News to me? I am just about to get an EV through Salary Sacrifice (but my own insurance), and so need GAP...

 

I was under the impression that all GAP products were “pulled” for a while earlier this year whilst the FCA were trying to formulate some rulings for dealerships/dealers selling as an add on ( and also surrounding the funding/financing rules within a credit agreement)

I also believe most are quoting again, but maybe not

Try ALA ?

 

Definitely available. It was the dealer scam policies that were stopped. Open market deals still available, try go compare or confused or whatever.

 

Thanks for all the replies - will give ALA a cal..

 

GAP insurance is a bit of a con to me.

If you have a car on finance/lease you have agreed to pay the finance/lease to have that type and age of vehicle.

If it is written off it is no longer new and obviously worth less.

But there are many cars of the same type and age for sale 2nd hand.

The duty of car insurance is to put the person back into the position they were in before the incident.

So the fee you pay the insurance company should reflect that.

If the car was £46,000 but worth £36,000 on the 2nd hand market it's irrelevant

If you own it and owe money you carry on paying the original agreement whilst driving the car sourced to replace it.

Same as regards the leasing company you carry on paying the lease and the car sourced replaces that one..

Where is this gap?

 

If you own it and owe money you carry on paying the original agreement whilst driving the car sourced to replace it.

True on a non-secured loan, but not on an HP/PCP agreement
And the question of the thread relates to a Contract Hire (or Lease) agreement which is a whole can of worms bigger,

My view differs, in that for most with a finance agreement, GAP bought direct ( ie NOT from a car dealer) is a pretty good value product.

 

Gap covers your contractual responsibility to the leasing company your insurers the value of the car and the same are not the same.
The closer to the end of the lease the closer you outstanding amount under the contract is to the value of the car but in the early stages it is wide apart as the cost Ie interest you agreed to pay has not been paid. It is all in the small print. It is a valuable product that no one should overlook without due consideration.

 

The owner of the vehicle should be responsible for insuring it. They also should have the responsibility for providing you with a replacement. IMO

 

If only it worked like that

 

You’re in denial.

 

Some leases do I believe but all that will happen is it will be added to your leasing cost. I myself may well be happy to pay that I bet many here would automatically assume it would be cheaper to do it yourself😉😆

 

This video explains the advantages of having GAP insurance and gives some example quotes as well.