GAP Insurance

Dohnut · May 16th, 2022, 13:46

I'm PCH'ing over 4 years.

In the event of a total loss am I right in thinking my insurer pays out to Volvo and I'm still responsible for any outstanding finance, making GAP cover advisable?

First time I've PCH'd and it rather unclear when searching the interweb.

Thanks

CocoPops · May 16th, 2022, 14:16

I use ALA for my gap insurance, was much cheaper and better coverage than the Volvo sales offering.

The gap insurance is like so:

You buy a car at £60k, with a £5k deposit.
You drive it home, it's 'worth' £50k on the open market.
You owe £55k to Volvo.

You crash your car, your insurer pays 'market rate' for the car (to you) in a cheque.

You pay off Volvo with the £50k, but you still owe £5k...

Or...

You take gap insurance and the gap insurance covers the 'gap' between market value and either Invoice Value, or "replacement car".

So assuming your invoice was £60k, your normal insurer pays £50k market rate and gap insurance pays you £10k, to get back to invoice.

Or, assuming Volvo have increased their prices, the gap between market value and 'replacement car' has now changed to £15k because a 'like for like' replacement is now £65k with the Volvo price increases.

Does that help?

volvocamper · May 16th, 2022, 16:08

How ironic! Bought GAP ‘Contract Hire and Leasing’ insurance an hour ago for mine. This is the 4th policy I have bought on last 4 cars. I have used Direct GAP on each occasion and rang them today to make sure i bought the correct product. Got a small discount too as a returning customer. Cost for 4 years cover just a tad over £200. Thankfully not needed it so far but dont fancy prospect of paying monthly costs on a car I no longer can use so not silly cost for peace of mind.

Dohnut · May 16th, 2022, 17:47

ALA are leading the way for me at the mo - you can opt to get upto £3k of your initial finance deposit back.

A small nicety in the event of a total loss.

GreenBrick · May 16th, 2022, 17:57

I have never considered GAP insurance, tend to pay cash for my cars, but my brother-in-law had it, and was hit by an uninsured driver, and the GAP insurance meant he wasn't out of pocket.

DAN AT ADRIAN FLUX · May 16th, 2022, 20:10

Hi.
Just to let you know that we offer a 12 month product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP insurance we feel for some customers it can make a cost effective alternative.
Please feel free to take a look if you wish.
https://www.adrianflux.co.uk/extras/total-loss/
Regards,
Dan.

smithsc · May 17th, 2022, 08:44

Quote:

Originally Posted by Dohnut

ALA are leading the way for me at the mo - you can opt to get upto £3k of your initial finance deposit back.

A small nicety in the event of a total loss.

I've used these for our last 3 cars https://gapinsurance.co.uk/ always happy to help, I've never claimed but they are always very friendly.

Familyman 90 · May 17th, 2022, 11:10

So not only do you pay to maintain and service someone elses car, you need to insure yourself against a loss on the finance youve taken out to enable you to not buy someone elses car!

Has the world gone a bit crackers lately?

Fibrous · May 17th, 2022, 11:18

Quote:

Originally Posted by Familyman 90

So not only do you pay to maintain and service someone elses car, you need to insure yourself against a loss on the finance youve taken out to enable you to not buy someone elses car!

Has the world gone a bit crackers lately?

Lately? Its always been crackers !

Dohnut · May 17th, 2022, 21:20

Quote:

Originally Posted by Familyman 90

So not only do you pay to maintain and service someone elses car, you need to insure yourself against a loss on the finance youve taken out to enable you to not buy someone elses car!

Has the world gone a bit crackers lately?

You don’t need to but you’d be crackers not to.

