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What Gap Insurance will I need on a PCP

Home Forums Car finance What Gap Insurance will I need on a PCP

This topic contains 3 replies, has 2 voices, and was last updated by Stuart Masson Stuart Masson 4 years, 3 months ago.

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  • #66169 Reply
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    – none –
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    Hi There

    I am totally confused as which GAP insurance to buy? I brought from The Car Shop a used Ford Fiesta for £8375 and paid £200 deposit and put my car in which they gave me £1100. I took this over a 3 year period on a PCP. They said I had to have GAP insurance but theirs was £350.00 for 3 years which I felt was quite steep as I have had a look around for other policies. Thing is there are so many? Which one do I choose? There seems to be 3 options but which one is best for me? I think at the end of the 3 years I will give the car back and get another on PCP. I have heard so may horror stories about GAP insurance not covering in the event of loss of car a and as a single mum I don’t want to be in this position? Can you help and advise me please?

  • #66171 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    No, you absolutely do not have to have GAP insurance. Anyone suggesting that you are required to take out GAP insurance as part of a PCP is lying and a salesperson doing so would be crucified by the FCA.

    GAP is an optional insurance, which is usually sold by dealers (because they get a big, fat commission on it) or available from many providers on the internet.

    The Total Amount Payable on your PCP is probably going to be quite a lot more than the £8,375 price of the car, so you would want to make sure that your GAP policy covers you for finance shortfall (ie – if your finance settlement is higher than your car’s write-off value).

  • #66215 Reply
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    – none –
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    Thank you for reply and your help.
    Car was brought for £8474 and I put down as deposit £1300, leaving balance at £7174.
    I took this on a PCP deal @ 35 mthly repayments until a final payment of £5699 to repay the full balance of £9,637.76. I am not going to be paying for the car as I will swap it out again for another model after 3 years. But there are 3 options of GAP insurance and I am confused of which one I should be taking out?
    Can you advise? Many thanks :-)

  • #66229 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Whichever provides the level of cover you are most likely to require. We don’t advise on which types of insurance are most suitable – that’s the job of a Business Manager or someone regulated by the FCA.

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