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Discussion Starter · #1 ·
Ok. There are a lot of GAP policies about, AXA, Abraxus, Hitachi etc.......

But are they all the same? On the face of it yes. They all offer to recompense the difference between an insurance write off and what you paid for the car.

However, and you knew there was a but, there are differences:

1. Most GAP insurance products give you the difference between the insurance settlement and your invoice price (less some accessory and RFL items). But they have a clause called "Market Value", whereby if your insurance company gives you £8000 for your car, but Glass's top book price is £10000 then the GAP cover will not cover this £2000 shortfall.

Eg. Invoice Price less RFL and retro accessories £20000
Insurance Settlement £8000
Glasses Clean Valuation £10000

You get from GAP £10000
Ending up with only £18000 when you should have £20000


2. Most GAP policies have a short claim periods, some as low as 30 days. And take a long time to pay out on a claim.

3. With most policies if you buy a new car and it is written off in year 1, the policy is useless. There is one, that transfers to the replacement car, so you don't lose out.

Please check the small print, and don't just click I AGREE on the internet for Ts and Cs.
 
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Ok. There are a lot of GAP policies about, AXA, Abraxus, Hitachi etc.......

But are they all the same? On the face of it yes. They all offer to recompense the difference between an insurance write off and what you paid for the car.

However, and you knew there was a but, there are differences:

1. Most GAP insurance products give you the difference between the insurance settlement and your invoice price (less some accessory and RFL items). But they have a clause called "Market Value", whereby if your insurance company gives you £8000 for your car, but Glass's top book price is £10000 then the GAP cover will not cover this £2000 shortfall.

Eg. Invoice Price less RFL and retro accessories £20000
Insurance Settlement £8000
Glasses Clean Valuation £10000

You get from GAP £10000
Ending up with only £18000 when you should have £20000


2. Most GAP policies have a short claim periods, some as low as 30 days. And take a long time to pay out on a claim.

3. With most policies if you buy a new car and it is written off in year 1, the policy is useless. There is one, that transfers to the replacement car, so you don't lose out.

Please check the small print, and don't just click I AGREE on the internet for Ts and Cs.
I think GAP is crap :D
 

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Matt, are you providing a recommendation here or just pointing out the shortfalls of GAP products, and highlighting the benefits of Audi's own product? :)

I'm in the market for some GAP, but I think Audi's product is over priced if you compare the headline figures from other providers...
 

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Ok. There are a lot of GAP policies about, AXA, Abraxus, Hitachi etc.......

But are they all the same? On the face of it yes. They all offer to recompense the difference between an insurance write off and what you paid for the car.

However, and you knew there was a but, there are differences:

1. Most GAP insurance products give you the difference between the insurance settlement and your invoice price (less some accessory and RFL items). But they have a clause called "Market Value", whereby if your insurance company gives you £8000 for your car, but Glass's top book price is £10000 then the GAP cover will not cover this £2000 shortfall.

Eg. Invoice Price less RFL and retro accessories £20000
Insurance Settlement £8000
Glasses Clean Valuation £10000

You get from GAP £10000
Ending up with only £18000 when you should have £20000


2. Most GAP policies have a short claim periods, some as low as 30 days. And take a long time to pay out on a claim.

3. With most policies if you buy a new car and it is written off in year 1, the policy is useless. There is one, that transfers to the replacement car, so you don't lose out.

Please check the small print, and don't just click I AGREE on the internet for Ts and Cs.
My maths may be a little off, or perhaps I'm missing something, but if you didn't have GAP insurance at all, then in your example, who exactly covers the £10,000 difference between the sum you get for your car without GAP (£8000) and that which you get with it (£18,000)? Yes, there is a difference between what you've ended up with and the original cost of the car, but you get significantly more than you would get without GAP.

I accept also that there are certain hoops you have to jump through in order to get your money out of them, but then this is true of all insurance companies - their stock answer when you try to make a claim is "NO!". They'll sort out exactly why it's no later, but it's still an initial "NO!". If you can't inform your GAP insurance company within 30 days of the loss occurring, then there's something seriously wrong with you, and you'll probably get nothing out of your main car insurance also if you don't bother telling them either, so then you end up with £0...

Also, I agree that GAP probably is worthless in the first year as most UK insurance companies will offer a replacement car for total write-offs within that time, but for years 2 & 3 (and even up to 4 for some policies) I think they're a cheap insurance - £208 for 3 year's cover up to a max of £25,000 is the best I've found so far.

Ultimately you don't really care whether you get money back from your main car insurance or your GAP insurance, you only want the maximum you can screw out of them both in order to start again with a new car. You're definitely better off with it should the worst happen and your car is written off after the first year.

One thing to look for on GAP insurance though is whether they include the VAT for the total price of the car you bought from the dealer - some get round this, but don't really advertise the fact, just bury it somewhere in the small-print, so Matt's advice is spot on - read the Ts & Cs!

(ps I have no connection to any insurance company, in case you're wondering!)
 

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Discussion Starter · #5 ·
Matt, are you providing a recommendation here or just pointing out the shortfalls of GAP products, and highlighting the benefits of Audi's own product? :)

I'm in the market for some GAP, but I think Audi's product is over priced if you compare the headline figures from other providers...
We don't offer Audi's own product, we offer one by AMS who are owned by Hamilton.

As I said I can't sell it to you if you didn't buy car from us, but I often get people quoting lower figures. There are reasons for these figures, and as long as you know all the facts and are happy then any GAP is better than none.

