GAP Insurance

[Stark]

As the title suggests, which company did you use for GAP Insurance?

I was going to use the same company I used for the wife's mini but after reading the policy exclusions, one of them states this

Vehicles that:
• are not listed in Glass’s Guide;

Now when you look in the glass's guide, the mustang is not listed

gapinsurance123.co.uk was the company and also AutoTrader is another company that has the exclusion in.

I have just phone the 123 company and he is going to check with the underwriters and call me back. I know it's probably just a case of it being a new car and therefore the glass's guide may not be up to date yet but I want to be certain it's all covered.
[MENTION=14319]ianw[/MENTION]hu [MENTION=14112]croyde[/MENTION] [MENTION=8211]stevec[/MENTION] [MENTION=13598]Gibbo205[/MENTION] [MENTION=14447]Centurion07[/MENTION] etc.....

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[Gibbo205]

I did not buy such things, no point, I bought the car outright, so its mine and no intentions on selling it for a long time.

 

[Manders Mustang]

I did not buy such things, no point, I bought the car outright, so its mine and no intentions on selling it for a long time.

I'm doing the same, if i'm not mistaken doesn't GAP insurance cover the car for it's entire value should you crash it or get into a write off, rather than the depreciated value of it (Not sure if i've got this mixed up with something!)

Gibbo, did you get offered 'Tyre insurance' (Idk the name might be wheel cover or something) with yours when you picked it up? Covers i believe 6 tyres and all alloy refurbs over a 2 or 3 yr period?

 

[Gibbo205]

I'm doing the same, if i'm not mistaken doesn't GAP insurance cover the car for it's entire value should you crash it or get into a write off, rather than the depreciated value of it (Not sure if i've got this mixed up with something!)

Gibbo, did you get offered 'Tyre insurance' (Idk the name might be wheel cover or something) with yours when you picked it up? Covers i believe 6 tyres and all alloy refurbs over a 2 or 3 yr period?

You do not need GAP insurance, car insurance should it be written off will pay out enough money for you to buy a replacement, that is way car insurance works. But these will only be getting written off if you have a huge off.

They offered me nothing as they knew I'd be dismantling the car pretty soon into ownership, the dealership are really good and want me to bring the car to them once I have modified it so they can see the modifications and check it over, they are as excited as myself and are keen to offer some of the upgrades themselves.

 

[Cookie]

I'm doing the same, if i'm not mistaken doesn't GAP insurance cover the car for it's entire value should you crash it or get into a write off, rather than the depreciated value of it (Not sure if i've got this mixed up with something!)

You're quite right.

You do not need GAP insurance, car insurance should it be written off will pay out enough money for you to buy a replacement, that is way car insurance works. But these will only be getting written off if you have a huge off.

Not sure I agree with this, as normal insurance companies will only give you the "market value" of the vehicle, not the original purchase value. That's the "gap" that's made up by gap insurance.

for example... You buy the car for £35k (just for illustration) drive it for 10 months and then have an accident that writes it off. Having covered something like 10k miles the car isn't worth £35k anymore it's worth £31.5k at the "current market value". That's what the normal insurance company will give you. i.e. you're £3.5k in the hole!

The Gap Insurance covers the difference between the market value and the original purchase price (i.e. you get the extra £3.5k back) which protects your original investment of £35k.

 

[Centurion07]

I didn't bother in the end.

Originally I was going to have it, then dropped it from the dealer order with the intention of buying it elsewhere, then never got round to it.

If my insurer can show me where they can source a replacement RHD Mustang from for anything less than RRP then......

 

[Stark]

Sorted and you boys might want to check your policies as well so if their is anyone out there that has paid for GAP insurance might already have cover on their insurance :

Ford 7 day free cover includes the following benefit as shown on their policy document:

Replacing Your Car
We will, at your request, replace Your Car with a
new one of the same make, model and specification
if Your Car is:
• stolen and not recovered within 28 days of you
reporting the theft to us; or
• damaged to the extent that the cost of repair is
more than 50% of the price of an identical new
car at the time of loss or damage (based on the
manufacturers last United Kingdom list price).
We will only do this if:
• you have owned Your Car (or it has been hired to
you under a hire-purchase agreement or Personal
Contract Hire agreement) since it was first
registered as new;
• the loss or damage happens before Your Car is
one year old;
• we have your permission or the hire-purchase
company’s permission to replace Your Car; and
• Your Car is in current production and available
in the United Kingdom.

