New policy and when to start

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Gizmo555
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New policy and when to start

Post by Gizmo555 » Tue Aug 15, 2017 11:04 pm

Hi

I currently have a policy, from a different supplier, on my current car that has 1 year left to run.
I'm in the process of changing car and can transfer the remaining 1 year on to the new car. When can I then take your policy to give me continuous coverage over a 4 year total term (1 year with existing, 3 years with you)?

Thanks

Mark

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dorsetred
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Re: New policy and when to start

Post by dorsetred » Wed Aug 16, 2017 5:00 am

Hi Mark

We're in exactly the same boat as our 2AT is three years old come end of November, already contacted them by email and they've sent a quote but also added need to take it up within 30 days so we'll reapply in November. What did surprise me was despite having a low mileage mint condition vehicle including being detailed again in May, their quote is advised as current "Glasses Guide" value so will be looking further into that along with checking what BM will be offering re Extended Warranty etc. which we'll also be taking up.

Hope this info helps.

Allan - dorsetred 8)
[/color]Mercedes-AMG GLA 45
Previous - BMW 218d M Sport Active Tourer, BMW 118d, Honda Civic V-Tech Type R GT, Volvo C-30 1.8 R-Design, Honda HRV

GapInsurance.co.uk
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Re: New policy and when to start

Post by GapInsurance.co.uk » Wed Aug 16, 2017 8:33 am

Gizmo555 wrote:
Tue Aug 15, 2017 11:04 pm
Hi

I currently have a policy, from a different supplier, on my current car that has 1 year left to run.
I'm in the process of changing car and can transfer the remaining 1 year on to the new car. When can I then take your policy to give me continuous coverage over a 4 year total term (1 year with existing, 3 years with you)?

Thanks

Mark
We allow you to buy Invoice or Replacement GAP insurance up to 365 days after taking ownership of the vehicle. Therefore in theory, you could take the 1yr cover from the existing supplier on the existing vehicle and then contact us towards the end of that first year. Note though that if you breach 365 days from the date of taking delivery of the vehicle, we won't be able to offer you cover at all. Also note that our GAP insurance policy price increases slightly (depending on various parameters the increase can range from around 3% to around 7%) if you buy more than 180 days after taking delivery of the vehicle.

OR if the new vehicle is brand new and you are the first keeper, you could buy a policy from us sooner, but elect to delay the start date by up to a year from the date it was first registered. This would mean that you avoid the 180-day price increase I refer to above but, still only have cover from us for years 2, 3 and 4.

In terms of the existing cover on your current vehicle, be aware that in some cases the cover transferred forward becomes an inferior level of cover to that which you enjoyed on the original vehicle. Sometimes admin/transfer fees apply too. It's not impossible that cancelling the policy outright and taking a rebate of the unused premium (including taking a hit with any cancellation fee that might apply) and then buying a whole new policy on the new vehicle, might make more financial sense in the long term (e.g. in the event of any subsequent claim).

If you like, you can send me the T's & C's of your existing policy along with a summary of the details of the new vehicle purchase, and I'll look over them for you and get back to you with any issues to watch out for.
dorsetred wrote:
Wed Aug 16, 2017 5:00 am
Hi Mark

We're in exactly the same boat as our 2AT is three years old come end of November, already contacted them by email and they've sent a quote but also added need to take it up within 30 days so we'll reapply in November. What did surprise me was despite having a low mileage mint condition vehicle including being detailed again in May, their quote is advised as current "Glasses Guide" value so will be looking further into that along with checking what BM will be offering re Extended Warranty etc. which we'll also be taking up.

Hope this info helps.

Allan - dorsetred 8)
Allan, I suspect you're referring to another company rather than us (www.gapinsurance.co.uk) - if I understand your post correctly, you've owned your vehicle for more than 365 days already. If that's the case, we currently wouldn't be able to provide you with any form of GAP insurance. Neither do we insist that a policy must be purchased within 30 days nor do we offer a policy that would be based on the current "Glass' Guide" value of the vehicle (unless you bought your vehicle privately within the last 365 days).

