leedsunited wrote:

Be very careful, you need to also insure the gap between what your insurer will pay their valuation and what your gap provider thinks it is worth, ie insurer will only pay £30k on total loss, gap provider says it is worth 35k it is £40k to replace therefore the gap will only pay difference between £35k to £40k leaving you to fund the difference, oh and they expect you to argue with your insurer to get a higher valuation. I know all this as through experience and my GAP policy was a Land Rover product, a con at best.

MSE - I had back to invoice of the cost of the car from a Land Rover Dealer, Churchill valued the car at one value which was 5 K lower than the GAP company ie 25K and that is all they were prepared to pay out, GAP company said it was worth £30K invoice value was £35K, so a gap to the gap of £5K, GAP company told me to go back and argue that my car was worth what they said, insurance company would not budge hence a difference in the money to be returned, read the small print is all i will say.

Hi leedsunited. What did they charge you for that insurance. Getting it back to invoice (over £50000) keeps coming back at £900 for 3 years. Is that norm ?

sweetafton wrote:

Hi leedsunited. What did they charge you for that insurance. Getting it back to invoice (over £50000) keeps coming back at £900 for 3 years. Is that norm ?

The point of to invoice is taking the write off value back to invoice price up to three years depending on the max gap you pay so it could be 20k, 10 or 30k Mike

2014 Facelift Discovery

mse wrote:

The point of to invoice is taking the write off value back to invoice price up to three years depending on the max gap you pay so it could be 20k, 10 or 30k

leedsunited wrote:

mse wrote:

The point of to invoice is taking the write off value back to invoice price up to three years depending on the max gap you pay so it could be 20k, 10 or 30k

MSE yes that is the theory but in my experience and with a policy sold to me by a LR dealer it is not the reality when it comes to cock on block.

MSE - It does not give a flying fu*k if you buy it from a dealer, Boots or even your local chippie.

I think everybody is missing the point here, my GAP was back to invoice, gap insurance proports to pay the difference between what your insurance company values the car at and what you paid ie invoice, however and this is the big bit that you must all understand and clarify with your provider is how they value the difference between what you paid and what it is worth, gap providers are no different to any other insurer, they want to pay out as little as possible, therefore their valuation will be different to your insurers in the opposite direction, leaving a gap that you have to fill, oh and they expect you to do the negotiation to lift your insurers offer to as close as theirs to eleviate your own personnel contribution in the middle.

It is not a case of £50K car is written off, insurer pays £40K market value and GAP provider pops up with a cheque for £10K for the difference, GAP Insurer will argue that car is worth £45K market value leaving a diffrence of £5K between what your insurance company will give you and what the GAP insurer will pay from, ie they think its worth £45K so the difference to invoice they stump up is £5K leaving £5K for somebody else to provide ie YOU

I see that nobody from the insurance community has joined this thread to say different

leedsunited wrote:

MSE - It does not give a flying fu*k if you buy it from a dealer, Boots or even your local chippie.

I think everybody is missing the point here, my GAP was back to invoice, gap insurance proports to pay the difference between what your insurance company values the car at and what you paid ie invoice, however and this is the big bit that you must all understand and clarify with your provider is how they value the difference between what you paid and what it is worth, gap providers are no different to any other insurer, they want to pay out as little as possible, therefore their valuation will be different to your insurers in the opposite direction, leaving a gap that you have to fill, oh and they expect you to do the negotiation to lift your insurers offer to as close as theirs to eleviate your own personnel contribution in the middle.

It is not a case of £50K car is written off, insurer pays £40K market value and GAP provider pops up with a cheque for £10K for the difference, GAP Insurer will argue that car is worth £45K market value leaving a diffrence of £5K between what your insurance company will give you and what the GAP insurer will pay from, ie they think its worth £45K so the difference to invoice they stump up is £5K leaving £5K for somebody else to provide ie YOU

I see that nobody from the insurance community has joined this thread to say different

I dont think anyone is missing the point - well maybe you

I got what your saying which is why i said did you check your small print, because i suspect there was a clause in there for your particular provider (and remember each is different)

I then went on to point out you could have genuinely been miss-sold or were just taken for a mug.

There are a number of different GAP insurance products and levels of cover within those products, i asked the direct question on the online support for my GAP insurance provider and they were clear between each - which is why i went for invoice GAP.

