[Balster]

Cheers Nordberg.

[Shake n Bake]

£399 quoted by my BMW dealer, when I went back in with a lower quote online we eventually agreed £193. 3 years back to invoice value of £27,500.
They tell me that is cost price and they only did it because they were close to a target. Who knows if that's true.

I could have got cheaper online but rightly or wrongly I felt more comfortable with a big name brand and spent a little extra.

[nordberg]

Originally Posted by Shake n Bake

£399 quoted by my BMW dealer, when I went back in with a lower quote online we eventually agreed £193. 3 years back to invoice value of £27,500.
They tell me that is cost price and they only did it because they were close to a target. Who knows if that's true.

I could have got cheaper online but rightly or wrongly I felt more comfortable with a big name brand and spent a little extra.

Sounds ok as long as your happy with return to invoice...

[Balster]

Now I'm confused, BMW product or ALA?

[nordberg]

Originally Posted by Balster

Now I'm confused, BMW product or ALA?

BMW is return to invoice.

ALA is Vehicle Replacement.

ALA is cheaper.

ALA is recommended by Which and underwritten by Lloyds.

ALA offer cashback via Quidco

........I'm trying to think of more + points for BMW.........I'll post back if I do....

[BC1809]

I've been looking at this, and I like the look of a Vehicle Replacement policy, but I think there is better cover than the one from ALA.

I called them and they were very friendly and helpful, but what put me off was that they do not pay me the replacement funds, they get me a car instead. I read their policy terms and it says they can choose where it comes from too.

A whole host of other online providers do replacement cover that pays me the full replacement funds. That means I can replace the vehicle as I want, I can even get a different model if I want.

The lady at ALA did explain that I could have a cash settlement of the original invoice price as an alternative, but this does not seem the point when you buy replacement cover because the car price is likely to go up.

If I took the original invoice price back from ALA when I could get the full replacement costs from elsewhere then it could be thousands less to me.

The Lloyds thing sounds good, but when I looked at the policy it said a company called Jubilee underwrote the policy. They are a 'syndicate' at Lloyds apparently, but I am not too sure what that means really, or what significance it has.

I also looked through the companies recommended by Which and nearly all of them paid the replacement funds to me, and did not supply a car. Some may be ok with a car, but I think I would like the full funds paid to me instead. Nice to have the choice.

The other thing that worried me was that worried me in the policy terms too. it says:

If Your policy is purchased more than 21 days after the Vehicle is purchased the Underwriter has the right to adjust the claim by the preexisting depreciation between time of purchase of the Vehicle and the Cover Start Date of the policy.

I take it this means if I bought the policy 22 days after picking up the vehicle then I get a 22 day old replacement, not a new one as a settlement. As I have replacement cover with my motor insurance then I might leave it until a month after picking the car up to get the replacement gap. Other providers give me the replacement costs of a new car even if I take out the Gap 180 days after picking the car up.

As for price then the Quidco thing may be good, but ALA were also quite dear compared to the other quotes I have got. It may end up cheaper but I just don't see how their replacement cover is as good as the other ones out there.

I would still take it over the dealer product though!

[dippo]

I'm currently looking at two, which are

http://gapinsurance.co.uk/

and

https://gapinsurance123.co.uk/

Both seem similar in price, and offer you the opportunity to delay the start by up to 12 months if your standard insurance covers a replacement car in that period. I would therefore take out four year's cover, and in fact get cover for five years of ownership. ALA don't allow you to defer the start date.

Looking at 'The Beast's' car that has been written off, it makes me realise that it doesn't take that much damage on a slightly older car to make the repair unviable - airbags, xenon lights etc all make for a high replacement cost if damaged.

I know nothing about either company, and don't know anyone who's been unfortunate enough to need this insurance. I would tend to favour the '123' choice, because of the 'De Facto' rating - I'm not entirely sure what that is, but my motor insurance provider has it as well!

Does anyone know anything about either of these companies?