What I think you're referring to is an "Agreed Value GAP insurance" product available from one of our competitors which, in the event of write-off will aim to pay the difference between motor insurance payout and what Glass' Guide said your vehicle was worth on the day you purchased the Agreed Value GAP insurance policy. Although it is something we'll be launching soon, we don't have this type of cover within our product portfolio at present.

This type of cover is very different to that of an Invoice GAP insurance policy (which will aim to get you back to the original invoice price you bought your vehicle for) or a Replacement GAP insurance policy (which will aim to get you up to the cost of replacing your vehicle at the time of claim with an equivalent to the vehicle you originally bought) covering a vehicle purchased from a motor dealer within the last 365 days.

I apologise in advance if I've misunderstood your post. Please advise if that is the case and I'll amend my advice accordingly.

Best wishes

David
Invoice, Replacement & Contract Hire GAP Insurance quotes at up to 85% less than your Motor Dealer
T: 01484 490095 E: support@gapinsurance.co.uk W: gapinsurance.co.uk F: facebook.com/gapinsurance

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dorsetred
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Re: New policy and when to start

Post by dorsetred » Wed Aug 16, 2017 8:52 am

Hi David

Many thanks and as you surmised you are completely correct in that the company I approached was not yourselves however needless to add I've a much better understanding following your comprehensive explanation which is greatly appreciated. Obviously now in a quandary as to take up the other option or not bother having bought the car new and almost three years old at this time.

Allan - Dorsetred
[/color]Mercedes-AMG GLA 45
Previous - BMW 218d M Sport Active Tourer, BMW 118d, Honda Civic V-Tech Type R GT, Volvo C-30 1.8 R-Design, Honda HRV

GapInsurance.co.uk
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Location: Otley, UK
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Re: New policy and when to start

Post by GapInsurance.co.uk » Wed Aug 16, 2017 10:38 am

dorsetred wrote:
Wed Aug 16, 2017 8:52 am
Hi David

Many thanks and as you surmised you are completely correct in that the company I approached was not yourselves however needless to add I've a much better understanding following your comprehensive explanation which is greatly appreciated. Obviously now in a quandary as to take up the other option or not bother having bought the car new and almost three years old at this time.

Allan - Dorsetred
You're welcome.

As for your quandry... I suppose the view to take is that whatever your vehicle is worth now (or in November... or whenever you purchase an Agreed Value policy) it *will* (normally at least) continue to drop in value away from that figure therefore *if* the car was subsequently written off you'd expect there to be a gap between what it was worth when you bought the policy and what it is worth (and therefore the amount paid out by your Motor Insurer) at the time of that claim.

The issue of course is that if you bought your car brand new almost 3-years ago, you've already likely incurred considerable depreciation (at least when viewed as a %'age of the original purchase price) and any further depreciation from it's present value is likely to be pretty small by comparison.

In simple terms... if you have an Invoice or Replacement GAP insurance policy in place already and have done since you bought the car, if the car was written off now the payout required of the GAP insurance policy would likely be a substantial figure, compared to if you bought an Agreed Value GAP insurance policy and then went on to have a claim which would see (by comparison) a relatively low payout.

As an alternative, you should be able to buy an Agreed Value GAP insurance policy at any time... if you buy one now, in theory it'll be set to a higher vehicle value than if you wait until November to buy it.

Ultimately, only you can decide whether an Agreed Value GAP insurance policy is worthwhile or whether you'd be comfortable covering any such loss, personally instead. Of course the same logic can be applied to buying any form of GAP insurance, it's just that Agreed Value GAP insurance would normally involve much lower potential payouts than an Invoice or Replacement GAP policy covering the original vehicle purchase.

