[t5pilot]

They should offer current market value, based upon age, mileage & specification.
If the car is less than 12 months old & you're the 1st registered keeper, it will be replaced "like for like" irrespective of initial cost.
On a car over a year old (or you're within the year but not the 1st keeper), If you have GAP, then it's pretty irrelevant what they pay, as GAP covers any shortfall, either as return to invoice or vehicle replacement, depending which you have. Obviously, if you have vehicle replacement GAP, you'll get a higher payout.

[Novakbmw]

Ahh hmm is every insurer different or do you have to declare exact factory options

And does the gap provider take into account the discounts available when buying a new car

[t5pilot]

Originally Posted by Novakbmw

Ahh hmm is every insurer different or do you have to declare exact factory options

And does the gap provider take into account the discounts available when buying a new car

They're pretty generic when it comes to a write-off AFAIK.
I certainly don't think you should have anything to worry about.
Which GAP do you have? It shouldn't make a difference anyway. It's either RTI or vehicle replacement.

[Wills2]

Originally Posted by Novakbmw

Ahh hmm is every insurer different or do you have to declare exact factory options

And does the gap provider take into account the discounts available when buying a new car

They know the market, it's not their first rodeo but do your own research based upon your car, did you buy it new from a dealer? is it still in warranty etc...these are points to argue with if they bid you down etc....

What options do you have? These make very little difference to the second hand value (hence you pay for most of the cost when it comes to the finance agreement) But again it's a counter point to a poor valuation so do some research.

[Novakbmw]

It is vehicle replacement. Just to clarify as with so much going on at the moment I’m starting to ask myself daft questions.

Say insurer pays out x amount as an offer let’s say 20k

Vehicle replacement pays out how much ? if a new car is 40k , 20k ? Or do they find the cost of an equivalent of same age and spec say it’s 18k...and pay 18k?

And can I buy any car and make with the money ?

[JustChris]

Originally Posted by The0pportunist

Losing a car you love is like losing a family member. Sorry for your loss.

I might be wrong but I thought Gap insurance needs to be added within 90 days of purchasing the car?

Hmm not really.

[Wills2]

Originally Posted by Novakbmw

It is vehicle replacement. Just to clarify as with so much going on at the moment I’m starting to ask myself daft questions.

Say insurer pays out x amount as an offer let’s say 20k

Vehicle replacement pays out how much ? if a new car is 40k , 20k ? Or do they find the cost of an equivalent of same age and spec say it’s 18k...and pay 18k?

And can I buy any car and make with the money ?

I think you're over thinking this, you haven't really provided enough info for anyone to comment on the specifics of your case.

What is the car? What is the spec? What is the settlement from the finance company? The insurance company will pay out the market value of the car at retail the GAP will cover any difference between that and the finance owed to allow you to replace the car but that may well just put you at zero.

If you owe 20k on the car and it's worth 25k then you'll get no payment from the GAP insurance as it's not RTI but replacement. If you owe 25k but it's worth 20k then you'll get 5k from the GAP to cover the loss but that will go to the finance company.

As for buying a car with the money, unless you have a large amount of equity in the car you won't see any.

[Novakbmw]

Wills 2 that’s scary reading

Th3 policy I have is this

If within the Period of Insurance an incident occurs which results in the insured Vehicle being classed as a Total Loss by the Motor Insurer, We will in consideration of the payment of the premium pay the difference between; the Insured Value and the price of the Replacement Vehicle, Or the Early Settlement Figure owed on Your finance Agreement, whichever is the greater following a Total Loss.

If finance owed say is 25k for example insurer offers 20kb

What will replacement plus gap plus do ? As defined above ?

A replacement vehicle is that new or used in the same condition . My policy schedule says maximum cover. 25k

[Novakbmw]

So Wills 2 are you saying my replacement gap policy in the definition above where I have money to owe finance company I won’t have any spare cash paid from the gap to buy a car of my choice

[Ashm3_uk]

Originally Posted by MashinBenzin

No. To bring back a family member, I'd hand back both cars, my house, every possession and every penny, just to have a second chance at building a life with them in it. And be confident that I'd be motivated enough to make it work.

To bring back a car, I'd order another manufactured piece of metal, plastic, cow and glass.

Amen.

[NotGotABimmer23]

Originally Posted by Novakbmw

Wills 2 that’s scary reading

Th3 policy I have is this

If within the Period of Insurance an incident occurs which results in the insured Vehicle being classed as a Total Loss by the Motor Insurer, We will in consideration of the payment of the premium pay the difference between; the Insured Value and the price of the Replacement Vehicle, Or the Early Settlement Figure owed on Your finance Agreement, whichever is the greater following a Total Loss.

If finance owed say is 25k for example insurer offers 20kb

What will replacement plus gap plus do ? As defined above ?

A replacement vehicle is that new or used in the same condition . My policy schedule says maximum cover. 25k

If you owe 25k and the car is valued at 20k by the insurer then the gap will be the difference between the 20k paid by the insurer and the cost of a brand new replacement car of equivalent spec. No idea what you drive but let's say its a 320d you would be looking at something like 20k from the insurer and a further 20k from gap insurer (new 320d is 40k).