[nordberg]

Originally Posted by BC1809

I've been looking at this, and I like the look of a Vehicle Replacement policy, but I think there is better cover than the one from ALA.

I called them and they were very friendly and helpful, but what put me off was that they do not pay me the replacement funds, they get me a car instead. I read their policy terms and it says they can choose where it comes from too.

A whole host of other online providers do replacement cover that pays me the full replacement funds. That means I can replace the vehicle as I want, I can even get a different model if I want.

The lady at ALA did explain that I could have a cash settlement of the original invoice price as an alternative, but this does not seem the point when you buy replacement cover because the car price is likely to go up.

If I took the original invoice price back from ALA when I could get the full replacement costs from elsewhere then it could be thousands less to me.

The Lloyds thing sounds good, but when I looked at the policy it said a company called Jubilee underwrote the policy. They are a 'syndicate' at Lloyds apparently, but I am not too sure what that means really, or what significance it has.

I also looked through the companies recommended by Which and nearly all of them paid the replacement funds to me, and did not supply a car. Some may be ok with a car, but I think I would like the full funds paid to me instead. Nice to have the choice.

The other thing that worried me was that worried me in the policy terms too. it says:

If Your policy is purchased more than 21 days after the Vehicle is purchased the Underwriter has the right to adjust the claim by the preexisting depreciation between time of purchase of the Vehicle and the Cover Start Date of the policy.

I take it this means if I bought the policy 22 days after picking up the vehicle then I get a 22 day old replacement, not a new one as a settlement. As I have replacement cover with my motor insurance then I might leave it until a month after picking the car up to get the replacement gap. Other providers give me the replacement costs of a new car even if I take out the Gap 180 days after picking the car up.

As for price then the Quidco thing may be good, but ALA were also quite dear compared to the other quotes I have got. It may end up cheaper but I just don't see how their replacement cover is as good as the other ones out there.

I would still take it over the dealer product though!

That's very interesting. I've just been speaking with ALA myself and you're quite correct. When I spoke to them initially, it's not the answer I was given.

Who have you gone with instead?

[BC1809]

Originally Posted by dippo

I'm currently looking at two, which are

http://gapinsurance.co.uk/

and

https://gapinsurance123.co.uk/

Both seem similar in price, and offer you the opportunity to delay the start by up to 12 months if your standard insurance covers a replacement car in that period. I would therefore take out four year's cover, and in fact get cover for five years of ownership. ALA don't allow you to defer the start date.

Looking at 'The Beast's' car that has been written off, it makes me realise that it doesn't take that much damage on a slightly older car to make the repair unviable - airbags, xenon lights etc all make for a high replacement cost if damaged.

I know nothing about either company, and don't know anyone who's been unfortunate enough to need this insurance. I would tend to favour the '123' choice, because of the 'De Facto' rating - I'm not entirely sure what that is, but my motor insurance provider has it as well!

Does anyone know anything about either of these companies?

I have spoken to pretty much all of the companies on the Which page. Interestingly 123 also run the Easy Gap and Shortfall websites too (11 Defaqto 5 Star ratings between them apparently). They gave me comparisons between the three. They can be slightly different in price but very helpful in comparing them all. They do 5 year cover which I might consider.

Gapinsurance.co.uk were good too, as were car2cover and direct gap. All got good defaqto ratings

[BC1809]

Originally Posted by nordberg

That's very interesting. I've just been speaking with ALA myself and you're quite correct. When I spoke to them initially, it's not the answer I was given.

Who have you gone with instead?

Have not made my mind up really, there seems very little between most of them (re my other answer). They seem to use similar underwriters too. Guess any of them should be good.

Disregarded ALA because it just does not look at good as the others for replacement.

I am swayed to a five year policy as they all can be transferred, so that may count gapinsurance.co.uk out

[Balster]

I signed up with ALA on a 3 year VRI policy.

[nordberg]

Originally Posted by BC1809

Have not made my mind up really, there seems very little between most of them (re my other answer). They seem to use similar underwriters too. Guess any of them should be good.

