Thread: GAP Insurance
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      02-26-2013, 12:19 PM   #5
Johnny5iv3's Avatar
United Kingdom

Drives: F30 320i MSport EBII
Join Date: Feb 2013
Location: Manchester, UK

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Originally Posted by Steve_M_Sport View Post
I agree it seems high. I think 15k should be enough to cover most shortfalls.
Is this enough to get a replacement vehicle??

For argument sake, lets say my car is 33k (including interest paid with finance) on a 3 year PCP (BMW Select) payment plan having put down 5k deposit.

Residual Value of car after 3 years is 15k so I have 13k to pay on finance after paying 5k deposit.

Lets say car is written off just after year 2 and I still have 4.5k to pay on the finance and the car is valued at 20k. So my insurance company will give me 20k - 4.5k to pay off finance = 15.5k. 15k is then need to pay the residual value of the car and that leaves me with 500 left plus another 15k from GAP insurance. And with 15.5k this will not get me another 30k car or am I missing something?