Gap insurance on personal lease

[Ascender]

So, what's the deal with gap insurance, is it a must-have on a lease? Presumably in the event of writing it off, the insurance company are looking to pay out for a replacement car of similar age, so will be market value whereas the lease company are looking for the full value?

Any recommendations for providers?

Thanks!

[GG.]

Didn't we do this a few weeks ago?

[Ascender]

Didn't we do this a few weeks ago?

[GG.]

http://forums.ov9.co.uk/viewtopic.php?f ... =insurance

[Ascender]

http://forums.ov9.co.uk/viewtopic.php?f ... =insurance

Nice one, thanks!

[Ascender]

Nope, none the wiser

[bobnaldo]

https://www.ala.co.uk/index-w1.php?utm_ ... GriLVdcg.1

Use these guys and ask for the piston heads discount.

I paid £71 for two years on a golf r, which comes with a guarantee of being stolen.

[JLv3.0]

Don't these threads normally result in some really tasty arguments? Have we lost the will to win?

(I've never even been able to absorb what gap insurance is tbh)

[bobnaldo]

I’m not sure either, just got told it’s recommended if you lease and for £71 it wasn’t really worth thinking more than that.

[Simon]

Don't these threads normally result in some really tasty arguments? Have we lost the will to win?

(I've never even been able to absorb what gap insurance is tbh)

It's simple really. When you lease or PCP a car you pay x a month. However, if it's written off early in the lease, the value of the replacement (ie the payout) is less than the outstanding monthlies, so you're in negative equity effectively. The insurance company won't cover your liability. That, and you've lost things like your initial deposit. Various gap products cover this shortfall.

[JLv3.0]

Seems straightforward enough. And now please explain why some people seem to view gap insurance as if its the anti-Christ? Jobbo for one, from memory.

[Simon]

Because Simon argues that there isn't anything that can be insurable. He argues (I think) that you can insure a car, but you can't insure your losses outside of the actual replacement vehicle. That, and some gap policies actually put you back into the start again, so if you write off a 2 yr old car, you get a new one under the gap policy. That is betterment, which isn't 'allowed', he argues.

[Carlos]

Just ask Seb, he won at GAP and paid his mortgage off

[Jobbo]

I’ve never argued that GAP insurance which covers the difference between the value and outstanding balance of finance/liability for lease payments is a bad thing.

However, I have regularly said you may well be fully covered by your normal policy or the lease wording so it may be completely unnecessary. And Bobnaldo’s posts on this thread are great evidence of this; it’s £71 not to bother reading your paperwork.

[Jezh]

Don't these threads normally result in some really tasty arguments? Have we lost the will to win?

(I've never even been able to absorb what gap insurance is tbh)

Don't get me started!