Value of GAP Insurance

Swans1912

Hi All,

I've bought the girl friend a new (58) mini one with a pepper pack and some other extra which hit £15000 in total.

I'm due to be picking it up on Wednesday / Thursday and unsure if GAP insurance is worth the £150 for 3 years cover.

The Mini tends to hold its value very well and with many GAP insurance companies not covering extras I can't see a need for GAP insurance.

Any views or opinions?

raskazz

Be aware that almost all car insurers have a 'new car benefit' clause in their comprehensive policies. This means that if your car is written-off in the first year of ownership from new, then (subject to a few conditions, i.e. availability, mileage - check your policy booklet) they will replace it with a brand new car rather than give you a cash settlement. Thus if you take out 3 years of GAP insurance, you will not actually get any benefit from the GAP insurance in the first year of ownership, only the 2 years afterwards.

greco_2

GAP insurance is a great money spinner for the insurers offering cover and car dealers selling it so if they're doing well out of it, someone else is doing badly. Guess who?

There are also different types of GAP cover, some better than others.

Swans1912

raskazz wrote: »

Be aware that almost all car insurers have a 'new car benefit' clause in their comprehensive policies. This means that if your car is written-off in the first year of ownership from new, then (subject to a few conditions, i.e. availability, mileage - check your policy booklet) they will replace it with a brand new car rather than give you a cash settlement.

raskazz, thank you VERY much! I asked the partner to call her insurance company today (Direct Line) and they explain the new car benefit clause.

You have saved me around £100 on insurance that is not required! :T

koexelek

Don't see why there should really be a need for gap insurance

Why doesn't the first insurer charge a higher premium and give a proper pay out ?

aitch-aitch

Thanks for this post. What a coincidence.

I've just got a quote for a new car and it includes GAP insurance which the salesman told me was a really good deal at £350 for 3 years - now I know different!!!