[GEP77]

GAP policies all have a maximum payout as well, although given the car is so new this shouldn't really come into it, its normally from about £20000.

Summarising what others have said and using hypothetical figures here:

Replacement (New) vehicle cost: £40000
Invoice cost of your vehicle: £35000
Insurance payout: £25000

In this case if you had RTI GAP then they would payout £10000.
If you have replacement vehicle GAP then it would payout £15000.

The amount you owe on finance is irrelevant, you can buy GAP insurance for an outright owned car if you so choose.

However it is always worth checking the small print, however based on experiences on this forum and others the process of claiming from GAP insurance is generally pretty smooth.

[Novakbmw]

Thank you good this is my understanding and a relief from my mind ..I just hope the ala who seem to be the broker the insurer used will be efficient .

The bmw is 2.5 years from new on pcp finance

A new one is circa 40k

I took out replacement gap plus .

[t5pilot]

Originally Posted by GEP77

GAP policies all have a maximum payout as well, although given the car is so new this shouldn't really come into it, its normally from about £20000.

Summarising what others have said and using hypothetical figures here:

Replacement (New) vehicle cost: £40000
Invoice cost of your vehicle: £35000
Insurance payout: £25000

In this case if you had RTI GAP then they would payout £10000.
If you have replacement vehicle GAP then it would payout £15000.

The amount you owe on finance is irrelevant, you can buy GAP insurance for an outright owned car if you so choose.

However it is always worth checking the small print, however based on experiences on this forum and others the process of claiming from GAP insurance is generally pretty smooth.

Yes, exactly this. That's why it's always worth the few extra quid for vehicle replacement GAP.
When I took mine out with ALA 2 years ago the claim limit was over £100k.
I believe on more recent policies it's been reduced to £50k.

[ZedsRedBaby]

Originally Posted by GEP77

GAP policies all have a maximum payout as well, although given the car is so new this shouldn't really come into it, its normally from about £20000.

Summarising what others have said and using hypothetical figures here:

Replacement (New) vehicle cost: £40000
Invoice cost of your vehicle: £35000
Insurance payout: £25000

In this case if you had RTI GAP then they would payout £10000.
If you have replacement vehicle GAP then it would payout £15000.

The amount you owe on finance is irrelevant, you can buy GAP insurance for an outright owned car if you so choose.

However it is always worth checking the small print, however based on experiences on this forum and others the process of claiming from GAP insurance is generally pretty smooth.

I've just realised I'm totally confused about how this works.

In your example, if there was say £30k left on finance, that would have to come out of the total payout wouldn't it? So for replacement gap you'd still only have £10k left towards a new car.

Is that right?

[1966-TR4]

Originally Posted by ZedsRedBaby

I've just realised I'm totally confused about how this works.

In your example, if there was say £30k left on finance, that would have to come out of the total payout wouldn't it? So for replacement gap you'd still only have £10k left towards a new car.

Is that right?

Yes, but hardly different to having PCP and handing the car back. Under some circumstances, the 10K in your example might be all you have spent on the car (in repayments).

[ZedsRedBaby]

Originally Posted by 1966-TR4

Yes, but hardly different to having PCP and handing the car back. Under some circumstances, the 10K in your example might be all you have spent on the car (in repayments).

Thanks. I suppose I'd always thought replacement gap meant they pay for a new car - they certainly advertise it that way.

[Vasumir]

Originally Posted by ZedsRedBaby

Thanks. I suppose I'd always thought replacement gap meant they pay for a new car - they certainly advertise it that way.

I've always found they advertised it fairly genuinely. It's always written that the value they pay out is the difference in price between your insurers payout and the price of a new car, same make &model. Obviously yes you then have to make sure your finance (if any) is paid off with that money.
It would be a bit crazy to expect them to pay off the existing finance and then give you the cash for a new car... Although that would be very nice
Whether they pay list price or not is another matter... If they do that's obviously very beneficial to you.

[1966-TR4]

Originally Posted by ZedsRedBaby

Thanks. I suppose I'd always thought replacement gap meant they pay for a new car - they certainly advertise it that way.

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.

[Novakbmw]

With anything these days getting advice or talking to forum members is so beneficial . It’s also quite apparent gap insurance is miss understood out there. I thought I understood what I was covered for but found myself confused when in claim stage

Policy replacement gap plus

Price of new bmw when I bought it was circa 45 k with options
I’m guessing with out any haggling a new version can be bought easily for 40k easy..

Finance let’s say is 22k Owens

Insurer argument sake offers 20k

Gap may pay 25k? Or will that be less ?

2k of the payout will obv go to pay the remaining debt

I also need to source a new car ASAP which will be anything for now as I need to work and travel .

[NotGotABimmer23]

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.

In reality with gap it can often put you in a massively more favorable position, as in effect you replace an asset worth 20k with 40k in cash (it's value when new).

[1966-TR4]

Originally Posted by kylemacca01

In reality with gap it can often put you in a massively more favorable position, as in effect you replace an asset worth 20k with 40k in cash (it's value when new).

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.