GAP or RTI insurance.

dil999

Has anybody any experience of GAP or RTI (Return to Invoice) insurance.

Recently bought a new car. VW are selling this. Bottom line is in the case of a write off it pays out the difference between what your comprehensive insurance pays out and the original invoice price of the car.
So for example: if in 2 years time my 30K car is written off, the insurer pays me 15K, the value of the car at the time and VW pays me an additional 15K to bring it back to the original invoice price (hence Return to Invoice). cost is 495 once off for 3 years cover.

Anybody have any experience of this.

Liam McPoyle

I don't have any experience writing it but personal opinion is that you need to weigh up the cost vs the benefit.

I'm of the opinion that unless the car is high value - in excess of €50,000 - then it's not really worth it.

It will also depend on its depreciation over the length of the policy.

If you are going to be doing heavy mileage then obviously it will be worth alot less in 3 years than it is now but if you will be doing average mileage, then it might not lose all that much value.

It will also depend on your confidence in your own driving ability ie how likely are you to write it off?

€500 in the grand scheme of things isn't huge though so it really is a personal choice.

If it were me, is take my chances and keep my €500 but that's just me.

dil999

Business Cat wrote: »

I don't have any experience writing it but personal opinion is that you need to weigh up the cost vs the benefit.

I'm of the opinion that unless the car is high value - in excess of €50,000 - then it's not really worth it.

It will also depend on its depreciation over the length of the policy.

If you are going to be doing heavy mileage then obviously it will be worth alot less in 3 years than it is now but if you will be doing average mileage, then it might not lose all that much value.

It will also depend on your confidence in your own driving ability ie how likely are you to write it off?

€500 in the grand scheme of things isn't huge though so it really is a personal choice.

If it were me, is take my chances and keep my €500 but that's just me.

Thanks for the reply. I am veering towards what you are saying. If after 2 years I write off the car (hopefully not) this insurance would effectively get me a new car, whereas my comprehensive insurance would get me a 2 year old car. Which is what I would have if I hadn't crashed it in the first place.

I have 60 days from date of purchase to make up my mind. Again If anyone has ever purchased this or had the unfortunate circumstances to avail of it, I would appreciate any feedback.

cplwhisper

dil999 wrote: »

Thanks for the reply. I am veering towards what you are saying. If after 2 years I write off the car (hopefully not) this insurance would effectively get me a new car, whereas my comprehensive insurance would get me a 2 year old car. Which is what I would have if I hadn't crashed it in the first place.

I have 60 days from date of purchase to make up my mind. Again If anyone has ever purchased this or had the unfortunate circumstances to avail of it, I would appreciate any feedback.

********
Used to sell 'depreciation cover'/GAP as an upgrade option with insurance.

Only if you are claim off your own comp cover can you use it.

I.e... u write off you own car then it activates so you get back to invoice prices but had max of €15k

If other person is settling your car damage as a 'third party ' claim then depreciation/GAP doesn't apply

Average own-damage right-offs per year are around 10% so insurer makes alot of provide before payment needs to be handed offer.

dil999

cplwhisper wrote: »

********
Used to sell 'depreciation cover'/GAP as an upgrade option with insurance.

Only if you are claim off your own comp cover can you use it.

I.e... u write off you own car then it activates so you get back to invoice prices but had max of €15k

If other person is settling your car damage as a 'third party ' claim then depreciation/GAP doesn't apply

Average own-damage right-offs per year are around 10% so insurer makes alot of provide before payment needs to be handed offer.

Thanks. A couple of things I wasn't aware of.

cplwhisper

dil999 wrote: »

Thanks. A couple of things I wasn't aware of.

If you can copy the t&c of offer or tell me what website it's on then I'll have a glance at it if you need. It may even by my employer who underwrites that cover. They sell via some dealerships brands too

dil999

cplwhisper wrote: »

If you can copy the t&c of offer or tell me what website it's on then I'll have a glance at it if you need. It may even by my employer who underwrites that cover. They sell via some dealerships brands too

Thanks. its Volkswagen. I see a few brokers do it also, but I haven't contacted any yet.
https://www.volkswagen.ie/en/offers---finance/finance/finance-products.html
scroll down to GAP insurance.
I do have a booklet I received from them with some more detail, but I cant find it online. It doesn't mention a payout limit, and it also, as far as I can see, doesn't distinguish between a payout from your own comprehensive vs someone else's third party.