GAP insurance help needed

kim85

I purchased a new car today and they reccommended I take GAP insurance out. This is the insurance that bridges the gap between the pirce you get from you insurance company and the full cost you are pating for the car.

I am a little confused about whether this is nesseccary or if they are just trying to sell me more stuff it costs £399 for 3years ( that is how long i plan to keep the car with the plan i have) and is for a Citreon C1 - Any help on this would be great. I have to let them know monday.

peterg1965

DO NOT buy from a dealer, it is hugely overpriced and can be bought online much, much cheaper. Do a search for GAP insurance and lots will pop up.

It would depend on whether your car is financed, and by how much and for how long, does it depreciate very quickly? Your car insurance will in effect give you 'new for old' cover on your car if it written off, provided you are the first registered keeper. Look at the small print in the policy.

Companies like click4gap an others offer it online.

Hope this helps.

Hintza

Also remember most insurers cover you for replacement for the first 12 months (and NFU for first 24 months supposedly)

frankie

Agree with Peterg. GAP will be significantly cheaper if you source it yourself. If you get it from a dealer chances are you will be paying a commission.

Whether you need it depends on your attitude to risk!

boliston

I've always wondered about the point of gap insurance as normal insurance will presumably cover the cost of an equivalent car. Eg write off a 1 year old car and they will pay to replace it with another car of equivalent age and condition. Why is it so important to have "new for old" cover?

Hintza

boliston wrote: »

I've always wondered about the point of gap insurance as normal insurance will presumably cover the cost of an equivalent car. Eg write off a 1 year old car and they will pay to replace it with another car of equivalent age and condition. Why is it so important to have "new for old" cover?

You tend to run into problems if it is leased etc.

kim85

thanks for all the advice, am going to check it out online and check with my insurer if i get new for old for the first year and then look it up online thank u all

real1314

boliston wrote: »

I've always wondered about the point of gap insurance as normal insurance will presumably cover the cost of an equivalent car. Eg write off a 1 year old car and they will pay to replace it with another car of equivalent age and condition. Why is it so important to have "new for old" cover?

If you buy a new car for £15k using a 5 yr personal loan of £14k, then after 14 months and 30,000 miles you write the car off, chances are you'd be looking at a pay-out of under £10k, maybe as low as £8k, but you'd still be paying out on a balance of £13k or so.

That's why SOME people consider gap insurance.

If you buy 2nd hand however, and you expect your car to drop in price, it's less of an issue.

darich

Also worth considering how long you intend to keep the car for.

no point in 3 year gap insurance if you intend to change the car in a year or so.

GT60

Never buy it from a dealer it is double in price and tons of comimision.
i have just done some work experence at a dealer..

kim85

I'm planning to keep the car for three years, asI have a guaranteed value for my car in three years as part of my contract - Looking on line gap insurance isn't as much as I expected got a quote for £83 for the three years, from autotrader and thats based on a an back to invoice deal:

Back to Invoice Plus+ GAP Insurance

Cover features:

• Available for 1 to 4 years
• Pays the first £250 of your insurance excess
• All named drives on the Fully Comprehensive insurance policy
• Maximum payout 105% of Glass’s Guide retail price
• Maximum level of GAP cover available is £125,000
• Pays back to your original invoice price before any deposit deduction
• Doesn’t cover arrears or negative equity shown on purchase invoice
• Available for cars and vans up to 3.5 tons (unladden)
• Vehicles owned outright
• Vehicles on finance - Hire Purchase, Personal Contract Purchase (PCP), Lease Purchase agreements
• Free transfer for the remaining balance of the GAP policy if you change your vehicle before the insurance end date
• We cover under 18's with a full driving licence.
• If your primary insurer replaces your vehicle new for old in the first and or second year, we will transfer the whole policy to your replacement vehicle FREE of charge.
• Any amendment you wish to make to your existing policy, for example; change of address or registration number can also be made, again FREE of charge.