May 16th, 2022, 13:46	#1
Dohnut Senior Member Last Online: Yesterday 11:02 Join Date: Oct 2021 Location: Kent	GAP Insurance I'm PCH'ing over 4 years. In the event of a total loss am I right in thinking my insurer pays out to Volvo and I'm still responsible for any outstanding finance, making GAP cover advisable? First time I've PCH'd and it rather unclear when searching the interweb. Thanks __________________ MY22 XC90 R-Design Pro B5D (Sensus): Pine Grey / Lounge Pack / 360 Camera / Wireless Charger / Retractable Towbar

May 16th, 2022, 14:16	#2
CocoPops VOC Member Last Online: Yesterday 21:59 Join Date: Mar 2019 Location: Reading	I use ALA for my gap insurance, was much cheaper and better coverage than the Volvo sales offering. The gap insurance is like so: You buy a car at £60k, with a £5k deposit. You drive it home, it's 'worth' £50k on the open market. You owe £55k to Volvo. You crash your car, your insurer pays 'market rate' for the car (to you) in a cheque. You pay off Volvo with the £50k, but you still owe £5k... Or... You take gap insurance and the gap insurance covers the 'gap' between market value and either Invoice Value, or "replacement car". So assuming your invoice was £60k, your normal insurer pays £50k market rate and gap insurance pays you £10k, to get back to invoice. Or, assuming Volvo have increased their prices, the gap between market value and 'replacement car' has now changed to £15k because a 'like for like' replacement is now £65k with the Volvo price increases. Does that help? __________________ Finally Here: MY23 XC90 T8 Ultimate Dark, Crystal White, Charcoal Massage Leather, Towbar, Polestar. Past: MY20 XC90 B5D R-Design, Bursting Blue Last edited by CocoPops; May 16th, 2022 at 14:24.

May 16th, 2022, 17:47	#4
Dohnut Senior Member Last Online: Yesterday 11:02 Join Date: Oct 2021 Location: Kent	ALA are leading the way for me at the mo - you can opt to get upto £3k of your initial finance deposit back. A small nicety in the event of a total loss. __________________ MY22 XC90 R-Design Pro B5D (Sensus): Pine Grey / Lounge Pack / 360 Camera / Wireless Charger / Retractable Towbar

May 16th, 2022, 17:57	#5
GreenBrick SilverBrick Lives! Last Online: Apr 5th, 2024 19:06 Join Date: Apr 2015 Location: Poynton, Cheshire	I have never considered GAP insurance, tend to pay cash for my cars, but my brother-in-law had it, and was hit by an uninsured driver, and the GAP insurance meant he wasn't out of pocket. __________________ Jeep ZJ, 960, Past:- Mazda2, Jumbuck, V70 (2002), 945 (1995), Hyundai Coupe, Golf Mk4, Previa, Carina, 2 x Corsa, 4 x Astra, 944 16v (1991), Espace, Escort, Audi 80, Renault 21 Savanna, Polo, Mini Clubman/Pickup, Standard 8, Capri, Maxi.

May 17th, 2022, 11:10	#8
Familyman 90 The Brit Brick Last Online: Aug 13th, 2023 09:39 Join Date: Jul 2021 Location: Warwickshire	So not only do you pay to maintain and service someone elses car, you need to insure yourself against a loss on the finance youve taken out to enable you to not buy someone elses car! Has the world gone a bit crackers lately? __________________ *2005 C70 2.4T Collection convertible. 40,000 mile sunny day toy.*

May 16th, 2022, 16:08	#3
volvocamper Master Member Last Online: Yesterday 20:06 Join Date: May 2010 Location: Norwich	How ironic! Bought GAP ‘Contract Hire and Leasing’ insurance an hour ago for mine. This is the 4th policy I have bought on last 4 cars. I have used Direct GAP on each occasion and rang them today to make sure i bought the correct product. Got a small discount too as a returning customer. Cost for 4 years cover just a tad over £200. Thankfully not needed it so far but dont fancy prospect of paying monthly costs on a car I no longer can use so not silly cost for peace of mind.

May 16th, 2022, 20:10	#6
DAN AT ADRIAN FLUX Trader Last Online: Apr 22nd, 2024 18:44 Join Date: Aug 2012 Location: King's Lynn	Hi. Just to let you know that we offer a 12 month product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP insurance we feel for some customers it can make a cost effective alternative. Please feel free to take a look if you wish. https://www.adrianflux.co.uk/extras/total-loss/ Regards, Dan.

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