I am then insured with ESURE after the 7 days and on their policy documents it states this:

New car replacement
We will replace your car with a new one if
your car is less than one year old at the
date of damage and you or your partner
are the first and only registered keeper and
if the cost of damage is more than 60% of
the manufacturer's latest UK list price.
Only applies if the replacement car is available in Great Britain or the
Isle of Man and anyone else who has an interest in your car agrees. (Luckily this applies for the RHD Mustang now as it's like buying a BMW etc which is manufactured in Germany )
If a suitable replacement car is not available, we will pay you the
price you paid for your car, its fitted accessories and spare parts
or the manufacturer’s latest list price (including taxes) whichever
is less.

You're quite right.

Not sure I agree with this, as normal insurance companies will only give you the "market value" of the vehicle, not the original purchase value. That's the "gap" that's made up by gap insurance.

for example... You buy the car for £35k (just for illustration) drive it for 10 months and then have an accident that writes it off. Having covered something like 10k miles the car isn't worth £35k anymore it's worth £31.5k at the "current market value". That's what the normal insurance company will give you. i.e. you're £3.5k in the hole!

The Gap Insurance covers the difference between the market value and the original purchase price (i.e. you get the extra £3.5k back) which protects your original investment of £35k.

Exactly this. No matter if you paid cash or financed you still should cover yourself as you could be out of pocket. £35k and say in 6 months time it's £28k then your insurance will only give you £28k but the gap insurance (depending on policy) will payout the £7k difference or pay more if the like for like vehicle costs more at the time e.g. £40k so they will payout £12k instead. ONLY NEEDED if your insurance policy does not have the added replacement cover benefit.

 

[tooley]

You're quite right.



Not sure I agree with this, as normal insurance companies will only give you the "market value" of the vehicle, not the original purchase value. That's the "gap" that's made up by gap insurance.

Quids in then - Market value at the moment is anywhere between £41 - £47k if you believe Autotrader

 

[Centurion07]

Exactly this. No matter if you paid cash or financed you still should cover yourself as you could be out of pocket. £35k and say in 6 months time it's £28k then your insurance will only give you £28k but the gap insurance (depending on policy) will payout the £7k difference or pay more if the like for like vehicle costs more at the time e.g. £40k so they will payout £12k instead. ONLY NEEDED if your insurance policy does not have the added replacement cover benefit.

I doubt there will be any secondhand cars on the market in 6 months time, possibly even up to a year for an insurance company to be able to point to a secondhand value.

 

[Harmy2010]

Exactly this. No matter if you paid cash or financed you still should cover yourself as you could be out of pocket. £35k and say in 6 months time it's £28k then your insurance will only give you £28k but the gap insurance (depending on policy) will payout the £7k difference or pay more if the like for like vehicle costs more at the time e.g. £40k so they will payout £12k instead. ONLY NEEDED if your insurance policy does not have the added replacement cover benefit.

Agreed. I always take out GAP(if my insurance policy does not provide cover). I just don't want to be worrying about a low ball insurance payment if the worst happens.

 

[Manders Mustang]

I doubt there will be any secondhand cars on the market in 6 months time, possibly even up to a year for an insurance company to be able to point to a secondhand value.

In which case it's a "Highly sought after and rare automobile" soooo... 100k seem fair? :shrug:

 

[WaxDaddy]

I ended up getting Return To Invoice gap insurance, I bought the car outright but if it's written off in the first 4 year I get the full value of the car back from my insurance + the gap insurance... silly not to do it really imo

 

[Stark]

I ended up getting Return To Invoice gap insurance, I bought the car outright but if it's written off in the first 4 year I get the full value of the car back from my insurance + the gap insurance... silly not to do it really imo

What company was that with mate? Did you check their small print about glasses guide and also check your own insurance did not already cover this for the first year?

 

[Timewarp]

I did not buy such things, no point, I bought the car outright, so its mine and no intentions on selling it for a long time.

Isn't it incase it is stolen/written off rather than sold? Gap insurance doesn't help you there.

I've used https://shortfall.co.uk/ before.

 

[mustangguy64]

Isn't it incase it is stolen/written off rather than sold? Gap insurance doesn't help you there.

I've used https://shortfall.co.uk/ before.

Shortfall excludes cars not in Glass's Guide which at the moment the Mustang does not seem to appear (at least in the drop-down menus on-line).

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