Dynamic Turtle Posted February 19, 2015 Posted February 19, 2015 Just had a call from Nissan Finance re the my new Nismo, trying to sell me some sort of additional insurance policy to cover the risk of having a CatD write off. I have no idea what this kind of policy covers, or whether it’s necessary on top of the general car insurance. They quoted me £430 for three years of cover (basically the life of the PCP deal). What the hell is this stuff and why do I need it? Has anyone here ever used it? Is it worthwhile? Can it be found cheaper elsewhere? Thanks, DT Quote
WhackyWill Posted February 19, 2015 Posted February 19, 2015 There was a thread on here recently about it. Basically its the difference between what you owe the finance company and what the insurance company will pay you out on a write off. It covers the difference, could be quiet a few grand.. Quote
Neilp Posted February 19, 2015 Posted February 19, 2015 Return to invoice ensure thats any monies paid is returned to you in full within the first 3 years if written off. Pretty decent cover however you can get it online for much less. Quote
ZMANALEX Posted February 19, 2015 Posted February 19, 2015 Return to Invoice and GAP insurance are entirely different insurance cover IMHO. Quote
Neilp Posted February 19, 2015 Posted February 19, 2015 http://www.which.co.uk/money/insurance/guides/gap-insurance/return-to-invoice-gap-insurance-review/ Quote
Ekona Posted February 19, 2015 Posted February 19, 2015 Put it this way, if you're getting the car on finance and it costs £30K, then as you drive out the door you owe £35K. Two months later having driven 2000 miles you write the car off. Settlement figure is £25K, you still owe £33K on the car. Can you afford the £8K difference? If you can, then you don't need GAP. If you can't, then you do. I had it with the Zed and the 911, but I certainly didn't with the 645. Depends on the exact figures involved: Larger deposits can negate the need for GAP. 1 Quote
brillomaster Posted February 19, 2015 Posted February 19, 2015 ^ in that example, would GAP insurance cover you back up to the £30K sales value or would it cover the full £33K you still owe the finance company? Quote
Ekona Posted February 19, 2015 Posted February 19, 2015 Depends on the type of product you buy. Some are return to invoice, some cover the whole lot. I believe the Nissan one covers everything, as that's what I went for! £450 is expensive though: You should be able to pay half that with a third party for equal cover. Whether you'd be prepared with the ballache that goes with it is up to you: Personally, I usually just pay the extra and go with the OEM-preferred choice. Quote
mouthwash Posted February 19, 2015 Posted February 19, 2015 We opted for this type of insurance with my girlfriend's Mini, it seemed like a smart choice because in the grand scheme of things I'd rather lose £300 than £3000. Quote
mouthwash Posted February 19, 2015 Posted February 19, 2015 Yeah, it was direct with Mini as I couldn't be bothered with the hassle of setting up something else to save a few quid. 1 Quote
Grundy Posted February 19, 2015 Posted February 19, 2015 Look at your two, this is like a little bromance going on following each other round on threads 1 Quote
mouthwash Posted February 19, 2015 Posted February 19, 2015 Are you feeling a little jealous today Grundy? Don't worry, you haven't been forgotten. 2 Quote
AliveBoy Posted February 19, 2015 Posted February 19, 2015 Poor grundy, no more cosmis z friends meet ups in the woods (It used to be BGW friends meet ups in the woods!! :rant: :angry: ) Now it will be mini finance friends meet ups in the woods 2 Quote
Dynamic Turtle Posted February 19, 2015 Author Posted February 19, 2015 OK thanks for the explanation guys, much appreciated as always. I didn't realise this was relatively similar to gap insurance and yes I guess it does make sense given the high probability that I will have a serious accident at some point in the next three years. I'm also guessing any shortfall is relatively limited in the first few months but then accelerates as time goes on (currently £26.3k vs £29k invoice)? £450 appears to be more than double most of the other provviders out there but I appreciate that there will be certain administrative efficiencies choosing the nissan deal. Quote
Ekona Posted February 19, 2015 Posted February 19, 2015 Shortfall is usually bigger initially, and then will decline the further on you go. That's why most GAP only covers you up to three years, and if you have a finance term over that it'll only cover the first three years. Quote
AliveBoy Posted February 19, 2015 Posted February 19, 2015 Honestly, having been in the situation, I REALLY wish I'd taken it out. If your car gets written off, the finance company want their money the same day as the insurance company give them their portion. I was lucky that my dad could pay the extra and I could pay him back over time. Quote
Dynamic Turtle Posted February 19, 2015 Author Posted February 19, 2015 Yes I've read quite a few horror stories and cautionary tales from non-GAPers. Problem is all the non-Nissan quotes are £130-150. Is the Nissan policy really worth a £300 premium? Quote
Ekona Posted February 19, 2015 Posted February 19, 2015 Depends. If it takes you 12 hours of arseache on the phone and letters and stress getting it sorted just after you've lost your P&J, is that worth £300 to you? It is to me, but I have a very low arseache tolerance 1 Quote
gumpy000 Posted February 19, 2015 Posted February 19, 2015 Agree with above but try n get that lower we charge 349! And you could see we were better than where u bought from;) 2 Quote
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