We get asked lots of questions regarding Gap Insurance. It is clear that the subject can be a little confusing, and that consumers are seeking plenty of information on the subject.
Well we never shy away from any question, what is the worst that can happen? We do not know the answer!
Gap Insurance 101
What value should I put in for the vehicle price to get an online quote? Well this depends on the type of cover you are looking for. Finance Gap Insurance, Return to Invoice and Vehicle Replacement Insurance all require you to enter the actual price you paid for the goods. This figure is after any discount has been taken off, and before any interest is added from your finance agreement.
So if the vehicle was £14,000, the manufacturer gave you a £2,000 discount, and the dealer gave you £3,000 for your part exchange, what price should you put in for your quote?
The answer is £12,000!
This is the £14,000 less the £2,000 that was allowed for a discount. The part exchange value of £3,000 forms part of your purchase price.
For Contract Hire Gap Insurance, the P11d value fo the vehicle should be used to generate your quote. This is because you never get a sales invoice for the value of the vehicle, and this is the closest value you can get.
When you buy your new vehicle from a motor dealer, often you will buy accessories from the dealer. They can be relatively inexpensive, such as carpet mats and mudflaps. However, you can buy items such as Paint Protection and Service Plans. Often these types of items are expensive, and not always covered by Gap Insurance. It is usual to have £1500 of dealer fitted accessories covered by your Gap Insurance policy, as long as the items are on the sales invoice of the policy.
Some Gap Insurance policies will allow you cover if you have cover from your own motor insurance for travel abroad. So if you have a motorhome, motorbike or car, and you are looking to travel in it, check your Gap Insurance policy to see if they allow you cover.
Some policies have a limit on the number of days in any one trip they will cover you for, some Gap Insurance policies will allow unlimited travel abroad.
If you have an insurance policy, you want to know that you will have no trouble if you have to claim. A Gap Insurance claim should be quite straightforward, and the length of time it takes could be an indication of the capabilities of the insurance company.
As such a Gap Insurance policy can be settled very quickly, indeed some Gap Insurance policies aim to settle your claim within 14 days of your motor insurance, and put this in the terms and conditions of the policy.
Bottom line, there is not much that can slow it down, other than you and your own insurance company!
Gap Insurance FAQ’s
Hope we have looked at some of the questions you may have asked, keep looking back and we will attack more Gap Insurance questions in the future!