Replacemant Gap Info Needed

Independently Rated 5-Star Invoice & Replacement GAP insurance at prices up to 85% LESS than from a Motor Dealer.
Forum members call 01943 850999 for 10% discount!

Moderators: babybmwadmin, Producethis, marco_polo, Rich196, Lambster, GapInsurance.co.uk, Tim@GAP

Post Reply
MarketSqHero
Junior Member
Junior Member
Posts: 28
Joined: Mon Apr 01, 2019 11:06 am

Replacemant Gap Info Needed

Post by MarketSqHero » Thu May 16, 2019 10:17 am

Hi;

Just generated a quote online, would be looking for Replacement Gap, but the claim limit is set at what I paid (as that was what was asked for in the quote field) not what it would cost to replace.

Also, as my insurance cover is "New for Old" in the 1st 12 months, I take it I wouldn't need Gap to kick in until 12 months time and then for 3 years, rather than 4.

Any advice?

User avatar
GapInsurance.co.uk
Knowledgeable Member
Knowledgeable Member
Posts: 190
Joined: Fri Oct 03, 2014 10:50 am
Location: Holmfirth, UK
Contact:

Re: Replacemant Gap Info Needed

Post by GapInsurance.co.uk » Thu May 16, 2019 11:04 am

Hello - please see my answers below.
MarketSqHero wrote:
Thu May 16, 2019 10:17 am
Just generated a quote online, would be looking for Replacement Gap, but the claim limit is set at what I paid (as that was what was asked for in the quote field) not what it would cost to replace.
The claim limit can't exceed the amount declared as the original invoice price paid for the vehicle *after* discount and applicable exclusions, but the claim limit is also the most that the policy would be prepared to pay out *on top* of what you receive from your motor insurance towards either the original invoice price paid (Invoice GAP) or the cost of replacing it at the time of claim with a brand new equivalent (Replacement GAP).

Except in very limited cases, a claim limit of up to the original invoice price paid, on top of the motor insurance payout, would normally be more than ample.
MarketSqHero wrote:
Thu May 16, 2019 10:17 am
...as my insurance cover is "New for Old" in the 1st 12 months, I take it I wouldn't need Gap to kick in until 12 months time and then for 3 years, rather than 4.

Any advice?
In theory you're right and we used to permit this but, it's no longer considered best practice to forgo GAP insurance within the first year in favour of new-for-old cover from your motor insurer. There's a range of reasons but, particularly if the car is financed, there's an increasing number of claims that we're seeing where the finance company reject the offer of a replacement vehicle from the motor insurer (they don't want to give you the ability to profit from the vehicle having been written off by having a newer and more valuable vehicle to sell at the end of the PCP term) and then the motor insurer treating this like there being no equivalent vehicle available at the time of claim to replace your vehicle with - which in many cases gives them the right to pay out on a market value basis only.

See...

This page on our website: https://www.gapinsurance.co.uk/gap-insu ... -dates.asp

And this blog article here: https://www.gapinsurance.co.uk/blog/201 ... cover-v-2/

...for more info on this very topic.


HTH - 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

Post Reply

Return to “GapInsurance.co.uk”