gap insurance for motor vehicles

gromit69

I'm just about to buy a nearly new car, and I've been offered GAP insurance by the garage.
Normally I'd instantly dismiss this sort of thing, but it's a relative who's selling me the car, so I'm getting a reasonable discount (and the extra super invisble coating on the car which protects from meteors, paint, bird poo and baddies)

Is Gap insurance really worth it?
To me it seems like a bit of a cash in on the greedy - if your car is written off, we'll give you some extra money to buy a brand new one, rather than replace it with some thing of a similar age.

Any thoughts?

p.s. I'm being offered the insurance as a £250 one off payment with the body kit thing thrown in for free.

Astaroth

There are a few variances in what GAP insurance will and wont cover so you really need to read the policy book. As with all non-compulsory insurance it all comes down to your view on risk.

Be a little careful with optional extras, every one will have to be declared to your motor insurers even those fitted by the dealer and can significantly increase your insurance - for example take a Saxo X (bottom of the range) stick the VTS body kit on (top of the range/ performance model) and you then pay more or less the same insurance as owning a VTS would have cost ( namely due to thieves mistaking it for the higher model and a certain "stereotype" of the sort of people that want to make their vehicles look like a performance car when they cant afford one)

linda.b_4

I bought a new car last week. was offered gap insurance. When we looked through the conditions, it said you must be the person named on the policy, must be the person named on finance and must be the registered owner and have full comp ins in your name. I am the registered owner and ins is in my name. But hubby has the finance in his name and is on the finance agreement. when I rang the car salesroom, they said they would send out a letter to say every thing was ok and a claim would be settled in the event of my car being written off. still not had letter. Can I cancel insurance as it was misold? or do I have to stick with it and hope I get a covering letter? Any advice would be welcome.

Sponge

Is this dealer provided GAP insurance? If so, then check elsewhere for cheaper cover. Dealer provided GAP insurance is notoriously expensive.

What sort of finance is it? If it's a simple personal loan from a bank or building society (ie not financed through the dealer) then I can't see how it matters whos name is on the policy. Or, was the finance provided by the dealer, along with the GAP, during the sale? If they put the finance in your husband's name, but everything else in yours, and then signed you up for GAP insurance, then it seems to me they have mis-sold the policy (maybe unintentionally).

If they don't provide something in writing, and I stress in writing, then I think you have a good case for cancellation due to miselling. You mentioned the fact you may not meet their own T&Cs (something they should have noticed during the sale), yet they still sold you the product.

TOPSAVER_5

I am just picking up a new car today, dealer has been trying to flog us GAP insurance , we were unsure so said we would go home and research it, well we haven't had the time to , had a quick look today as picking it up in a few hours and last week the dealer told us we would have to take it out there and then with them, not at a later date.There are so many on the internet and you have up to 90 days to take them up, also just found out from our insurer we would get full money back in 1st 12 months anyway. We now have at least 90 days to research it more so has anyone any recommendations of who to go with. I think I would prefer to have it than not as the shortfall in case of an accident could be huge.Any advice greatly received.

peterg1965

Hiya top saver. I was in exactly thge same position as you a few months back. Brand new BMW, and the finance chap tried to sell me BMW's own Gap Insurance. It is very expensive from dealers (they clearly make loads of commission) and there are four different types. I can heartily recommend http://www.click4gap.co.uk/ very goos value, FSA registered etc. I took £15000 of 'Return to Invoice' Gap cover for £190, as opposed to the dealer wanting over £500 for the same cover. Also be aware that if it is a brand new car your car insurance policy may well give you a 'new for old' car in the event of your brand new car being an insurance write off in the FIRST year. Worth a check.

Bur definately check out click4 gap it explains the options very well.

Pete

tjm_3

My husband & i are about to purchase a new car & the finacial advisor associated with ford are recommending that we purchase GAP insurance (which is an extra £345 on top of our normal car insurance). What are your views/opinions? is it a worthwhile insurance or just another extra,money making insurance for the company?
I forget to mention, we are Ford Privilege customers & therefore we are entitled to a discount on the new book price

Strangled

It is worth having I think, especially if you only pay a small deposit, but... you can buy it much cheaper online.... Google GAP insurance.

JennyW_2

I think it's worth it too. We purchased a new land rover in December and for the small cost compared to what the car's worth, I'm glad we're covered.

mike.k_4

i am looking at buying a fairly new car and was offered gap insurance at a cost of £440 for 3 years. have never heard of this but it sounded good.(didn't buy as i wanted more info) did some searching and found quote for £130 for 3 years. has anyone ever had dealings with this type of insurance