Best GAP insurance ?

[DM]

Has anyone who has recently taken delivery of a T6 taken out GAP insurance? If so who did you go with, what term did you decide to take?

Alternatively, would it be better to find an insurance policy with new for old replacement?

Thoughts and comments welcomed. Many thanks.

 

[iamchucky]

I've thought of this but decision will probably depend on the Insurance that I take out (Cali due March).

From quick look I've had ALA seem good with good reviews & competitively priced, I've asked a few questions and there customer service team is pretty good, but as always you only know how good the insurance is when you try to claim.

They do a vehicle replacement plus (what I was looking at) - 'A Vehicle Replacement Insurance policy will, in the event of a Total Loss claim, either pay the difference between the Comprehensive Insurance settlement and replacing your vehicle new for old' rather than invoice based.

You choose the value of cover that you want to protect yourself for the term of the cover (up to 5 years allowable) Rough guide is £30k worth of cover on a Cali for 4 years was about £340. So the longer the policy the bigger the value you probably need to take out... being honest £30k on a Cali is probably too much but not sure how Insurance Co's would value on a total loss and difference is extra protection didn't work out that much more on the premium.

Seems as though you can take out the policy up to 1 year after delivery (Might be worthwhile if you are covered in the 1st year by your Insurance Policy but would need to check this).

Found a link to buy with 10% off until end of March

http://www.ala.co.uk/honestjohngap/ code is HJ65

Appreciate any thoughts from others on this but as I said we'll probably utilise Insurance Policy in year 1, but still have Insurance to sort (another bit to research!)

 

[WelshGas]

 

[DM]

Does anyone know if it is possible to take out GAP insurance at a later date? I am tempted by the Caravan Club Insurance which offers new for old for two years. Could I then take out a GAP policy to cover years 3, 4, and 5?

 

[mucksmuff]

We used this one https://www.directgap.co.uk/products/vehicle-replacement-plus/

 

[DM]

We used this one https://www.directgap.co.uk/products/vehicle-replacement-plus/

Thanks - how many years did you decide to go for?

 

[mucksmuff]

Thanks - how many years did you decide to go for?

Went for 5 years was £300 ish.

 

[DM]

Went for 5 years was £300 ish.

£300 would be a no brainer. But as soon as the vehicle value goes over £50,000 the hike the cost up to £500 . I'll keep searching.

 

[DM]

Read the FAQs for Direct Gap and ALA. It seems that it is possible to defer the start date of the Gap Insurance but only by 12 months and only if the policy is purchased within 180 days of the date of vehicle purchase. On that basis I will probably use new for old on an insurance policy for the first year and purchase a 4 year gap insurance policy deferred for 12 months.

 

[blondebier]

Read the FAQs for Direct Gap and ALA. It seems that it is possible to defer the start date of the Gap Insurance but only by 12 months and only if the policy is purchased within 180 days of the date of vehicle purchase. On that basis I will probably use new for old on an insurance policy for the first year and purchase a 4 year gap insurance policy deferred for 12 months.

I'm glad this thread came up. Very timely. I'm looking at this very thing myself.

The policy I'm looking at with LV offers new for old replacement on new vehicles for the first year.

Deferring the GAP for 12 months and then buying a 4 year policy instead of 5 sounds like a great idea.

 

[DM]

Does anyone have any experience of gapinsurance.co.uk (Frank Pickles) ?

I was just about to sign-up with ALA but I've just discovered that ALA do not allow you to defer the start date of a gap insurance policy. I've insured the vehicle with Comfort and are comfortable using their free Gap Insurance for the first 12 months, so I do wish to defer.

The best deferred price was £289 from gapinsurance123 but their claim limit is £25,000 which is probably not going to cover the gap in 5 years time. The next best seems to be gapinsurance.co.uk underwritten by Ageas.
The cover looks OK in comparison to others but I've not heard of anyone using them.

 

[calimera]

Hi DM
Sure you're seen the which article on gap insurance
Here's the link
http://www.which.co.uk/money/insurance/guides/gap-insurance/return-to-invoice-gap-review/

 

[DM]

I've subjected you all to my indecision over GAP insurance for the past few weeks so its only fair to conclude by letting you know what I decided.

I have gone for a 5 year policy with ALA (£50,000 claim limit) using the Honest John discount code HJ65 which gives 10% (or thereabouts) discount. I have decided not to defer the start even though I have new for old cover with Comfort. It cost me £420.

There were cheaper deals around - £289 from gapinsurance123 and similar from gapinsurance.co.uk . However my (eventual) thinking was:

i) Many insurers have a much lower claim limit - as low as £25K. That is probably OK for a 3 year policy but not enough for a 5 year policy. I doubt that a 5 year old well used Cali will still be worth £35K.

ii) Some insurers limit Continental use to 90 days per annum. Whilst that would be plenty for me at the moment we will want to take some long trips as soon as we retire, which could (with a fair wind) be within 5 years.

iii) I could have saved £85 by going for a 4 year policy and deferring the start by 12 months. I had a long chat with Comfort about their new for old cover. The issue here is that there is a waiting list of 4 - 6 months for an equivalent new vehicle. Comfort do not offer new for old if you take a cash settlement. So in the event of a total loss you would have a choice of wait 4 - 6 months for a new one or take a reduced cash settlement.

£420 is going to feel like a lot if I don't claim on it (which obviously I hope I won't) but will seem like an absolute steal if my Cali is a total loss in 4 years time.

I appreciate that the value of insurance is very subjective and I'm sure others would decide differently.

 

[DM]

Does anyone have any experience of gapinsurance.co.uk (Frank Pickles) ?

I was just about to sign-up with ALA but I've just discovered that ALA do not allow you to defer the start date of a gap insurance policy. I've insured the vehicle with Comfort and are comfortable using their free Gap Insurance for the first 12 months, so I do wish to defer.

The best deferred price was £289 from gapinsurance123 but their claim limit is £25,000 which is probably not going to cover the gap in 5 years time. The next best seems to be gapinsurance.co.uk underwritten by Ageas.
The cover looks OK in comparison to others but I've not heard of anyone using them.

Update - I spoke to ALA on the phone. They do not recommend deferring but they will allow it.

 

[Chris H]

why did they not recommend deferral ?

 

[DM]

why did they not recommend deferral ?

Their view is that many new for old clauses have conditions attached to them (although they would say that, wouldn't they)!

However when I checked Comfort does have a clause stating that new for old is 'subject to availability'. Apparently some insurers consider 'subject to availability' to mean there is a vehicle in the UK available for immediate delivery. If there is not then they will simple settle on the basis of current market value.

I rang Comfort. The advisor I spoke to initially couldn't tell me what 'subject to availability' means. However she arranged for a colleague to call me back. I had a long chat with them. He assured me that Comfort would always provide a replacement vehicle under new for old unless the vehicle is no longer manufactured. However they will only provide a new vehicle - never a cash settlement. As we all know, T6s are on between 4 - 6 month delivery times. Comfort would order a new vehicle meaning you would be without a vehicle for up to 6 months. They would not provide an ex-demonstrator under new for old and if you took a cash settlement so that you could buy an ex-Demostrator or nearly new Cali then that would be deemed your choice and the cash settlement would be on the basis of current market value - not new for old.

I'm not sure how other insurance companies would interpret the 'subject to availability' clause. I guess a conversation would be required and preferably confirmation in writing if you want to rely upon it.