Brand New Car Insurance Value

K

KeithJ

Active member
 Edinburgh
Obviously insuring a new car throws up a bit of a problem when trying to get the best deal. When I was on the phone to Admiral they say that any claims will be paid at market value. When you drive your Z4 off the forecourt and it then goes from brand new to used after 1 mile in to its new life the value drastically changes.

Had a look at a rough guide on Glasses to how much the Z4 is worth which is about 24-26k. Now since Admiral and I assume others only pay out to that amount, does that technically mean thats what the car is worth?

Would it have any implications on the GAP that you have insured to that amount?

Difference in price for me is £70 from the invoice price to the used price.

Any one got any advice, trawled through google to get an answer but no luck!
 
Do you have back to invoice Gap cover? That would be the amount insured throughout the term of the gap cover.
 
When I priced my insurance ( was just out of interest ) I put 26k. Broker I spoken with said it doesn't make much difference as the ins usually just go buy 10-15, 20-25,25-30 etc so anything Inbetween is just classed similar.

Out of interest how much are they quoting ? I done gocompare and admiral have tried calling me 3x already since lol :/


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I got quoted 1000 with admiral. Prob due my age :) insure insured via business policy anyways was just curios


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lol try having a 35i in manchester, at 41 years of age with 12 years NCB its way over a grand. Can't wait to move!
 
Just to be safe, in the first year of ownership I always put the full list price. That way, if the insurer replaces a write-off under 1 year old with a brand new car (not sure how many insurers still do this) they are aware of how much they might need to pay out. Normally doesn't affect the premium anyway.

Best quote I can get at the moment for myself (26) as main driver and my girlfriend (25) as a named driver is £455 from Privilidge. Which I think is pretty decent.
 
AFAIK gap insurance is really intended to cover any shortfall between insurance payout (at market value) and outstanding finance isn't it, otherwise whats the gap???
 
lacroupade said:
AFAIK gap insurance is really intended to cover any shortfall between insurance payout (at market value) and outstanding finance isn't it, otherwise whats the gap???
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Exactly.

You buy the car in 2010 for £20k
In 2012 some idiot hits you and writes it off
Your insurance pays out £12k current value
GAP (RTI) covers the £8k to return the value to the invoice amount you paid when you purchased the car..

Same things for finance etc..
 
Yes but you have to make sure how much they will pay out to take you back to invoice value, they still cap it up to a certain amount......
 
Nickm said:
Yes but you have to make sure how much they will pay out to take you back to invoice value, they still cap it up to a certain amount......
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Yes indeed - although I find it doesnt seem to increase the policies too much..

Most online Gap providers are offering 4 years cover. Its relatively easy to work out the depreciation over that time and figure out a worst case scenario as to what the insurance company will pay out.. Then you can be sure to select the right claim limit :)
 
bluestreak56 said:
lacroupade said:
AFAIK gap insurance is really intended to cover any shortfall between insurance payout (at market value) and outstanding finance isn't it, otherwise whats the gap???
Click to expand...

Exactly.

You buy the car in 2010 for £20k
In 2012 some idiot hits you and writes it off
Your insurance pays out £12k current value
GAP (RTI) covers the £8k to return the value to the invoice amount you paid when you purchased the car..

Same things for finance etc..
Click to expand...


Umm not quite, or the GAP insurance would be almost as costly as your main insurance if you think about it.

It actually covers two scenarios that I know about:

1. FINANCE GAP - covers the difference between the market value paid out by normal insurance and any residual finance balance that this sum fails to repay.

2. REPLACEMENT GAP - sometimes the 'market value' and the actual cost of replacing it like for like (e.g. a 2 year old car for a 2 year old write-off) are also a bit adrift, especially if its a specialist vehicle. So the GAP will cover the extra bit you might have to pay to get a replacement in the real world (as opposed to the insurers world!).

I'm not aware of 'new for old' GAP insurance because its cost ought to be prohibitive...in any event, some decent insurers will replace a new vehicle write off with another new vehicle within a certain period after you bought it - I don't think it applies for very long though. Direct Line certainly do so.
 
lacroupade said:
Umm not quite, or the GAP insurance would be almost as costly as your main insurance if you think about it.

It actually covers two scenarios that I know about:

1. FINANCE GAP - covers the difference between the market value paid out by normal insurance and any residual finance balance that this sum fails to repay.

2. REPLACEMENT GAP - sometimes the 'market value' and the actual cost of replacing it like for like (e.g. a 2 year old car for a 2 year old write-off) are also a bit adrift, especially if its a specialist vehicle. So the GAP will cover the extra bit you might have to pay to get a replacement in the real world (as opposed to the insurers world!).

I'm not aware of 'new for old' GAP insurance because its cost ought to be prohibitive...in any event, some decent insurers will replace a new vehicle write off with another new vehicle within a certain period after you bought it - I don't think it applies for very long though. Direct Line certainly do so.
Click to expand...

I agree with you on both accounts but what I was referring to is a 3rd option:

3. RETURN TO INVOICE GAP - This is the best protection for both new and used car purchasers. Available to customers that have purchased with cash, using finance, placing the vehicle under contract hire or lease agreements. Return to Invoice protection pays the difference between the total loss (through an accident resulting in an insurance write-off, or a theft resulting in loss of vehicle) depreciated value of the vehicle, and the original price paid for the vehicle. In other words, with Return to Invoice Insurance (RTI) you can be sure you will receive the full purchase value (amount stated on the invoice) back in the event of a complete vehicle loss.
 
I always wondered about return to invoice, what happens if you crash your car and you are at fault, surely it wouldnt pay out?
 
KeithJ said:
I always wondered about return to invoice, what happens if you crash your car and you are at fault, surely it wouldnt pay out?
Click to expand...

Good question - I havnt researched it enough, but will be buying some in the next few weeks so will let you know!
 
bluestreak56 said:
KeithJ said:
I always wondered about return to invoice, what happens if you crash your car and you are at fault, surely it wouldnt pay out?
Click to expand...

Good question - I havnt researched it enough, but will be buying some in the next few weeks so will let you know!
Click to expand...


I'd be interested to see how much it costs and what restrictions there are. Seems an unnecessary cost over and above traditional GAP insurance because its covering something thats not actually a loss per se.....I mean if you get back to replacement cost with a combination of existing insurance and traditional GAP you can replace the car like for like can't you? This would be effectively 'new for old' cover so by definition is going to be costly. But lets see what you find. :thumbsup:
 
The gap insurance I got on the zed is RTO and was included via dealer discount on my finance, never read the the key facts yet


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