08-31-2019, 07:31 PM | #1 |
Private First Class
40
Rep 134
Posts |
Gap insurance cancellation help
Hi, I bought gap insurance from warranty direct when I got my car late last year.
I received an email and letter a few weeks ago saying underwriter in liquidation so gap insurance cancelled from August 29. 90 percent pro rota refunded by the fscs nd remaining 10 percent pro rata refunded by warranty direct. However, whilst looking for new gap insurance, I'm struggling to find any gap insurance companies offering gap for cars purchased over 180 days, and I purchased October 17. I had 3 years gap and of course this cancellation is completely unexpected and not something of my own fault. However, I have nothing now to pay out Return to invoice like my gap offered in the case of an accident. What on earth do I do?! |
09-01-2019, 06:03 AM | #3 |
Private
38
Rep 57
Posts |
Hello Dude, this sounds rather unfortunate. Have warrenty direct given you any options at all? It's pretty poor form to leave you in the lurch like that.
Further to this when exactly did you buy the car? Late 2018 or October 2017? Have you looked at ALA Return To Invoice Plus? |
Appreciate
0
|
09-01-2019, 09:10 AM | #4 |
Captain
206
Rep 624
Posts |
This happed to me on my last car and the broker arranged for the policy to be transferred to a different underwriter - worth giving warranty direct a call to see if they intend to help you out in the same way.
|
Appreciate
0
|
09-01-2019, 09:51 AM | #5 | |
Private First Class
40
Rep 134
Posts |
Quote:
I got the car late October 2018 Spelling error! I've looked at Ala since I made this post and motoreasy. Not sure which to get. |
|
Appreciate
0
|
09-01-2019, 03:31 PM | #6 | ||
Captain
351
Rep 725
Posts |
Quote:
They were easy to get hold of for advice during the whole process too and didn't employ any of the pathetic delay tactics the insurer sadly tried. I've used ALA for gap on every car since as they are very competitive too, I don't work for ALA nor am I affiliated with them in any way. |
||
Appreciate
1
C320342.50 |
09-02-2019, 06:51 AM | #7 |
Private
11
Rep 69
Posts |
I can't say I am a fan of Gap insurance. A few years back I had my 1.5 year old car stolen.Had hire car for 4 weeks and the insurance company simply sourced another car which was 1 year old for me and paid the dealer directly job done, no gap insurance required.
It's only if you want another new car rather than a like of like car that gap insurance will pay out. So I have lost only 1 car in 30 years. |
Appreciate
0
|
09-02-2019, 06:59 AM | #8 | |
Lieutenant
218
Rep 403
Posts |
Quote:
OP, my advice is to just relax. Spend your refund on a nice meal out with those close to you. In all probability nothing will happen to your car that would require gap insurance and if it does, you'll handle it. You can't insure everything. |
|
Appreciate
0
|
09-02-2019, 07:19 AM | #9 |
Major
705
Rep 1,141
Posts |
Gap insurance on a car that has outstanding finance is extremely important.
Lets say you paid £50K for a new car, and it gets written after 12 months. Insurance company value the car at £30K, but outstanding finance is £40K. You're in the hole for £10K. I'd rather spend a few hundred pounds at the beginning to have GAP insurance to cover the shortfall. I think I paid about £250 for vehicle replacement GAP for 4 years (with ALA). This would get me in an M340i Touring if my current car gets written off. What's not to like. |
Appreciate
1
C320342.50 |
09-02-2019, 07:43 AM | #10 |
Major
461
Rep 1,303
Posts |
Exactly... most people will buy a car on finance - in which case GAP is a must.
A few hundred pound upfront to protect yourself for potentially thousands.. whats not to like?! May aswell just say why bother going fully comp - third party insurance will be ok... nothing will happen! |
Appreciate
0
|
09-02-2019, 08:10 AM | #11 | ||
Lieutenant
218
Rep 403
Posts |
Quote:
Quote:
|
||
Appreciate
0
|
09-02-2019, 11:32 AM | #12 |
Captain
206
Rep 624
Posts |
GAP is even more important if you're on lease as in the even of a total loss you're on the hook for the full cost of the car plus any payments due to the end of the lease - the costs would be astronomical.
|
Appreciate
0
|
09-02-2019, 12:50 PM | #13 |
Major
1508
Rep 1,387
Posts |
I have to ask how much of the cost of a car are you folks financing. I am rather old fashioned and work on the basis that if I cannot put a third or more of the money up front, I can't afford it.
Guess I'm the guy out of step. Last time I traded a car here in the US the dealer expressed astonishment that the trade in value more than covered the outstanding finance. He actually called it equity, which gave me a straight face problem. Equity in a depreciating asset like a car? ROFLMAO!! |
Appreciate
0
|
09-02-2019, 01:13 PM | #14 | |
First Lieutenant
170
Rep 358
Posts |
Quote:
People will buy the car, finance it fully and pick the terms that get them a monthly payment they like and not worry about anything else (like how much more interest they are tacking on over the life of the loan or how long they are paying on it). And then they can barely afford those payments, so they have no money for repairs or maintenance costs. Then what little extra money they have they shell out for mods and get the cheapest quality they can. Those are the ones who are bitching about how "unreliable" BMWs are and lowballing parts in the for sale forums.
__________________
|
|
Appreciate
0
|
09-02-2019, 02:44 PM | #15 | ||
Captain
351
Rep 725
Posts |
Quote:
If I didn't have the gap it would have been financially a very very different experience. I think for such a minimal amount the policy has great value. I don't understand people saying it's a waste of money as you will "probably" never need it and it's like throwing money away. I would agree if you were paying dealer GAP prices of £400/£500. But then again who would do that?! |
||
Appreciate
0
|
09-02-2019, 04:23 PM | #16 | |
Captain
206
Rep 624
Posts |
Quote:
|
|
Appreciate
0
|
09-02-2019, 04:37 PM | #17 |
Lieutenant
38
Rep 582
Posts |
But your charge for usage will include the cost of the depreciation...
__________________
Current: 2021 M340i xDrive, 2001 530i Sport
Previous: 2015 530d M Sport, 2010 530d SE, 2008 335i M Sport |
Appreciate
0
|
09-03-2019, 03:30 AM | #18 | |
Captain
206
Rep 624
Posts |
Quote:
|
|
Appreciate
0
|
09-03-2019, 10:51 AM | #19 |
Second Lieutenant
127
Rep 202
Posts |
I've leased my last three cars with minimum down and before I ever did, I did a very concise spreadsheet to work it out. This was before the current leasing trend really took off. It is, IMO one of the most economical ways to run a car.
Back in July my 11 month old lease car got stolen. Insurance value was woefully low as far as I was concerned. I didn't have gap. Shat myself for a month until the lease company decided to tell me what the short fall would be. I expect 5 to 6k which whilst I do have in savings, I cant afford to lose. Lucky for me it worked out to be only £588, which I was very surprised at. I then thought screw it and got a bank loan to buy my second hand F32. Love the car... HATE "owning" it after leasing for so long and appreciating the benefits. When I eventually return to leasing I will never not take gap again. The £200 or so would have been worth it just to save my peace of mind during that month of not knowing. Each to their own on finance decisions, but leasing isn't the dirty word it used to be and when you think long and hard about it, whats the actual benefit of owning an asset that is guaranteed to depreciate? Like the saying goes... if it flies, drives, floats or f@@ks.... lease it! :-) |
Appreciate
0
|
Post Reply |
Bookmarks |
|
|