GAP Insurance

[istate75]

My new C7 BE has been sat in Emden since 12th Nov, I'm guessing it's being held up by the bad weather.

I'm assuming I should see it in the next couple of weeks though, so want to look into getting GAP Insurance sorted soon.

Anybody recommend a good insurer at a sensible price? I know Audi will be really expensive.

Ideally I would like back to invoice cover for 3 years. The car list price was £55k, but I've actually paid £44k.

[Bloater]

I used Gap Insurance for the wifes and my kids cars, good pricing, so much lower than the dealer.

GAPInsurance.co.uk | Get Quotes, Info and Buy Online. (http://www.gapinsurance.co.uk/)

I got a discount for mentioning I got the details from here, not sure if that is still going though.

HTH

[Scott K]

Chris Knott were quite good. Your own insurance might cover you for the first year and some insurers allow you to take it out up to a year old.

[Waddie]

Itate, I would have thought that with such a price difference between list price and invoice price I would have thought that you would want vehicle replacement cover?

My understanding of that is that you get a new vehicle with the same spec. Thats my understanding anyway, as it is something I will be looking at shortly.

[Fastfrank]

I used ALA as recommended by Honest John. They seemed to be about the cheapest. I would recommend you get vehicle replacement cover, so you get an equivalent new car even if the same discount is not available.

[istate75]

Itate, I would have thought that with such a price difference between list price and invoice price I would have thought that you would want vehicle replacement cover?

My understanding of that is that you get a new vehicle with the same spec. Thats my understanding anyway, as it is something I will be looking at shortly.

I am confused by the difference between back to invoice and new vehicle with same spec. Can anybody enlighten me?

[fest0r]

Back to invoice gives you what you paid at the time… new vehicle gives you the price of the current spec/model or your invoice price if that’s more.

If you make a claim in a few years with new vehicle cover and the price of the equivalent model has gone up by a few grand then your get that additional cash.

I’m sure GAPInsurance.co.uk | Get Quotes, Info and Buy Online. (http://gapinsurance.co.uk/) support@gapinsurance.co.uk (site sponsor) will be happy to give a competitive quote and further advice ;)

[GapInsurance.co.uk]

I am confused by the difference between back to invoice and new vehicle with same spec. Can anybody enlighten me?

Sure, in the event of your vehice being written off through accident/ fire, theft, flood etc, in your case they'd work as follows:

(Example based on you having purchased the vehicle brand new)

Invoice GAP insurance

Aims to pay the difference between your motor insurance payout and the greater of either:



The amount (if any) outstanding on finance at the time of claim, or
The original £44k that you paid for it


Replacement GAP insurance

Aims to pay the difference between your motor insurance payout and the greater of either:



The amount (if any) outstanding on finance at the time of claim, or
The original £44k that you paid for it, or
The list price of replacing the vehicle with a brand new equivalent at the time of claim (at the moment, you say this is is £55k, but over the duration of the GAP insurance policy, with facelifts and inflation, Brexit etc etc, it could well (likely will) increase)


Hence, given the discount you appear to have received, you'd almost certainly be considerably better off with Replacement GAP insurance rather than Invoice GAP insurance. Particularly as the Replacement GAP insurance is not usually that much more expensive either.

Indication of prices:

We can provide GAP insurance cover for durations of 1, 2, 3, 4 or 5 years. Most people buy GAP insurance for 3-years so that's what I've based the example prices on below. In addition, we can provide Claim Limits ranging from £5k to one matching the whole original price paid for the vehicle (in this case £44k).

For clarity, the Claim Limit is the most that the policy would be prepared to pay out in addition to that which you receive from your Motor Insurer towards either the original vehicle purchase price (Invoice GAP) or the equivalent new vehicle replacement price (Replacement GAP).

Most vehicles are expected to depreciate by at least 50% over a 3yr period. Some have been known to lose up to 70% over the same. Hence, we don't recommend a Claim Limit of any less than 50% of the original purchase price. How much higher you take the Claim Limit really becomes a matter of personal preference and/or budget (though as you'll see below the price difference is nominal).

My suggestion in terms of the claim limit is that based on a vehicle bought for £44k (with a list of £55k), a £20,000 Claim Limit (being less than 50% of the original purchase price) is not likely to be sufficient. The next level up is £25,000. I believe that £25,000 should be the absolute minimum Claim Limit you consider though for precious little difference in cost, you'd be better with a higher limit. Obviously if you choose to go for Replacement GAP insurance which will be tracking the prone-to-increase list price of a new equivalent over time, it would make sense to select a claim limit higher than you might do with an Invoice GAP insurance policy.