Discounted ALA because it just does not look at good as the others for replacement.

I am swayed to a five year policy as they all can be transferred, so that my count gapinsurance.co.uk out

Are you saying you've found a provider who will let you spend the VRI figure on any car you want?

[psyxologos]

Originally Posted by dippo

https://gapinsurance123.co.uk/


Does anyone know anything about either of these companies?

I am with this one. I bought the cover for the same reasons you favor them.

[BC1809]

Originally Posted by nordberg

Are you saying you've found a provider who will let you spend the VRI figure on any car you want?

Yes, I think all the ones I tried (except ALA) would pay me the funds and let me replace the vehicle as I wanted.

[hajmuntz]

Similar story. I bought my car on 31 Dec. Researched dealers that had a Jan to Dec financial year. Got a sub 200 deal on gap - as well as superb deal on a 5 month 520 lux tourer.

Originally Posted by Shake n Bake

£399 quoted by my BMW dealer, when I went back in with a lower quote online we eventually agreed £193. 3 years back to invoice value of £27,500.
They tell me that is cost price and they only did it because they were close to a target. Who knows if that's true.

I could have got cheaper online but rightly or wrongly I felt more comfortable with a big name brand and spent a little extra.

[accordRE]

With Vehicle Replacement insurance, say the car is new and it's got finance outstanding on it (eg List price 33k, Total Payable 37K), and the insurers offer 30k, will VRC cover the gap to 37k and will they leave me in a position where I am able to put down a similar deposit on a new car to what I originally put down or is the payment just to 37k?

[nordberg]

Originally Posted by BC1809

Yes, I think all the ones I tried (except ALA) would pay me the funds and let me replace the vehicle as I wanted.

I think, in that scenario, you'll find the figure they pay you will be the invoice value - not the replacement value.

[m@rk]

Originally Posted by accordRE

With Vehicle Replacement insurance, say the car is new and it's got finance outstanding on it (eg List price 33k, Total Payable 37K), and the insurers offer 30k, will VRC cover the gap to 37k and will they leave me in a position where I am able to put down a similar deposit on a new car to what I originally put down or is the payment just to 37k?

This is going to be different depending on if you have the car on finance or not (excluding personal loans).

Assuming you do then in the event of a total loss, the finance company will be looking to recover whatever the current settlement figure is on the finance agreement at the time. This may be a different amount to the replacement cost of the vehicle

They will not let you source a new vehicle yourself even if it is a like for like car. You have to pay off the outstanding finance and then (if you want) take out a new finance agreement

So if you have vehicle replacement GAP insurance, yes you will get a new car on your drive but you will still have to find the cash to settle the finance.

This is why on our cars, I went for Return To Invoice GAP insurance because at no point will there be a scenario where the amount owed to the finance company is more than the invoice price of the car

[accordRE]

Thanks Mark, I managed to work it out and RTI + was best for me.

[Jocky Wilson]

Am I right in saying that if I've just bought a new BMW and I've taken out my insurance with BMW, then I don't need GAP insurance for the first year from a 3rd party as you get a new car as part of the deal with BMW if it is written off during the first 12 months?

[Piers]

Originally Posted by Jocky Wilson

Am I right in saying that if I've just bought a new BMW and I've taken out my insurance with BMW, then I don't need GAP insurance for the first year from a 3rd party as you get a new car as part of the deal with BMW if it is written off during the first 12 months?

Correct in general, but check with your insurer to confirm. Actually I keep meaning to do this as well!!

[m@rk]

Originally Posted by Jocky Wilson

Am I right in saying that if I've just bought a new BMW and I've taken out my insurance with BMW, then I don't need GAP insurance for the first year from a 3rd party as you get a new car as part of the deal with BMW if it is written off during the first 12 months?

The only thing to watch out for is that most GAP providers stipulate that you must take out the GAP insurance within 3 or 4 months of purchasing the vehicle.

So whilst you may not need it in your case for the first year, you would not then be able to purchase GAP insurance at a later date