PCL Gap insurance

Smee · 09-13-2017, 10:09 AM

hello

do i need GAP Insurance with PCL?

im trying to work out if the car got written off within a few months would the insurance company have to cover the cost of remaining balance on lease?

cheers
Lee

robbiep · 09-13-2017, 10:45 AM

The insurance company would be responsible for the market value at the time.

You would be responsible for any gap between that and the outstanding balance.

DB118D · 09-13-2017, 11:06 AM

For the sake of £80-100, would it not give peace of mind?

AlwynMike · 09-15-2017, 07:07 AM

Most definitely.

Pistonheads thread about an S5 lease that got stolen a couple of weeks into "ownership". The GAP paid the difference between payout and "value" - to the Owner (VW Financial Services) but the chap who had the lease was down his deposit - some £2500 IIRC.
As he said - didn't think about it before, but on his replacement, he'll make sure that his deposit is covered.

999rigger · 09-15-2017, 07:25 AM

The insurance company will pay out the value of the car, not the value of the finance. Its like most things, you can get away without it but if something happened you would be out of pocket.

stu14t · 09-15-2017, 03:22 PM

Just done it for my new car. My insurance will pay out and replace the car if it's less than a year old but I don't know about how that works with a lease car, better check. I have deferred my GAP for a year and it kicks in for the remaining term and it's for replacement, not invoice. Make sure your sum is big enough to cover that maximum gap too.

Not that it will lease cars but some are now insuring up to £2500 of negative equity, if you carried some over from your last PCP

09-13-2017, 10:09 AM	#1
Smee Colonel 505 Rep 2,152 Posts Drives: BMW M4 F83 Join Date: Aug 2016 Location: Norfolk iTrader: (0)	PCL Gap insurance hello do i need GAP Insurance with PCL? im trying to work out if the car got written off within a few months would the insurance company have to cover the cost of remaining balance on lease? cheers Lee __________________ Current: BMW M4 F83 - Mods : Pedal Covers, LCI Stereo facia Retrofit and Carbon Rear corner covers Old: F32 435d M Sport - Mods : HR Sport Springs, 20" Veemann V-FS23 in Gun Metal, M Performance Body Kit, Pedal Covers, Eurspec CF Mirror Caps, More-BHP remap 364 BHP 741 NM, M4 Under Chassis Brace, 15mm Rear ARB, 8.8" Screen Retrofit and LCI Stereo facia Retrofit
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09-13-2017, 10:45 AM	#2
robbiep Brigadier General 1983 Rep 3,216 Posts Drives: VW e-Golf ! Join Date: Dec 2013 Location: North Wales, UK iTrader: (0)	The insurance company would be responsible for the market value at the time. You would be responsible for any gap between that and the outstanding balance.
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09-13-2017, 11:06 AM	#3
DB118D Lieutenant Colonel 1026 Rep 1,671 Posts Drives: 118d Sport Join Date: Oct 2014 Location: Glasgow iTrader: (0)	For the sake of £80-100, would it not give peace of mind?
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09-15-2017, 07:07 AM	#4
AlwynMike Lieutenant Colonel 337 Rep 1,660 Posts Drives: F36 440i GC. Join Date: Sep 2010 Location: Lincolnshire Flatlands iTrader: (1)	Most definitely. Pistonheads thread about an S5 lease that got stolen a couple of weeks into "ownership". The GAP paid the difference between payout and "value" - to the Owner (VW Financial Services) but the chap who had the lease was down his deposit - some £2500 IIRC. As he said - didn't think about it before, but on his replacement, he'll make sure that his deposit is covered.
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09-15-2017, 07:25 AM	#5
999rigger First Lieutenant 88 Rep 314 Posts Drives: F33 4 Series Convertible Join Date: Sep 2016 Location: Sheffield iTrader: (0)	The insurance company will pay out the value of the car, not the value of the finance. Its like most things, you can get away without it but if something happened you would be out of pocket.
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09-15-2017, 03:22 PM	#6
stu14t Major 451 Rep 1,201 Posts Drives: 330i MSport Pro Join Date: Mar 2013 Location: Scotland iTrader: (0)	Just done it for my new car. My insurance will pay out and replace the car if it's less than a year old but I don't know about how that works with a lease car, better check. I have deferred my GAP for a year and it kicks in for the remaining term and it's for replacement, not invoice. Make sure your sum is big enough to cover that maximum gap too. Not that it will lease cars but some are now insuring up to £2500 of negative equity, if you carried some over from your last PCP __________________ Current - 2021 G20 330i M Sport+ Gone - 2017 F30 335d M Sport + in San Marino Blue Gone - 2015 F30 LCI 320d M Sport+ Step Auto Gone - 2012 F30 320 ED Gone - 2011 E87 118d
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