GAP Insurance for new car - do I need it?

scottishsue

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I have just purchased a ex demo BMW 1series. Not happy as I am a cash buyer and they cant make me take a hp/lease agreement so they are pushing me to take out GAP insurance. I dont think I need it - maybe I shouldnt speak to soon - as I do very little driving - local roads. do about 4,000 miles a year and so far have not had an accident in about 10 years. What do other money savers think about this insurance. Also as a moneysaver it aint cheap its about £600!!

Kingsd316

They always try to sell you gap, if you refuse they will probably knock some money off of it, i was quoted a price of £350 for gap, when i said no they offered it to me for £200, i still didnt take it as i didnt feel it was a good deal for the value of the car i bought, the main thing to look at is how much you think the car will depreciate over the period of the gap insurance, then make a decision.

mcjordi

GAP insurance iirc is for those on a finance plan,

they basically pay the difference between an insurance settlement if the vehicle is written off by insurer
say you owed £10k on finance when the car was wrote off and insurance paid out say 8.5k then gap insurance would pay the 1.5k so finance would be clear

daveyjp

There are different types - one will also top up any insrance pay out so you get back what you paid for the car. It's called "back to invoice" gap.

If you want it buy it online for about 25% of what they want from you.

I've never bothered.

Hintza

If bought from new your insurance company will replace with new in the first year. Not sure if that will apply in your case. But I wouldn't buy it and if I did I would hunt around for my own deal which would be a lot cheaper.

Lemonade_Pockets

Check that its return to invoice gap. Also check that your own insurance doesn't cover you for the same thing.

It will probably cost them circa £250-£300 so get them to go a lot lower on the price of it - they will do it as they get target for selling them so they will benefit even if they don't make any money on it.

As to wether its worth it? Like anything in life, the minute you cancel your house insurance you can bet u get burgaled the next day. When i worked in sales you'd be suprised how many people actually used it and came back to buy another new car happy as larry. Where those who didn't where left battling for a fair market value with their insurance co. Depends on your attitude to risk. Its not a bad product, but don't pay £600 for it.

Jakg

4.000 miles a year and your buying a new car?!

LandyAndy

Jakg wrote: »

4.000 miles a year and your buying a new car?!

I agree but prepare to be flamed by the 'it's her money and she can do as she pleases' lobby:rolleyes: .:D .

Hintza

LandyAndy wrote: »

I agree but prepare to be flamed by the 'it's her money and she can do as she pleases' lobby:rolleyes: .:D .

I think it's a fair enough making the point and in the current climate is certainly worth thinking about twice but if no one bought new cars there would be no second hand market.

When to buy a new car:-

1. When someone else is paying
2. When you are feeling flush
3. When you have had enough of bangers (and you feel flush)
4. When you get to an age where you just want the warranty for 3-7 years and no hassle (and you feel flush)

:beer:

Who is feeling that flush just now?

Lemonade_Pockets

Who is feeling that flush just now?

I'm certainly not but everyone battening down the hatches aint gonna help the situation.

vikingaero

Most insurers will replace a car in the first year of insurance if the damage exceeds 50-60% of the cars value. Some insurers like NFU Mutual will do so within the first 2 years and there is one high net worth insurer who will do so as long as the car is insured with them.

GAP is far cheaper online if you need it. The reason it is expensive from a dealer is the multi layers of commission.