Invoice GAP insurance, 3yr cover:

£25,000 Claim Limit = £161.62 less 10% forum discount = £146.36
£37,500 Claim Limit = £165.72 less 10% forum discount = £149.15

Replacement GAP insurance, 3yr cover:

£25,000 Claim Limit = £189.43 less 10% forum discount = £170.49
£37,500 Claim Limit = £200.28 less 10% forum discount = £180.25
£44,000 Claim Limit = £211.13 less 10% forum discount = £190.02

Discount is achieved by using the forum discount code at the time of purchase. The discount code is "VWAF10".


If you require a quote for an alternative duration and/or Claim Limit, please get in touch.

Further reading:

You can read more about our Invoice GAP insurance here (http://www.gapinsurance.co.uk/invoice-gap-insurance.asp?Ref=VWAF).
You can read more about our Replacement GAP insurance here (http://www.gapinsurance.co.uk/replacement-gap-insurance.asp?Ref=VWAF).
You can view the terms and conditions of both/either, here (http://www.gapinsurance.co.uk/gap-insurance-terms-and-conditions.asp?Ref=VWAF).

Feel free to email support@gapinsurance.co.uk, or use the livechat facility on our website (www.gapinsurance.co.uk (http://www.gapinsurance.co.uk/default.asp?Ref=VWAF)) or indeed call us on 01943 850999 for further assistance.

Or of course you can continue to post details in this thread... whatever suits you best.

Best wishes

David

[belly buster]

Nice spec istate I know you will love the new car.

[Lazyoaf]

I took audi finance and GAP was thrown in for free (sorry)

[GapInsurance.co.uk]

I took audi finance and GAP was thrown in for free (sorry)


Define "free".

I'd take the view that if the dealer is able to offer "Free" GAP insurance, there is clearly enough profit in the deal for them to be able to absorb their (probably) inflated cost of a (usually) inferior GAP insurance policy to create the perception that the customer is getting something for nothing.

I'd be surprised if your invoice (not the order form) and/or finance documents don't still detail a premium for GAP insurance (not least because it's now a legal requirement for the GAP insurance premium to be itemised separately). Of course if you then have an interest-bearing finance agreement too, it's possible you'll be paying interest on that figure too.

Something to watch out for though, is that the Audi (or indeed any car-manufacturer/dealer) branded GAP insurance policy is (normally) actually just an Invoice GAP insurance policy which, in the event of the vehicle being written off, will aim to pay the difference between your Motor Insurance payout and (crucially) the price you paid for the vehicle after any/all discounts were applied. If you consider that in most cases, Motor Dealers (as I touch on above) will itemise a "Free" GAP insurance policy at full price on the invoice and then take the/extra discount off the price of the car to compensate (e.g. if they originally quote £500 for the GAP insurance but then agree to give it to you FOC, they'll usually show the GAP insurance on the invoice at £500 but then reduce the price of the car by £500 instead). On face value most people won't see any issue with this (the end price at the time of buying the car is the same - who's going to complain about getting something for (apparently) nothing?), except when you realise that at the time of any claim on that free GAP insurance policy, it'll be paying the difference between the motor insurance payout and the now £500 lower than you initially thought, purchase price of the vehicle. The net effect being that you're £500 short at the time of claim!

When we're aware of customers in this position we advise that one option available to them is to cancel the dealer-sourced policy within the initial cooling off period by following the cancellation instructions with the GAP insurance contract itself. This will normally (few companies charge cancellation fees within the cooling off period but, some might) result in the customer receiving a cheque in the sum of 100% of what the car sales invoice (again not the Order Form) showed the GAP insurance policy was purchased for (in my example above, £500). They can then either buy the same type of Invoice GAP insurance cover from us, or step it up to the superior Replacement GAP insurance - either way it'd normally be at a considerable saving over that of the dealer's policy and usually with superior T's & C's too.

Normally, even if there was a cancellation fee charged and even if you're just outside of the initial cooling off period of the dealer's policy and even if you consider that the cheque refund doesn't usually give any consideration for the interest that will be payable over the term of the finance (if the GAP premium was originally part of the balance financed), with few exceptions, the customer ends up retaining the extra discount off the cost of the vehicle, gets superior GAP insurance cover much cheaper and ends up with money in their back pocket too.

Food for thought perhaps?

[istate75]

Nice spec istate I know you will love the new car.

Can't wait to get it now. It's been sat in Grimsby since 24th November!