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Thoughts on this please:

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Ford Insure Invoice GAP






Ford Insure Invoice GAP covers the difference between your motor
insurance settlement and the original price paid for the vehicle
including all factory-fitted accessories and any discount given, but
excluding other extras, up to the net invoice price of your vehicle*.
Cover is available on all Fords, whether you paid cash or financed your
car.



*subject to terms and conditions

Watchdog last night mentioned it and said be wary. Apparently some companies pay only the difference between the market value at the time of purchase and your insurance payout.

If you buy secondhand I can understand that, however a new vehicle should be of the value you pay.

Ford says "up to the net invoice price of your vehicle*", so what does that actually mean?

Any lawyers out there?

In the Terms & Conditions is:

'Market Value' means the value confirmed by the Administrator of the
Insured Vehicle (excluding contents) as at the Date of Loss. The
Administrator will refer to Glass's Guide Retail value and any assessors
report relating to modifications made on the Insured Vehicle to assess
the value.

I read that this is used by your insurance company to decide what to pay you.

Also:

'Net Invoice Price' means the price paid by the Insured for the Insured
Vehicle including all factory fitted accessories, dealer fitted extras or
accessories and any discount given but excluding road fund licence, new
vehicle registration fee, fuel, paintwork and/or upholstery protection kits,
insurance premiums (including the Premium), warranty premiums and
any such associated costs and any Negative Equity. The Net Invoice
Price must not exceed the amount stated on the Certificate of Insurance.

So, what they pay is the difference between those two, not the market value at time of purchase minus what your insurance payout?





Edited by: makem
 

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When I was talking to ALA about the GAP discount here:http://www.bmaxownersclub.co.uk/forum/discount-on-gap-insurance_topic52.htmlthey said to make sure the policy offered by your dealer does not have a'Market Value Clause'
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This clause means that the GAP company will only pay from the Glass's Guide Retail value. If your Comprehensive Insurer settles for less, you could well end up with a shortfall.
<i style=": rgb251, 251, 253; ">ALAdoes not have one.[/i]<i style=": rgb251, 251, 253; ">
[/i]
<i style=": rgb251, 251, 253; ">AFAIK [/i]Net invoice is the price on the invoice you receive - they price you actually paid for the vehicle.




This sounds good but remember if the car was £20k. You got a 2k discount, invoice would show £18k.




Ford puts up price of car to £22k. Offers no discounts anymore because it's extremely popular.




The worst happens and car is written off. Gap insurance back to invoice will pay you £18k - but it's not enough to buy a new car anymore.




Some policies give you a vehicle replacement that would cover the above shortfall.




It's possibly an unlikely scenario but something to consider.
 
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