Gap Insurance

[brownn]

Hello, first time post here and after some opinions with GAP cover.

Pick up my brand new 15 plate Fiesta Zetec 5dr tomorrow evening and the dealers offered me GAP insurance for £350 (and wont budge on the price). Following advice given to others on here Ive got some quotes with ALA and directgap significantly cheaper.

My question relates to the value of the vehicle/invoice cost that the GAP insurers use to quote on. I've seen that extras like mats and paint protection etc aren't to be included, but on my invoice I have the new vehicle basic price, the cost of the paint colour of the car (frozen white), then all my extras. Would I include the paint colour cost along with the basic vehicle price? And also do I then add VAT onto these costs or do you enter the net cost?

I've only ever had GAP insurance once before on a Fabia and stupidly I let the dealer sort it out so this is all new to me.

Thanks in advance for any advice

Nick

[CookieM]

Gap insurance is used to cover the excess money owed on the finance after what your insurer would pay out (market value) in the event of a write - off.

So really you need think about how much the car is going to deprecate in the length of policy and compare that to how much you owe on the finance.

Hope this helps

[FLIPSKNACKER]

Gap insurance is used to cover the excess money owed on the finance after what your insurer would pay out (market value) in the event of a write - off.

So really you need think about how much the car is going to deprecate in the length of policy and compare that to how much you owe on the finance.

Hope this helps

There are various types of GAP Insurance that act in different ways in the event your vehicle is declared a Total Loss (written off) through accident, fire or theft.

Finance GAP insurance:

Pays the difference between your Motor Insurance policy payout and the amount outstanding on finance at the time of claim.

You'll find only a small selection of companies (aside from Motor Dealers) selling Finance GAP insurance these days as it's generally regarded (with the exception of policies to cover Contract Hire Agreements) as a poor/inferior type of GAP insurance.

Invoice GAP insurance:

Pays the difference between your Motor Insurance payout and the original on-the-road invoice price (after discounts but before part exchange allowance and deposit(s) etc) to buy the vehicle first time around.

These days Invoice GAP insurance is the most popular type of GAP insurance (if not only because most Motor Dealers don't offer any superior policy). In addition most companies now offer a combined Invoice & Finance GAP insurance policy which, in the event of write off, pays the difference between your Motor Insurance payout and the greater of either, the original on-the-road invoice price paid for the vehicle OR the amount outstanding on finance at the time of claim.

Finally, there's also...

Replacement GAP insurance

Pays the difference between your Motor Insurance payout and (in the case of a vehicle bought brand new and you were the first registered keeper) the cost of replacing the vehicle with a brand new version of the same (or nearest equivalent vehicle at the time of claim - even if the replacement vehicle costs more than you bought the vehicle for first time around.

There's also now combined versions of Invoice/Replacement (paying up to the greater of the original purchase price OR replacement price) and even combined Finance/Invoice/Replacement policies (paying up to the greater of either the amount outstanding finance, original purchase price OR replacement price at the time of claim).

In many cases Replacement GAP insurance is also available for used vehicles, whereby it'll pay the difference between your Motor Insurance payout and what it would cost at the time of claim to replace the vehicle with one of the same (or nearest equivalent) Make, Model, Specification, Age and Mileage as your original vehicle was at the time you first bought it.

Hello, first time post here and after some opinions with GAP cover.

Pick up my brand new 15 plate Fiesta Zetec 5dr tomorrow evening and the dealers offered me GAP insurance for £350 (and wont budge on the price). Following advice given to others on here Ive got some quotes with ALA and directgap significantly cheaper.

My question relates to the value of the vehicle/invoice cost that the GAP insurers use to quote on. I've seen that extras like mats and paint protection etc aren't to be included, but on my invoice I have the new vehicle basic price, the cost of the paint colour of the car (frozen white), then all my extras. Would I include the paint colour cost along with the basic vehicle price? And also do I then add VAT onto these costs or do you enter the net cost?

I've only ever had GAP insurance once before on a Fabia and stupidly I let the dealer sort it out so this is all new to me.

Thanks in advance for any advice

Nick

Generally speaking you should enter the on-the-road invoice price you're paying for the vehicle. That's the price AFTER discounts (if any) but BEFORE any part-exchange allowance and/or deposit (assuming it's financed). Inclusive of VAT. (VAT will only not be covered if you're VAT registered and are claiming the VAT element of the vehicle purchase back as part of your VAT return).

Some GAP insurance providers won't cover you for dealer-fitted/suppliied optional extras, some will cover you for them only up to a certain value (often circa £1500), others (better policies) cover the lot within the overall policy claim limit.

[brownn]

Thanks for your replies, that makes things a lot clearer. I was going to go with the Vehicle Replacement Plus from ALA. Its a brand new Fiesta 15 reg and I have used Ford Options PCP.

Collected the car yesterday and very impressed with it so far.

Thanks again

Nick

[CookieM]

What he said ^ lol

[DAN@ADRIAN FLUX]

Hi,

Just to let you know that we offer a product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP Insurance however we feel it can offer a cost effective alternative. If you'd like any further information then please feel free to drop me a line.

Regards,

Dan.