insurance add on for new car

madeleine

I'm about to buy a new car (20% off deal!), and the garage are offering me an insurance product which would pay the difference between what my ordinary car insurance would pay if my car were to be written off or stolen in the first three years (quite a low value), and the price which I'm paying for the car (which is considerably higher). Does anyone know if other insurance companies offer this, and what it's called?

Quentin

Yes others do this "gap" insurance to cover depreciation.

Ian_W

It's called GAP insurance and if you buy from the dealer you will typically pay £££s more than buying direct. Is it worth it? Only you can decide but bear in mind your insurer will usually replace with a new car in the first 12 months (check though) but if you intend to keep the vehicle several years then market value will be 40-60% less than you paid after 2-3yrs.
What your'e describing is "back to invoice" GAP but, of course, car prices may have risen so I would go for Replacement Vehicle GAP where they fund a same spec new car.
A lot on here recommend click4gap but I've used ala.co.uk who were more compeditive and if you buy via QUIDCO will also give you a further £25 cashback.

madeleine

That's all really useful. I thought there would probably be other cheaper providers but didn't know where or how to begin looking. Thanks very much.

madeleine

Gosh; just been to click4gap site, and I can get the same insurance for £180 less! Fantastic! Thanks again.