Speak EV - Electric Car Forums banner

1 - 5 of 5 Posts

·
Save up to 85% with GAPinsurance.co.uk
Joined
·
15 Posts
Discussion Starter #1
OK folks... see my previous post detailing what GAP insurance is and how it works.

This post, focuses on the far-from-obvious but potentially costly downfall of almost every other Invoice GAP insurance policy available in the UK when you're purchasing an electric vehicle (e.g. not Contract Hire) but, you've elected to lease the battery.

To understand the issue, you need to understand how Invoice GAP insurance works so... in the event of your vehicle being written off through accident, fire, theft or flood:

Invoice GAP insurance
Aims to pay the difference between your motor insurance payout and the original "Net Invoice Selling Price" that you purchased the vehicle for.​

This "Net Invoice Selling Price" is almost always defined as the figure showing on your original car sales invoice as the price you paid for the car inclusive/exclusive of various potential supplementary costs.

The problem is... if you elected to lease the battery, that "Net Invoice Selling Price" will be a figure that excludes the cost of the battery because, the value of the battery will be declared on the separate battery lease agreement (it'll normally be referred to as the "Insured Value of The Battery").

For example... in this screenshot of an invoice for the purchase of a Renault Zoe, you might assume that the total on-the-road "net invoice selling price" was £15,089:


However what this invoice doesn't reflect is that the battery is leased and that the insured value of that battery is £6,160:



This being the case, a straight-forward Invoice GAP insurance policy which, in the event of write off will only pay the difference between motor insurance payout and the invoice price as defined on the invoice itself, would in this case (putting aside for the moment, any possible other excluded elements of the invoice price) only be aiming to pay the difference between the motor insurance payout and at best, the £15,089.

This customer however would, as part of that Total Loss claim, need to be paying some or all of the £6,160 due to the finance company as a result of the loss of the battery which, is going to be a sizeable chunk of money out of their settlement and therefore considerably reduce the amount of money they have left (short of dipping in to their own funds) to put towards the cost of the next/replacement vehicle.

How our policies are different.

When purchasing GAP insurance for a vehicle which entails a leased battery, we ask that the applicant declares to us, the combined sum of the total on-the-road price of the vehicle plus the insured value of the battery. In this case therefore, we'd expect the applicant to declare £21,249 (£15,089 + £6,160) as the invoice price of the vehicle.

This being the case, in the event that this vehicle was then written off within the policy term, our Invoice GAP insurance would (subject of course to the full policy T's & C's), be aiming to pay the difference between the motor insurance payout and £21,249.

Or putting it simply... in the case of the figures above, our Invoice GAP insurance policy would, despite having an identical name to the Invoice GAP insurance policies peddled by almost all of our competitors, be aiming to potentially pay out as much as £6,160 more than a competitor's policy would!

The moral of this tale?

As with anything... the devil is very much in the detail and if you're comparing our policies with any policy from any other provider some of that detail might not be remotely obvious... until it's too late - please take the time to ensure that you understand that detail as best you can.

Chat to us... we're friendly folk and we don't use high pressure tactics!
 

·
Premium Member
Joined
·
9,921 Posts
Yes, when I looked at PCP'ing a Leaf it was made clear that you insure the leased battery.

One of the many reasons I did not go ahead with a PCP deal.

Cheers
Why would you PCP a Leaf Flex? I didn't think anyone bought those any longer?
 

·
Registered
Joined
·
538 Posts
Main Nissan dealers seem to like selling s/h cars on Flex to maintain another income stream. I tried to enquire about batteries being bought out prior to sale but salesman not interested. Cheers
 

·
Premium Member
Joined
·
9,921 Posts
Main Nissan dealers seem to like selling s/h cars on Flex to maintain another income stream. I tried to enquire about batteries being bought out prior to sale but salesman not interested. Cheers
Odd, because the dealership doesn't get the rental income, RCI do. I am sure @Miles Roberts previously said they tend to change any Flex they get to owned?
 
1 - 5 of 5 Posts
Top