They were very clear that, if your car is written off and the insurance company values your car at £40k, but your invoice price (therefore the price to get a like for like at the time of purchase) was £55k - and there is enough COVER in the police (eg £20k) then they will provide the cheque to you for the remaining £15k - simple.

Now whilst i havent hear of a market value one - im sure there is, your seems like you had a market value cover, so neither would it return you to the finance price outstanding to pay OR the invoice price.

I wonder if the dealer tried to screw you? Mike

2014 Facelift Discovery

have a look here - its really clear, clearer than i remember:
http://www.ala.co.uk/back-to-invoice-plus.html

Quote:

Cover features:

Available for 1 to 4 years
Pays the first £250 of your insurance excess
All named drives on the Fully Comprehensive insurance policy ·
Our policies DO NOT carry a 105-110% Glass Guide value rule. We will underwrite what ever the value you paid for your vehicle – except for negative equity
Maximum level of GAP cover available is £25,000
Pays back to your original invoice price before any deposit deduction
Doesn’t cover arrears or negative equity shown on purchase invoice
Available for cars and vans up to 3.5 tons (unladen) Example:
Example:

So what will you have to do?
Simple! The Vehicle owner has to pay the GAP.

Original cost of your vehicle: £20,000
Deposit: £2,000
Amount of loan: £18,000
18 Months later the car is stolen or is in an accident and declared a total loss.
Amount still owing to your finance company: £12,000
The insurance company pays you only: £9,000
With GAP Insurance, you will receive: £11,000

MSE - The sales blurb you have produced is exactly what i received, the reality is different and there is really
only one mug here if you beleive what somebody on the end of your insurance help line tells you is gospel.

Original cost of your vehicle: £20,000
Deposit: £2,000
Amount of loan: £18,000
18 Months later the car is stolen or is in an accident and declared a total loss.
Amount still owing to your finance company: £12,000
The insurance company pays you only: £9,000
With GAP Insurance, you will receive: £11,000 Only if both your GAP insurer & your main insurer agree on the same valuation of the total loss, if your GAP insurer thinks the car is worth £12,000 then you will only receive £9,000

Answer me two questions which are crucial to this:

1, Who values or makes a decision on what your car is worth if it is written off?

2, Who's valuation do the GAP insurers use to establish what the car is worth?

Last edited by leedsunited on Sat Aug 27 2011 10:09am. Edited 2 times in total

All the insurance companies show all low value cars as there example. But when the car is over £60000 then back to invoice is the way to go. It will cost more because most gap policy only will pay up to £25000 which would not be good enough because the value would be down to about £30000 after 3 years so a short fall of £30000. But the dealers gap will bring you back to INVOICE. Not Market value. So you will be paying about £300 a year and not £300 for the 3 years. Well this is what I have been led to believe. Or should I say sold !

sweetafton wrote:

All the insurance companies show all low value cars as there example. But when the car is over £60000 then back to invoice is the way to go. It will cost more because most gap policy only will pay up to £25000 which would not be good enough because the value would be down to about £30000 after 3 years so a short fall of £30000. But the dealers gap will bring you back to INVOICE. Not Market value. So you will be paying about £300 a year and not £300 for the 3 years. Well this is what I have been led to believe. Or should I say sold !

leedsunited wrote:

MSE - The sales blurb you have produced is exactly what i received, the reality is different and there is really
only one mug here if you beleive what somebody on the end of your insurance help line tells you is gospel.

Original cost of your vehicle: £20,000
Deposit: £2,000
Amount of loan: £18,000
18 Months later the car is stolen or is in an accident and declared a total loss.
Amount still owing to your finance company: £12,000
The insurance company pays you only: £9,000
With GAP Insurance, you will receive: £11,000 Only if both your GAP insurer & your main insurer agree on the same valuation of the total loss, if your GAP insurer thinks the car is worth £12,000 then you will only receive £9,000

Answer me two questions which are crucial to this:

1, Who values or makes a decision on what your car is worth if it is written off?

2, Who's valuation do the GAP insurers use to establish what the car is worth?

my GAP pays the difference between Invoice and what the insurance company pay ============
2010 TDV8 HSE - ooo laa laaaaaaaaa
2007 TDV8 HSE - superb car and very reliable
============
2012 - dearly departed, sadly missed.. to return in late 2013 with a new TDV8!