GAP insurance - worthwhile?

djwolf

I've just bought a sportscar worth around 9.5k. I wasn't going to take out GAP insurance but the dealer have recommended I have it. I can see how it can give peace of mind if the worst happens. I've been offered it for £300 and it will cover the car for 3 years. What do people think? Is it worthwhile? Do they always pay up to the actual amount you paid for the car?

lisyloo

Can you afford it if there is a GAP?
How would you feel about not having quite such a good car? Does it bother you or is it really important to have the exact model you wanted?
Are you the sort of person who's prepared to reserch on the internet and write letters to get absolutely everything you are entitled to or will you just accept their offer?

Personally I woulnd't get it, but then I wouldn't be too fussed about what car I have and I would aslo be prepared to fight tool & nail with an insurer to get what I'm entitled to.

But not everyone's the same so you have to consider these factors.

missile

As with most insurance policies you hope you will never need to claim. It is not practical and would be horrendously expensive to insure against all of life's misfortunes. You need to weigh up the risks for your situation.

If you do decide you want it, please check the small print for exclusions. Shop around as I am sure you will find it cheaper than at the dealer. Remember he makes a profit by selling this to you.

djwolf

Yeah as I've just found out. My loan company offer GAP for £199 and that covers me for 5 years. I'm tempted at that price.

dacouch

Djwolf it is not the best place to buy gap cover from the dealer or the finance company as they will charge you over the going rate and will add the premium to you finance so the £199 premium will after five years worth of interest be nearer £400.

You can buy gap cover on the internet for a lower price and pay it off in one payment so you avoid the interest.

If you do not intend keeping the car for more than a year bear in mind most car insurance policies will replace the car with a new one if the repairs are more than 60% (This can vary) of the value.

If you are buying Gap Cover the best type to go for is "Back to Invoice"

Bear in mind that they normally have a limit to the amount they will pay between what your car insurer pays you and the new price (Some only clear the outstanding fianance). On a car valued at £9500 some will only pay upto £3000 difference so in 4 or 5 years time this might not be enough so read the small print.

Like I said its normally best to buy GAP cover independently, if you want a recommendation I can give you the link of a compeitive company for this

slipp_digby

djwolf wrote: »

the dealer have recommended I have it.

commission alert!!

seem very expensive mate. i've got a £10k back to invoice block of cover for 3 years and it was £164.

if the car is worth say £10k and you need to claim in three years the differnece in settlement can only be, i dunno £5k for arguements sake at max.

try direct GAP online or similar £90 premium looks more realistic, £5k cover for three years.

check the terms and conditions before you buy GAP

fivetide1978

As usual these things are great if you have to use them and expensive if you don't.

I know someone with a Subaru Impreza that was written off after being stolen. The payout was certainly needed as the car had seriously dropped in value when the fuel issues kicked in. If they hadn't had the cover they have been in big problems.

That said, despite what you see an hear on the news the majority of the UK population goes to bed and gets up again perfectly fine so it is unlikely you will need it!

5t.