HTH
Invoice, Replacement & Contract Hire GAP Insurance quotes at up to 85% less than your Motor Dealer
T: 01484 490095 E: support@gapinsurance.co.uk W: gapinsurance.co.uk F: facebook.com/gapinsurance

Gizmo555
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Posts: 229
Joined: Mon Aug 11, 2014 8:03 pm

Re: New policy and when to start

Post by Gizmo555 » Wed Aug 16, 2017 10:53 pm

GapInsurance.co.uk wrote:
Wed Aug 16, 2017 8:33 am
Gizmo555 wrote:
Tue Aug 15, 2017 11:04 pm
Hi

I currently have a policy, from a different supplier, on my current car that has 1 year left to run.
I'm in the process of changing car and can transfer the remaining 1 year on to the new car. When can I then take your policy to give me continuous coverage over a 4 year total term (1 year with existing, 3 years with you)?

Thanks

Mark

We allow you to buy Invoice or Replacement GAP insurance up to 365 days after taking ownership of the vehicle. Therefore in theory, you could take the 1yr cover from the existing supplier on the existing vehicle and then contact us towards the end of that first year. Note though that if you breach 365 days from the date of taking delivery of the vehicle, we won't be able to offer you cover at all. Also note that our GAP insurance policy price increases slightly (depending on various parameters the increase can range from around 3% to around 7%) if you buy more than 180 days after taking delivery of the vehicle.

OR if the new vehicle is brand new and you are the first keeper, you could buy a policy from us sooner, but elect to delay the start date by up to a year from the date it was first registered. This would mean that you avoid the 180-day price increase I refer to above but, still only have cover from us for years 2, 3 and 4.

In terms of the existing cover on your current vehicle, be aware that in some cases the cover transferred forward becomes an inferior level of cover to that which you enjoyed on the original vehicle. Sometimes admin/transfer fees apply too. It's not impossible that cancelling the policy outright and taking a rebate of the unused premium (including taking a hit with any cancellation fee that might apply) and then buying a whole new policy on the new vehicle, might make more financial sense in the long term (e.g. in the event of any subsequent claim).

If you like, you can send me the T's & C's of your existing policy along with a summary of the details of the new vehicle purchase, and I'll look over them for you and get back to you with any issues to watch out for.
dorsetred wrote:
Wed Aug 16, 2017 5:00 am
Hi Mark

We're in exactly the same boat as our 2AT is three years old come end of November, already contacted them by email and they've sent a quote but also added need to take it up within 30 days so we'll reapply in November. What did surprise me was despite having a low mileage mint condition vehicle including being detailed again in May, their quote is advised as current "Glasses Guide" value so will be looking further into that along with checking what BM will be offering re Extended Warranty etc. which we'll also be taking up.

Hope this info helps.

Allan - dorsetred 8)
Allan, I suspect you're referring to another company rather than us (www.gapinsurance.co.uk) - if I understand your post correctly, you've owned your vehicle for more than 365 days already. If that's the case, we currently wouldn't be able to provide you with any form of GAP insurance. Neither do we insist that a policy must be purchased within 30 days nor do we offer a policy that would be based on the current "Glass' Guide" value of the vehicle (unless you bought your vehicle privately within the last 365 days).

What I think you're referring to is an "Agreed Value GAP insurance" product available from one of our competitors which, in the event of write-off will aim to pay the difference between motor insurance payout and what Glass' Guide said your vehicle was worth on the day you purchased the Agreed Value GAP insurance policy. Although it is something we'll be launching soon, we don't have this type of cover within our product portfolio at present.

This type of cover is very different to that of an Invoice GAP insurance policy (which will aim to get you back to the original invoice price you bought your vehicle for) or a Replacement GAP insurance policy (which will aim to get you up to the cost of replacing your vehicle at the time of claim with an equivalent to the vehicle you originally bought) covering a vehicle purchased from a motor dealer within the last 365 days.

I apologise in advance if I've misunderstood your post. Please advise if that is the case and I'll amend my advice accordingly.

Best wishes

David

Thanks David, understood.
I'll take a look at options.

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