Huge thanks Jim, finally have my RAV4 coming this week and your video not only reassured me it was a good choice to get the GAP insurance, but saved me 11 odd quid. £101 for 4 years cover on a £50k car.
Super useful - thanks for this. Just got a VW ID7 on ordre on the recent mega deal (which I saw through you - wasnt even looking at vw ID7 as I thought it would be too much!)
Thanks for the heads up, I have covered my new car for half the price I paid for my old car, which was only slightly more expensive, which I covered through the car dealer. Well worth it for peace of mind.
Contacted ALA and used the code. Really easy to set up and the advisor was very helpful. Compared to my last GAP through a main dealer there was a huge saving! Thanks again Jim for the work you do on the channel it is invaluable when navigating the Car market.
Thanks Jim, great informative video as always. Just bought a new car and thought GAP insurance wasn't available so was pleased that you brought this update out. All sorted through your link and for a little over £150.00 I've got 3 years cover, cheap as chips for that little bit extra which I hope not to need. 👍
Hi Jim - Subscribed to your channel recently as I found it very insightful and balanced. Awaiting pick up of our Tesla Model Y soon and glad I watched this on Gap Insurance - Purchased! Thanks for the code too.
But why if a car is insured its insured it should be their liability and a write off should be covered. Insurance has become increasingly convoluted over the years. This seems like a sales pitch to me
Your insurer will pay out trade value, it won’t give you retail value nor will it contribute to your finance costs so you could have a shortfall, often sizeable. Disregard this as a sales pitch if you want, I really don’t care. I’m covered.
@@MattHadlow-wood : Let’s just use some very basic numbers to emphasise a point. You’ve purchased a vehicle for £10’000, taking out finance to cover £8000 of the purchase cost. Let’s say that to borrow that £8000 over three years, you’ll have to pay back a grand total of £9000, including interest. 12 months into ownership, someone drives into your car writing it off. The insurance company deem that your car now only has a trade value of £5000, but you still owe £8250 to the finance company. Without GAP insurance, you’re going to have pay £3250 to the finance company for a car that you no longer own. This is where GAP insurance comes in. They’ll cover the £3250 shortfall between what the insurance company pays you, and what you owe the finance company.
Ideally that should be the case but it Unfortunately isnt . A friend had a pcp on a bmw 5 series which was stolen. He owed the finance 30k where as insurance paid out market value which was 20k . Unfortunately he had to pay 10k out of his own pocket.
@@DefinitelyNotAGuru the both had return to invoice gap cover. One had his car stolen after 2 years and the other was written off after a flood damaged the engine.
Because it never should have been removed from the market in the first place; it was handled terribly. The bad actors simply needed to be controlled rather than removing the products altogether.
Hi Jim, I heard about your channel via your collaboration with Gary Does Solar and I’ve learned a lot from your content. I wonder if you might want to qualify your view of gap insurance because of the FCA’s recent report. I haven’t read it but the Times reported today that only 6% of the premiums charged were paid out in claims, implying that the product is grossly overpriced.
Hi Rob, I did a couple of videos on it actually. In short, the FCA doesn’t know which way is up (I used to be MD of a Household Insurer so know them very well). The 6% of premiums related to the countless dealerships overcharging customers and also the post covid dip (where used car values were so high that GAP was hardly being used). Instead of controlling what the sharks could charge they pulled the product from market (of which I know of a resulting suicide from a very honest broker). The more relevant stat to measure performance of a product is the percentage of valid claims that get paid out against. I paid under £200 for 3 years cover on my Tesla; I don’t ever want to use it but if I do I want the insurer to pay out. I’m paying for peace of mind primarily. I also don’t want to overpay for it. They simply needed to control commission from the bad boys but as always looked at the thing upside down and made statements that are easily misread by those who don’t understand the industry or the customer needs, like themselves for example. Look at the price the online brokers like ALA charge, often 3,4,5 times less than the main stealers - if you’re paying £800 at a dealership for a £150 product is the product at fault or the regulator for allowing it to be sold as such a ridiculous profit?. The FCA in my opinion is not fit for purpose, and I’m not the only one. They look for low hanging fruit to get big headlines rather than tackling the real problems that truly affect consumers. Their own recent changes to fair pricing on motor and household insurance have punished those who previously shopped around every year and put huge additional compliance costs on top of the whole distribution chain which also ends up on your premiums - all in the name of “consumer duty”. I could go on forever…unfortunately…
I had return to invoice GAP insurance a few years back but got it on the open market, not as part of the deal with the car broker or dealer as they were very expensive. Good job I did as the car was stolen after one year and never recovered, so got back the invoice price less finance balance, giving me a good deposit for my next car. It’s a no brainer if you are taking out any substantial finance on a car and TBH it’s a tiny amount compared to what you’re borrowing.
