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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.

  • Author
  • #66169 Reply
    – none –

    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

    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
    – none –

    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

    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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