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Discussion Starter · #1 ·
So ... do people take gap insurance if they buying with 'cash'?

Does the underwriter of the gao insurance matter?
 

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If you're buying the thing outright, then there's probably no need for gap insurance.
The idea is that if you are buying the thing on finance, and it gets written off before you've cleared the finance, the insurance value may not cover the outstanding finance costs so you could end up out of pocket. Gap insurance is intended to make sure you don't end up out of pocket in that kind of situation, by paying the difference (at least) between the outstanding finance cost and the insurance payout.
The underwriter probably matters less than the specifics of what the insurance is covering and any limitations on what, and when, they will pay out.
It's one of those things you pay for but hope you will never have to use!
 

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Go for Gap insurance if you want to ensure that you get back the invoice value of the vehicle in the event it is written off. It's important as insurers typically, will only paythe residual value of the car, which when you drive it off the forecourt isn't what you paid for it!

Some insurers such as Directline will pay the value you paid new if less than 12 months old but most do not.

Honestjohn has some good gap insurance at competitive premiums and they do pay out !

I would go for gap anytime I purchased new - but just check what kind of gap insurance you're buying. Back to invoice puts all the money back to you to choose again without any constraints. Buying gap from car dealerships isn't good value for money.
 

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Missy - I agree with Graham and recommend you purchase it for Back to Invoice Value.

I have it for an A3 and Polo purchased outright, so it's not just for those on Finance deals.

You'll get it much cheaper as a standalone policy not purchased via the dealership as they get a cut of the 'premium'.

Have a look at various including Gap Insurance 1-2-3 where I got my policies.

For new cars where your insurer would replace as new within the first 12 months when the vehicle is written off, Gap Insurers often let you defer the polIcy start for 12 months, recognising that there is no value gap in that period under such circumstances. In other words you pay the premium at today's rates and have the policy start in a year for the selected duration. Also be aware that many gap insurers will not offer the same type of cover if a policy is taken out when a vehicle is more than 12 months old; in such case the cover is usually limited to a % above a recognised market value at the time of write off; you can't cover the gap back to the original invoice value in those circumstances. Hope this helps :D
 

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Discussion Starter · #5 ·
Thank you all ever so mucj. I will be looking into that. The dealership did hint that axa is a good underwiter for their gap policy unlike others online possibly..

Now who is best for insuring the vehicle normally or would Insure it with the same gap people? Seems not possible to get insurance until plates are on? (Registered)..

Do I have to start new no claims bonus for this vehicle as it is extra to my vw camper ? Need to add partner for fully comp use and work purposes. Any recommended car insurers or are they all the same - which to avoid? Usually go for broker with camper for less hassle but those insurance companies are less know than say Tesco etc!
 

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Missy - whilst the terms of Gap policies will vary, all underwriting insurers need to be FSCS registered to ensure they can meet their liabilities or have the FSCS meet for them.

Gap insurance is specialist so mainstream car insurers tend not to offer it. Have a look at the website I mentioned.

As for mainstream car insurance a broker may still be best to give advice and/or search from a panel of insurers. Whilst you could use price comparison sites to search availability, from the nature of your questions, I'd respectfully suggest that the guidance of a broker may help to ensure you get exactly the right cover in place for the Ateca :D
 

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Who is your current insurer? Contact them and ask how much it will be to add the Ateca onto your current policy with any additions that you require. Check other insurers prices and if any can beat what your current insurer offers you, call your insurers back and tell them you can get it cheaper (wherever that may be) and I'll guarantee they will match it.
 

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Discussion Starter · #8 ·
My vw camper insurance is a specialist classic car one.... will research more into best insurers...
 

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I didn't since I decided it was a scam. I've already taken the hit on the value so not bothered about getting it back. It's your utility value function for a gamble. If you want to protect your capital on the car by spending more then fine but if you think you got enough capital to cover eventualities then don't bother. It's a bit like pet insurance, cheaper it you don't take it out since this is how businesses make money. Like the government never insures anything since it has enough dosh to pay out.

It's like Paul said at the top, those who want to make sure they aren't loosing capital because they are on a PCP plan and have a accident may value it more than a person who buys the car outright who is more flush with capital. If you accept that you have taken a hit on the value by buying a car new and anything that might happen to it in the short term and can afford it then you might not bother. I regard it as a fangled insurance to eek more money out of people. Why wasn't it used in the past and why do you need it now. Use of finance now is the answer.
 

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For the premium paid typically £100-£160 you can insure a gap that could be significant - several £1,000's

Even if you have limitless capital, I would suggest the cost of up to a couple of hundred to insure a loss of £1,000s over say 3 years is a reasonable cost. That's a personal decision of course.

What it isn't, is a scam.

Do they pay out? Yes they do - I've been unfortunate enough to need it.

The gap insured paid just shy of £10k (difference between residual and invoice)

I wouldn't want to lose £10k.

The premium ? A single premium of £155 for three years back to invoice.

These are facts, not fiction. It's not just for finance deals as mcderms pointed out in his reply.
 

