I'm gonna have a massive rant at them if they come back to you and say its not covered

[Jason Tierney]

No thats fine, I would of done anyway.

They might cover you for it(your area might have less write offs than mine, so it might make sense for them to replace rather than pay market value or something, insurance is a strange business) but might not cover me or my area.