GAP insurance

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08-02-2006, 07:05 AM

#11

535dMAN

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Does anyone know the difference between GAP Insurance and RTI (return to invoice) Insurance??

Cheers

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08-02-2006, 07:45 AM

#12

w8pmc

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Originally Posted by needforspeed' post='318045' date='Aug 2 2006, 06:23 AM

Thanks - I have found a number of companies who offer independant GAP insurance for much less than BMW - and I am tempted to go for it.

But my problem is this - I have a 4 year lease purchase deal with a final payment which SHOULD be equivalent to the value of my car at that stage. In simple terms I should be paying the loan off such that the settlement costs will generally be in line with the trade in value of the car at any given time.

So I will only have a shortfall if my insurer pays out LESS than the trade in value of my car. I can understand that they would wish to pay as little as possible, but how can they get away with paying out less than the TRADE IN value given that this is the lowest estimate of a cars worth?

Shop around & get BMW to match it (they will).

I was offered "return to invoice" over 3 years for ?750 (half price they told me) from BMW then did some searching & found a company willing to do the same "return to invoice" for ?250 (albeit only over 2yrs but i won't be keeping the car longer than 2yrs). I printed the quote off & took it to the dealer when i collected my car & they matched the price & term exactly through BMW. This goes to show the huge margin they must have, as the list was supposed to be near ?1500 :thumbsdown:

So any shortfall between the day i collected the car & 3yrs down the track i'm guaranteed to get ?59K back for my car being a combo of my regular insurance payout & the GAP insurance payout. Given the values involved & expected depreciation over 2 years i felt i'd be foolish not to take the product.

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08-02-2006, 07:47 AM

#13

w8pmc

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Quote:

Originally Posted by 535dMAN' post='318118' date='Aug 2 2006, 10:05 AM

Does anyone know the difference between GAP Insurance and RTI (return to invoice) Insurance??

Cheers

RTI is basically the highest level of GAP insurance. Some products take retail values, some CAP values but RTI means if you paid ?40K then you get ?40K back between your regular insurance payout & the GAP payout. Some RTI have an upper limit of ?17500 but a couple are true RTI with no limits.

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