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      02-25-2012, 12:40 PM   #6
JonF1982
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Drives: F20 116i Sport - Crimson Red
Join Date: Dec 2011
Location: England

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Ok so lets say you paid 20,000 for a car 3 years ago. At the time you got a really good discount of 3,000. Today, the car retails for 24,000 as we've had a few years of inflation.

You still owe 10,000. The Car's market value is 8,000. Your car gets stolen, you have no car and still owe 10k in finance.

Standard gap insurance pays you the difference between your insurance settlement (8,000) and you finance outstanding (10,000). So 2,000. That gives you 10,000. You to go into the dealer and put down 10k, and finance 14k as that special offer you got 3 years ago isn't available.

Return to invoice pays you the difference between your insurance settlement (8,000) and what you paid for the car (20,000). So you walk into the dealership with 20,000, but still need to find 4,000 to buy a new car.

Replacement Car just gives you a new car, regardless of the fact it now costs 4,000 more than when you bought it.

Therefore you have got three levels of Gap insurance, Standard, RTI and Replacement Car, standard being the basic one, replacement car being the best.

Hope that helps.
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Car history:
116i Sport 5 door Crimson Red 2012 -
120i M-Sport 3 Door Le Mans Blue 2009 - 2012