gap insurance for motor vehicles

thefatburner

I have just purchased a 3 year old BMW and was sold Gap insurance for 3 years for £399. I hadn't heard of gap insurance before but it made sense when explained, but then I guess it would coming from a salesman. After did a little research and now am in the process of cancelling so I can buy it independently.

While researching I found this handy link at Which:
which.co.uk/money/insurance/guides/gap-insurance/return-to-invoice-gap-insurance-review

Hope this helps

ASHLEY60

It depends on what type of Gap cover is purchased. the cover that you are talking about is just Finance Shortfall Gap only not a bespoke Gap Policy .
the correct policy to buy would be either 'Return to Invoice Gap', which pays out the difference between Insurance company pay out & original Invoice price for 3 years from purchase, or 'Combined Gap Cover' which pays in the same way as the Return to Invoice Gap, or pays back to any finance settlement figure whichever is the greater... the later is usually the best bet if financing the car in some way, tends to be a little bit more expensive, but if you shop around or negotiate with the dealer you could reduce the cost.