'Gap insurance' for classics?
in [Classic Cars]
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From: Dave Plowman (News) on 8 Dec 2008 08:37 In article <6q4eihFapmldU13(a)mid.individual.net>, Conor <conor_turton(a)hotmail.com> wrote: > In article <500a6d2cebdave(a)davenoise.co.uk>, Dave Plowman (News) > says... > > I read it as the car is so special in spec it can't be replaced by > > another - unless those 'mods' are made to it too. > > > So the same as quite a few modded MK1 Capris I know. There's a guy I've > met who owns an original Swaymar Capri (to say it was a shock to see it > there when he opened the garage door to get some bits I'd bought off > him is an understatement). There were only ever two made and one got > burned out. He's spent �10,000's on restoring it. It is completely and > utterly irreplaceable yet it has a market value which is less than the > restoration value by a massive amount and that's all it can be insured > for. I'll bet it could be insured properly by a specialist - pretty well anything can. But they might well insist on untenable precautions against theft, etc. My SD1 is in the same sort of position - it has many mods and extras which mean it simply couldn't be directly replaced if a total loss. Of course if it was just accident damaged beyond economic repair those bits could be transferred to a 'new' car. -- *A fool and his money are soon partying * Dave Plowman dave(a)davenoise.co.uk London SW To e-mail, change noise into sound.
From: Leroy Curtis on 8 Dec 2008 17:54 In article <6q41crFanud0U1(a)mid.individual.net>, Adrian <toomany2cvs(a)gmail.com> writes >Phileaus Leaius <whos(a)prettyboy.then> gurgled happily, sounding much like >they were saying: > >> Hmmm. 'Gap insurance' offers a secondary premium over and above your >> insurance policy to cover the shortfall between what your insurance pays >> out and the actual cost of replacing your car. > >Not quite. It covers the shortfall between the value of the used car your >insurance has just paid the value of, and the cost of replacing it with a >brand new equivalent. My experience of GAP cover is that it can take two forms. The first covers the difference between the insurance payout and the invoice price of the car when the insured bought it. It doesn't pay replacement cost; think of the difficulty of finding a like-for-like vehicle if the car was bought used, or if an exact equivalent new model was no longer available. The other form, known as fiancee GAP, will just pay any outstanding finance balance in excess of the insurance payout, e.g. a car is written off and the insurer pays out �4600, but the owner still owes �5800 to a finance company. The GAP cover will pay out �1200 to the finance company. -- Regards Leroy Curtis Please replace "nospam" with "baram" in my address if you wish to reply by Email
From: Ian on 8 Dec 2008 18:24 On 7 Dec, 19:49, Adrian <toomany2...(a)gmail.com> wrote: > Phileaus Leaius <w...(a)prettyboy.then> gurgled happily, sounding much like > they were saying: > > but its only 'worth' £11K. Neither number is random in any way - they > > are accurate reflections of two different states. > > No, only one is even remotely relevant. The value. Indeed, because there is no proof that he got good value for money in the rebuild. I've just finished (bar the hood) my Herald. Starting from a painted body on a rolling chassis I spent about a thousand pounds in parts and precisely zero in labour. I could, had I been rich, stupid and boring, paid someone to do it, in which case I'd estimate another £5,000 in labour costs. Or £10k if I'd persuaded a BMW main dealer to do it. Ultimately all that matters to the insurance company, and to me, is "How much would it cost to get another one like it?" Ian
From: Ian on 8 Dec 2008 18:27 On 7 Dec, 19:59, Phileaus Leaius <w...(a)prettyboy.then> wrote: > No, plenty of bits of paper to prove. In fact, I'd suggest that the > *value* is the "notional number", since its nothing more than a > subjective guesstimate - you can never KNOW a value until someone offers > you that much for it, and since its now gone in some way thats not going > to happen. The *cost* is OBjective, since you have bills to demonstrate it. Are you saying that a car on which the owner has done 1,000 hours is worth £25k less than an identical one on which a professional restorer has done the 1,000 hours? Ian
From: Leroy Curtis on 8 Dec 2008 18:46
In article <EYpD$HGDXaPJFwm3(a)baram.demon.co.uk>, Leroy Curtis <leroy(a)nospam.demon.co.uk> writes > >The other form, known as fiancee Aren't spell checkers a wonderful thing :-( This should read "finance" > GAP, will just pay any outstanding finance balance in excess of the >insurance payout, e.g. a car is written off and the insurer pays out >�4600, but the owner still owes �5800 to a finance company. The GAP >cover will pay out �1200 to the finance company. -- Regards Leroy Curtis Please replace "nospam" with "baram" in my address if you wish to reply by Email |