If there was a difference between the value of the car and the amount owing on his finance, he would have to pay the difference. That's is the only time when it is worth having GAP.iamdabe said:Hrm, well thanks for the info Sarah, I do wonder about how my friend ended up in the position where he still had to pay of his car after it was stolen, there was a £3,000 shortfall. maybe he should have haggled with the insurance a bit more...
There are different types of GAP insurance. You can get a cheaper one that clears outstanding finance. You can also gets one that pays out the difference between your insurance payout and the price of a brand new car, enabling you to then purchase a new car. You can also get a back-to-invoice policy to reimburse you upto what you paid, not ideal with the VAT rate increasing.deks36 said:i may misunderstand the gap policy but i believe it will only cover the difference between market value and whats outstanding on finance ( not sure how it works if you pay cash)
friend of mine just had to cliam on his gap he thought he was in for a windful got absolutely nothing
just finance paid off