Thread: GAP Insurance
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      02-26-2013, 10:19 AM   #5
Johnny5iv3
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Drives: F30 320i MSport EBII
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Quote:
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?
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