Nailit

[QUOTE]Originally posted by Noony
[B]I'm not 100% on this but doesn't GAP insurance just clear the finance in the event of a low insurance offer ??

I should know this as I also purchased this from Honda but never really understood it. Having said that, it was only

S2000 SM

Gazzer

I had exactly the same issue a month or so ago: offer took ages come come through and when it did, it was way off base. I wrote the following (edited to keep it relevant):

<<I wish to dispute the current market valuation you have used in your calculations.

I have attached the following to support my claim:

moff

I work closely with insurance companies and within other areas of the automotive industry, and my thoughts are:

To receive a new car, you must have GAP insurance. For the first year GAP insurance will mean you will usually get new for old. This is not always the case. GAP insurance, as the name suggests will provide you with the difference bewteen what your insuarance company pays you and what you owe on finance. After the first year, you will not be able to get a new car if using GAP.

Insurance companies generally use CAP or Glass to gain a valuation of your car. Glass/CAP both take into consideration the current marketplace. At the moment the used car market is doing really badly, in fact the worst it has ever been and is set to get worse. I do understand that there are cars in AutoTrader etc at given values, but these will be slightly inflated to allow for haggling?

I would appeal. Go to Honda's website and use their stock locator to find similar cars i.e. mileage, colour and use these adverts to prove that the pay out is too low.

To summarise, the insurance company does not have to give you a new car, as your car was not brand new. They should replace like for like.

Cheers

Nailit

moff,

I checked the Honda GAP insurance brochure and it seems there are 2 products:

1) Vehicle Replacement Insurance. This provides you with a new car if it is written off at any point upto a 3 year period.

2) Finance Shortfall. This will "pay the shortfall between the sum provided by your car insurer and the finance settlement on your finance agreement at time of write-off."

Perhaps Honda can only offer Vehicle Replacement Insurance for cars not on finance, i.e. cash sales? Alternatively, this might explain why I paid

Paper Lawyer

It's worth noting that Tesco give new for old for a period of 12 months on their policies provided that the insured is the first owner of the car - that's one of the reasons why I got a replacement S. I just had to pay the excess and the road tax for the new car.

moff

Nailit, the deal offered by Honda is very good. Is this part of their normal insurance policy, or is it an extra that you have to pay for?

I was referring generally to the average insurance product, not one specifically.

When I bought my S3 I also bought GAP insurance (for 3 years) and tyre insurance. My GAP policy was a new replacement car for the first year and GAP (finance shortfall) for years 2, 3. All down to individual policies.

Bloody good product to get for an S2000, especially if using as an everyday car in the winter months.

The Tesco insurance thing, with new for old is very good, sonehow doubt that Direct Line would do that... need to check though.

Nailit

When my wife and I picked up our new S2000 the Honda dealer had a checklist of items to run through before letting us out of the showroom. One of them was to offer the customer this GAP insurance product. Not having bought a new car before I had no idea what it was and ordinarily I would be very sceptical about most forms of optional insurance.

When the dealer explained to us what Vehicle Replacement GAP insurance is my wife insisted we get it (being a management accountant she knows a good deal when she sees one). For

Gazzer

Thanks chappies. Have an independant assessor on the case who values cars for Insurance Companies. He said it was just part of the game and that they were way off base.

With regard to all this Gap cover etc., insurance is such a waste of money..............until you need it!!

G

joecro

I bought GAP cover for my Porsche and the policy i have costs 1% of the purchase cost and will pay me in cash the difference between the insurance company settlement and the original purchase cost of the vehicle. This is important when you have

gaddafi

[QUOTE]Originally posted by PWE 896
[B]The principle of insurance is that you should be placed in no worse nor no better situation than you were when the claim ocurred.