GAP Insurance

[Jerez]

Was wondering if you guys a thing called GAP Insurance. I think you may call it Shortfall insurance.

It's the difference between what's owed to the bank and the book of the car.

Now , I know that the saleman will sell you a policy but the question is- are there independent companies who do the Gap , as I've saved over 70% by choosing an independent provider .

 

[zaleonardz]

Usually credit shortfalll is provided by the financial institution financing the vehicle..

 

[MaX]

My Shortfall Cover is included in my comprehensive vehicle insurance with Santam. Its an add-on you can select. Comes to like R40pm for R60k i think.

 

[Spy007]

mine is added to my insurance.

 

[Jerez]

Usually credit shortfalll is provided by the financial institution financing the vehicle..

That's what I thought.
Paid £499 for shortfall direct from the dealer in 2012. Then in 2013 I seached the interweb for the same thing and found that there are independent companies who do it as we'll at £180

It's worth checking with various insurance companies if they provide such a service and saves the consumer from being skanked by the dealer for shortfall, tyre and scratch and dent insurance which my independent is offering me at the mo.

Sometimes we take it for granted that we cat get such a cover from anyone else but the dealer who has a healthy commission added on.

 

[m0lt3n]

guys, do you actually take this cover? I was also offered this by the dealer/financier as well as the insurance but decided against it.

I am surprised to see it here...have anyone needed it yet? with a car insured at retail value.

I only see this applicable if you
-had no deposit
-took financing over a longer period than 5 years
-total car within first 6 months of ownership (and even then, it wont be a big loss)

What am I missing?

 

[Jerez]

guys, do you actually take this cover? I was also offered this by the dealer/financier as well as the insurance but decided against it.

I am surprised to see it here...have anyone needed it yet? with a car insured at retail value.

I only see this applicable if you
-had no deposit
-took financing over a longer period than 5 years
-total car within first 6 months of ownership (and even then, it wont be a big loss)

What am I missing?

I should have specified that the cover is called "back to invoice"

I too was a sceptic until I had to make a claim.so my insurance paid the book on the car which settled the finance and a bit of equity back in my pocket.
So let's say the car was bought at £21500 and the finance was settled at £18000.
I called the GAP underwriters and was sent a cheque for the difference between book and and invoice.
You just can't lose

 

[Sabretooth tiger]

mine is added to my insurance.

same here. cost me a lot cheaper

 

[MikeR]

:thumbdo: Never taken it.

 

[Lee335]

Go through your insurance , much cheaper to add the Top Up cover

 

[Sportpack]

guys, do you actually take this cover? I was also offered this by the dealer/financier as well as the insurance but decided against it.

I am surprised to see it here...have anyone needed it yet? with a car insured at retail value.

I only see this applicable if you
-had no deposit
-took financing over a longer period than 5 years
-total car within first 6 months of ownership (and even then, it wont be a big loss)

What am I missing?

I should have specified that the cover is called "back to invoice"

I too was a sceptic until I had to make a claim.so my insurance paid the book on the car which settled the finance and a bit of equity back in my pocket.
So let's say the car was bought at £21500 and the finance was settled at £18000.
I called the GAP underwriters and was sent a cheque for the difference between book and and invoice.
You just can't lose

In the UK you have the benefit of the FCA and TCF actually working. We have a National Consumer Commision here with more bark than bite. TCF is still some way off for us, even though we have a regulatory framework for it, but the companies will still try to short-change SA consumers, meaning that sometimes, because of contractual loopholes, we do lose

 

[m0lt3n]

in other words,
example.. I buy my car now for 200k.

1 year from now I total the car... with retail being 100k then, while I still owe 120k.
will Gap cover pay out 20k, or 100k to take me back to original invoice?

If its 20k like I understand it I dont see it being worth it.
I recentlly bought a car and was faced with this option...repeatedly. everyone pushes it, thats why I am now pushing for clarity :ty:

 

[Jerez]

in other words,
example.. I buy my car now for 200k.

1 year from now I total the car... with retail being 100k then, while I still owe 120k.
will Gap cover pay out 20k, or 100k to take me back to original invoice?

If its 20k like I understand it I dont see it being worth it.
I recentlly bought a car and was faced with this option...repeatedly. everyone pushes it, thats why I am now pushing for clarity :ty:

Ok, your insurance will give you a settlement based on the value a year down the line - so let's say they give you R80k but you're still owning R120k to the bank.
The shortfall is R40k which you're obligated to pay, but you can't .
GAP, to the rescue . GAP guys will ask for the insurances R80k invoice and your original purchase invoice .
They will then send you a cheque for the R120k... Without teaching you guys to suck eggs- you take R40k and pay balance of finance off.
And R80k is yours to put down on another car.
Guys, you have to specify " back to invoice " plan

I'm sure it's available from independent companies.
There are also add ons, like dent an scratch cover - alloy wheel cover - excess cover( 12 month cover which will pay back your excess) about £30 for 12mnths only