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I used ALA which offers this forum a members discount... i got back to invoice Plus.... :) i'm not sure it was the best price but was £100 cheaper than my dealer and i'm covered for 4 years instead of the dealers 3!....

http://www.atecaforums.co.uk/viewforum.php?f=6

Regards

Adam
 

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I too took GAP insurance out and believe it's worth the small extra one time outlay. Whether you're on PCP, or fortunate enough to be able to pay outright, it could literally save you thousands.
As pointed out, it's definitely not a scam and well worth the peace of mind to me.
 

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Tell said:
I didn't since I decided it was a scam. I've already taken the hit on the value so not bothered about getting it back. It's your utility value function for a gamble. If you want to protect your capital on the car by spending more then fine but if you think you got enough capital to cover eventualities then don't bother. It's a bit like pet insurance, cheaper it you don't take it out since this is how businesses make money. Like the government never insures anything since it has enough dosh to pay out.

It's like Paul said at the top, those who want to make sure they aren't loosing capital because they are on a PCP plan and have a accident may value it more than a person who buys the car outright who is more flush with capital. If you accept that you have taken a hit on the value by buying a car new and anything that might happen to it in the short term and can afford it then you might not bother. I regard it as a fangled insurance to eek more money out of people. Why wasn't it used in the past and why do you need it now. Use of finance now is the answer.
Tell - your advice is just plain poor, and based on your own - seemingly apparent - capital wealth, which you mention on every possible occasion you can. For one that doesn't impress me ! There will be many people in here who, whether PCP'ing a car (which you seem to regard as the poor man's option) or buying it outright, will still value protection to cover a gap between the cost and a write off value. In neither case is it MANDATORY, so finance funding has nothing directly to do with it; it's about risk mitigation to the 'owner' - which in this case we'll include anyone who has a finance deal. I don't believe either "category" of person values it more than another, it is a value judgement for each individual - yourself too, so you're entitled to your opinion on it.
People who PCP may also just want to keep on changing their cars, unlike you by your own admission (with your healthy capital situation) who will keep them 10 yrs plus, to quote.

And as for someone who says they once worked in the public sector, you're just plain wrong to state that the government (whether central, devolved, or local) doesn't insure anything; if it didn't and someone driving a Council vehicle smacks your Ateca, and causes you a major bodily injury in the process - who are you claiming against? Not the Council, that's for sure, is they can't self insure against that type of risk because, to give but one example, any governmental organisation in the U.K. MUST at least have insurance to satisfy the Roads Traffic Acts requirements - same as you & me and anyone else using the roads! Don't have the insurance = prosecution !

Sometimes I think you should really think before you write, because some people might just believe you, even when you're just plain wrong :shock: :shock:
 

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Rob said:
There is a forum discount here if that helps; http://www.atecaforums.co.uk/viewtopic.php?f=6&t=164

Like most insurance, it offers peace of mind should the worse happen. Yes many people may not need to claim but I like to think that in three years time if my car was written off I would be able to go out and buy a new one again.
Agreed, Rob ! :D
 

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Rob said:
I also have pet insurance and thankful I did thanks to a £1000 vet bill before Christmas!
Thankfully I have life insurance; need to leave my loved ones with a bit more than my currently meagre accumulated capital :p
 

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Grahamn said:
For the premium paid typically £100-£160 you can insure a gap that could be significant - several £1,000's

Even if you have limitless capital, I would suggest the cost of up to a couple of hundred to insure a loss of £1,000s over say 3 years is a reasonable cost. That's a personal decision of course.

What it isn't, is a scam.

Do they pay out? Yes they do - I've been unfortunate enough to need it.

The gap insured paid just shy of £10k (difference between residual and invoice)

I wouldn't want to lose £10k.

The premium ? A single premium of £155 for three years back to invoice.

These are facts, not fiction. It's not just for finance deals as mcderms pointed out in his reply.
Hi graham, do you mind telling me which company you used that paid out? It seems like a minefield choosing a reputable provider.
 

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Sidelight - No problem at all - it was ALA via the honestjohn website in my case. As I say I hoped never to use them , but 18 months later I did and they settled very promptly.

Their address: Unit 3, Park Farm Courtyard, Easthorpe, Malton, YO17 6QX
ALA IB Ltd is authorised and regulated by the Financial Conduct Authority (Reference Number 571109)
 

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At risk of supporting the less popular view I too would never buy GAP as it's a level of cover I don't want. I've purchased both with and without finance but my own view is that I'd replace the vehicle with whatever the budget allowed.

That's just my way and I'm happy to replace say, an Audi with a Skoda if they both share similar niches. I purposely didn't use SEAT in that analogy but you'll get the point.

I can see the benefit of GAP and you could make a similar argument regarding extended warranties - and I am purchasing the maximum extention. Neither is right or wrong but you can still exercise your choice and opinion providing you can also see beyond your own perspective. Perhaps it's a case of sharing views rather than polarising them.
 
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