[ZedsRedBaby]

Originally Posted by 1966-TR4

What did you think would happen to the debt that you owe on the old car? The principle of indemnity is one of the core principles of insurance: that the policyholder will be put back to the same financial position after a loss as they enjoyed immediately prior to the loss - and not better.

Sure, I get it. Never really gave it much thought as I generally go for finance gap, ie as long I'm not out of pocket I don't care.

Just comes across sometimes as though VR is potentially a big win. I think you hit the nail on the head with "not better"

[Mike_H]

Originally Posted by 1966-TR4

If you own it and have no finance. Otherwise, you have 20 finance left to pay and are left with sufficient funds to buy a 20k car, which is exactly what you have lost.

But then you have swapped a 20k car with outstanding finance for a 20k car with no outstanding finance thanks to the GAP payout. A much better position.

[Novakbmw]

From my perspective never did I imagine I Would be involved in a total write off scenario. It certainly was extremely stressful and not something I want to be involved in again.

The insurer came with an offer today which apparently is full retail , now waiting on the gap which could take a while ....

[nashdm2]

In your opening statement OP, you state the car is 2.5 months old. Then you say its 2.5 years old?

[NotGotABimmer23]

Originally Posted by Novakbmw

From my perspective never did I imagine I Would be involved in a total write off scenario. It certainly was extremely stressful and not something I want to be involved in again.

The insurer came with an offer today which apparently is full retail , now waiting on the gap which could take a while ....

Well if the insurer is offering full retail price and assuming that covers any finance on the car the gap payout will be 0.

[Novakbmw]

Apologies that was a typo in the first post. I was still in shock from the event

It’s 2. 5 .Years, correct me if I’m wrong but vehicle replacement regardless if the insurance payout is more than the finance , the gap still pays for a replacement car ?

In my instance there is still a few hundred pound shortfall from the insurer ....vs the finance

I have vehicle replacement gap

[NotGotABimmer23]

Originally Posted by Novakbmw

Apologies that was a typo in the first post. I was still in shock from the event

It’s 2. 5 .Years, correct me if I’m wrong but vehicle replacement regardless if the insurance payout is more than the finance , the gap still pays for a replacement car ?

In my instance there is still a few hundred pound shortfall from the insurer ....vs the finance

I have vehicle replacement gap

You said full retail price payout....

If its less than the price of a new one then yes gap will pay out.

[Novakbmw]

Apologies I was only stating what the insurer told me on the phone . They said full retail price of the vehicle glass guide .. etc ...the car is into it’s 3rd year.

There is a shortfall . Not a massive one which is helpful. Either way I took out gap after reading posts on here . When news comes of the gap if it does, I will post on here

[Novakbmw]

Hi guys I have been offered a replacement car value but the car shows a PCP discount . As in the replacement value ? Pcp discount us much higher than going and buying a car without PCP

Is that fair as I would not buy a new car on PCP ?

Original car was on PCP

Am I ok to go ahead and accept the value

I have replacement car plus

[isleaiw1]

Originally Posted by Novakbmw

Hi guys I have been offered a replacement car value but the car shows a PCP discount . As in the replacement value ? Pcp discount us much higher than going and buying a car without PCP

Is that fair as I would not buy a new car on PCP ?

Original car was on PCP

Am I ok to go ahead and accept the value

I have replacement car plus

well I guess the aim of insurance is to put you back in the position you would have been in before - and you had it on PCP before so including PCP discount seems fair (plus buy on PCP then settle the finance immediately if you have the cash...)

Of course there is also an argument that says never take the first offer....but if they are paying out on a replacement cost offer, allowing for PCP discount that you can match easily, then take it...

[ZedsRedBaby]

Originally Posted by isleaiw1

well I guess the aim of insurance is to put you back in the position you would have been in before - and you had it on PCP before so including PCP discount seems fair (plus buy on PCP then settle the finance immediately if you have the cash...)

Of course there is also an argument that says never take the first offer....but if they are paying out on a replacement cost offer, allowing for PCP discount that you can match easily, then take it...

Ooh let's play scruples!

How about insist on a cash purchase valuation, buy on pcp with discount, then settle and pocket the difference?