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[Remedy234]

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[Midlifecrisis]

I think you are correct. Your insurance plus the gap should pay a total of £61k, up to any limit specified on the gap (might limit their payout to £40k for example) and minus any excesses. I think you would only be short in that scenario if your insurance settled for <£21k and there was a limit on your gap policy of £40k

 

[Murph7355]

https://www.moneysavingexpert.com/insurance/car-insurance/gap-insurance/

I don't finance my cars so never really understood GAP insurance...if you're with a half decent insurer you should get enough back to replace the car written off on a like for like basis (not "get me a new car" money).

Financed cars are potentially different.

What I generally don't get is why the main insurer cannot cover this way as or more cost effectively.

 

[W1NGE]

I’ve RTI / combined GAP insurance but it’s not clear to me what that means. I was maybe naively under the impression that If my car was written off that GAP would cover the difference of what the main insurance pay and the amount I paid for the car, hence Return to Invoice. I’ve since been told by some that it this isn't the case.
I’m also curious what would happen in my situation regarding the deposit I paid on the car. For instance, my car was £61k I paid £23k deposit and financed the rest. Would I lose my £23k if it was a RTI claim?

Depends on the type of GAP insurance you have. If Return to Invoice then the insurer will pay the difference between what your primary insurer funds and the original invoice for the purchase of the car. This only works in write off situations.

 

[MarkR]

I had gap insurance in the past and it was the difference between what I had paid and what the main insurer would pay for the car (which is usually the market value at the time it is written off), minus any excesses. Thankfully never had to use it, but that is what I had purchased, so had peace of mind.

That was some years ago, so I don't know what options are available these days, so worth reading the small print.

 

[W1NGE]

I had gap insurance in the past and it was the difference between what I had paid and what the main insurer would pay for the car (which is usually the market value at the time it is written off), minus any excesses. Thankfully never had to use it, but that is what I had purchased, so had peace of mind.

That was some years ago, so I don't know what options are available these days, so worth reading the small print.

2 options - market value or return to Invoice - EVs should always be return to invoice given the depreciation situation.

 

[Speuk]

Watch out for policy wording on ALA policies. They will pay the gap between what your main insurer pays out and the original purchase price you paid OR 110% of Glass Guide market price at the time you bought the car. That may sound OK but I asked them to give me the 110% figure for a preregistered 4S ST I was buying with a £36k discount. The 110% of Glass guide mumber was £19k below what I was paying. The same applied if I went for their vehicle replacement cover rather than their RTI plus cover. I'm sure it works out OK if buying a 12 month old car but for them to pay out on my all but brand new car I would have had to negotiate a 43% discount on the list price ??
I thought they had outlawed such mis selling.
I contacted the four other main Gap insurers and all confirmed they would base their pay out on the actual invoice price so needless to say I didn't buy from ALA

 

[4sCT21]

Watch out for policy wording on ALA policies. They will pay the gap between what your main insurer pays out and the original purchase price you paid OR 110% of Glass Guide market price at the time you bought the car. That may sound OK but I asked them to give me the 110% figure for a preregistered 4S ST I was buying with a £36k discount. The 110% of Glass guide mumber was £19k below what I was paying. The same applied if I went for their vehicle replacement cover rather than their RTI plus cover. I'm sure it works out OK if buying a 12 month old car but for them to pay out on my all but brand new car I would have had to negotiate a 43% discount on the list price ??
I thought they had outlawed such mis selling.
I contacted the four other main Gap insurers and all confirmed they would base their pay out on the actual invoice price so needless to say I didn't buy from ALA

I did notice the 110% statement with ALA, switched to totallossgap who pay the higher of your finance settlement and the invoice upto £75k.

 

[Remedy234]

So would I get my £23k deposit back as my cover is RTI / Combined

 

[Speuk]

I did notice the 110% statement with ALA, switched to totallossgap who pay the higher of your finance settlement and the invoice upto £75k.

Good spot, I wonder how many mis the small print. I went for one with £35k limit. I get tax relief at 45% of the depreciation x my business miles % and I always budget for depreciation so mainly looking for something to take the sting out of a total loss, particularly in the first couple of years of ownership.

 

[4sCT21]

So would I get my £23k deposit back as my cover is RTI / Combined

The policy will cover the difference between your insurers market valuation and the invoice price you supplied to the GAP insurer.

The invoice figure you supply will be minus any dealer discounts etc but prior to any part exchange / deposit. So the deposit will be covered.

In the case of vehicle replacement, it will cover the cost of a replacement vehicle to the same specification, even if it costs more (i believe).

 

[4sCT21]

Good spot, I wonder how many mis the small print. I went for one with £35k limit. I get tax relief at 45% of the depreciation x my business miles % and I always budget for depreciation so mainly looking for something to take the sting out of a total loss, particularly in the first couple of years of ownership.

I ideally just need my finance covering, beyond that I'm happy. Vehicle replacement would be better for me, given my huge discount at point of purchase, but I decided to just get RTI.

 

[Speuk]

So would I get my £23k deposit back as my cover is RTI / Combined

I don't see why you wouldn't

 

[Speuk]

I ideally just need my finance covering, beyond that I'm happy. Vehicle replacement would be better for me, given my huge discount at point of purchase, but I decided to just get RTI.

Yep same here, I'm a cheap skate so just went for RTI ??

 

[69Mach390]

I’ve RTI / combined GAP insurance but it’s not clear to me what that means. I was maybe naively under the impression that If my car was written off that GAP would cover the difference of what the main insurance pay and the amount I paid for the car, hence Return to Invoice. I’ve since been told by some that it this isn't the case.
I’m also curious what would happen in my situation regarding the deposit I paid on the car. For instance, my car was £61k I paid £23k deposit and financed the rest. Would I lose my £23k if it was a RTI claim?

Wow you called this one: https://www.taycanforum.com/forum/threads/write-off.31833/

So what’s the end result? Did you get any money from the GAP insurance?

The way I’ve always heard it, GAP only covers you if it gets totaled and you owe more than it’s worth.

IE, you owe $40k and the car is totaled and they give you $35k, you walk away with zero dollars (the bank gets the loan paid off with 35k from the insurance company and 5k from GAP).


I believe GAP also costs less the more money you put down. Either way, curious to hear the conclusion to this story since your car was totaled.

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