But many people are signing up for GAP and they are not getting what they think they are getting, I am just saying check all the T & Cs and make sure you are happy.

£208 is cheap, but does it give you finance shortfall for years 4 and 5, is it transferable to a new for old replacement vehicle, do you have 120 days to make a claim, does it pay out in 24 hours on the full difference not just market value clause (and then the co. argues with insurer over the difference).

£350 gives ALL of that with the AMS product we offer, and now offers a 4 year product as well.

In a nutshell, I recommend GAP, but you get what you pay for.
 

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We don't offer Audi's own product, we offer one by AMS who are owned by Hamilton.

As I said I can't sell it to you if you didn't buy car from us, but I often get people quoting lower figures. There are reasons for these figures, and as long as you know all the facts and are happy then any GAP is better than none.

But many people are signing up for GAP and they are not getting what they think they are getting, I am just saying check all the T & Cs and make sure you are happy.

£208 is cheap, but does it give you finance shortfall for years 4 and 5, is it transferable to a new for old replacement vehicle, do you have 120 days to make a claim, does it pay out in 24 hours on the full difference not just market value clause (and then the co. argues with insurer over the difference).

£350 gives ALL of that with the AMS product we offer, and now offers a 4 year product as well.

In a nutshell, I recommend GAP, but you get what you pay for.
Matt,

Sounds a good deal, particularly the bit about transferring it to a new car. I know you said you can't sell it to someone who didn't get their car through you, but do you have any contact details for them? Phone number, email or website? Can't find anything about them through Google.

Any anecdotal evidence that they're any good when it comes to making a claim? I would think some of your clients (no names, no pack-drill!) must have had it and then had need of their services?
 

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Matt,

Sounds a good deal, particularly the bit about transferring it to a new car. I know you said you can't sell it to someone who didn't get their car through you, but do you have any contact details for them? Phone number, email or website? Can't find anything about them through Google.

Any anecdotal evidence that they're any good when it comes to making a claim? I would think some of your clients (no names, no pack-drill!) must have had it and then had need of their services?
Yeh I wanna know about them too. I'm looking for GAP for when my car comes too.
 

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We don't offer Audi's own product, we offer one by AMS who are owned by Hamilton.

As I said I can't sell it to you if you didn't buy car from us, but I often get people quoting lower figures. There are reasons for these figures, and as long as you know all the facts and are happy then any GAP is better than none.

But many people are signing up for GAP and they are not getting what they think they are getting, I am just saying check all the T & Cs and make sure you are happy.
Thanks, I understand the whole thing a little better now and I'll add my name to the list if you're able to supply any further details.
 

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I would never buy a car worth over £25,000 without taking GAP insurance. it is essential if you purchase your car via finance. often cars are worth less or similar amount to the finance and dealers often give you a lower interest rate on finance when you take out GAP.

My understanding of theGAP from my dealer covers any shortfall between an insurance payout and the total invoice price i paid including dealer fit stuff upto £20,000.

For example if my car got was totalled/stolen when my car is 13 months old i doubt any insurer would give me more than £30,000 but im sure the finance is more.

(im not a GAP salesman lol)
 

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...As Vin points out... if you are financing your car on a PCP or similar, the value willl dip under the oustanding balance cost for the first few years. If you dont want to be left with no car AND a bill for several thousand, then GAP is for you. Personally, I work with sales contracts all the time, and the simpler, the better. If you can find a product that offers to cover the shortfall against a brand-new replacement vehicle then this is simple and you will not be arguing over the market value with either insurer... you will just get a new car. I think around £400 for 3 years should get you this on an S5, but I've not searched for a quote recently.
 

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As it is not transferrable why not got for 2 years and then renew it I know the valuation after two yrs would be much less than it is now but I feel most of us change our cars after 2yrs anyway
 

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Gap Insurance

I took out the GAP insurance from Audi,bit pricey at £565,3 year policy seems as good as any that ive seen on the market.The way i always look at things is that once its paid the moneys gone anyway and i didnt want to regret it later on.
 

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Discussion Starter · #14 ·
Just Found Out......

I CAN supply GAP cover independent of car purchase.

I would need a copy of purchase invoice, and normally within 30 days of delivery to you, (although I have been told that subject to a phone call I may be able to offer it past that time).

If you are interested PM me or call 01256 307500 main switchboard, ask for Matt White.

I am happy to fax an information sheet to you on the policy so that you can check the terms.
 

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I took out the GAP insurance from Audi,bit pricey at £565,3 year policy seems as good as any that ive seen on the market.The way i always look at things is that once its paid the moneys gone anyway and i didnt want to regret it later on.
Having just taken delivery (5.00pm last night) of my new A5, I had a discussion with my saleman ref Gap Insurance and I basically said that I could get the same cover cheaper elsewhere (true). Almost without hesitation, he said that he could probably do the 3 years Gap Plus (I have no outstanding finance) cover for £300 instead of the £495 I was originally quoted and I said if he could, I would take it there and then. So off he went to speak to 'whoever deals with these things', came back said OK and so did I.
 

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I CAN supply GAP cover independent of car purchase.

I would need a copy of purchase invoice, and normally within 30 days of delivery to you, (although I have been told that subject to a phone call I may be able to offer it past that time).

If you are interested PM me or call 01256 307500 main switchboard, ask for Matt White.

I am happy to fax an information sheet to you on the policy so that you can check the terms.
Matt can you cover for 4 years or just 3?
 
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