How does GAP insurance work?

[stusgsx]

I took out gap insurance when i bought my bike but now forgoten exactly how it works (ok i never knew but it sounded good!) Am i correct that my insurance company will give me market value and then GAP will give however much more so that i get what i paid for the bike??

[SDM]

I think you are correct in what you are thinking..................

[Lateshift]

thats bang on :)

[STEALTH52]

Here you go stu

http://personalinsure.about.com/od/policybasics/a/aa021405a_2.htm

[stusgsx]

cheers john, thats ok then hopefully it wont take too long to all go through then!

[STEALTH52]

Keep your fingers crossed mate, are you going to get the same bike again or go for something different?

[stusgsx]

i dunno mate, depends how steep my insurance goes! might go have a wonder round john pease at weekend and hav a dream!

[Mi5ter E]

good old gap cover saved me a wile back too

[STEALTH52]

i dunno mate, depends how steep my insurance goes! might go have a wonder round john pease at weekend and hav a dream!

Race rep.....Hint Hint;)

[stusgsx]

lol i do like that r1 in the race rep but its not a suzuki!

[STEALTH52]

What about the lucky strike rep?

[stusgsx]

ile hav to hav another look at that one!

[badco]

then GAP will give however much more so that i get what i paid for the bike??[/quote]


sorry if i am misunderstanding you lot but ,
GAP covers the differance between what the insurance pays out
(market value) and what you still owe on the bike
thats what your sayin right ???

















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[stusgsx]

basically i bought the bike for £6700 and now the market value is probly around £4500 if that so GAP will give me £2200 on top of the £4500 to make £6700 so i can get a new bike and try again!

Oh and john the lucky strike is £9999! dont think my insurance will take too kindly to that one! lol

[rembrandt]

saw the lucky strike bike when it was delivered and didnt think much of the paint to be honest , looked rushed and bleed through under the fine line in places , but the scheme did look good on the bike

so whats this GAP insurance then ? never heard of it

[harriebird]

stugsx, badco has made a really goood point. although you may have paid £6700 for the bike (as in the price), if you have finance say of only £6000 owing, because you paid a deposit of £700, then the GAP insurance will only cover what is owing on the finance agreeement. and if you have made say 6 months worth of payments, then the amount owing will have reduced further.

GAP insurance is basically to save you paying the finance company back if the insurance pays out less than the balance of the finance agreement.

not quite the same as covering the gap between the insurance payout and the retail value....

[racyo]

There are 2 types of GAP insurance:

Return to Invoice
Return to Finance

If you have the latter they will only pay the difference between the insurance payout and the remaining finance. If you have return to invoice they will pay out to the original invoice value (less any extras normally)

[harriebird]

nice one :clap thank you for clarifying :)

[stusgsx]

ah ile hav to check. well i only owe £2500 to finance, as long as i get 4k in my pocket then im happy cos that will be deposit on new bike

[badco]

sorry to say fella u could end up with only 2thou ,4500 bike value less 2500 to pay off finance =2000 . there is no gap to cover.I hope i am wrong and u get a good payout but dont be expecting insurance companys to play fair.