Should I GAP Insure a new finance car?

bauk

Hi,

In a previous post I completely forgot my other question about GAP insurance. Should I get GAP insurance to protect myself if my financed car is written off? If so where should I start? I have been offered GAP insurance as part of the finance deal for £349 for 3 years.

I have never financed a car so I'm not sure if I need this type of cover or if I can shop around to get a better price etc.


Thanks.

Hintza

Just remember most insurers will replace with a new car if it is written off in the first year.

thetope

Shop around for other prices for gap insurance. I bought mine for less than half of what the dealer's finance company were looking and I would imagine you'll be able to find the same product for substantially less too. £349 seems a lot. Mine was £120 for return to invoice cover. 3 months to go before it's 3 years old now and I haven't needed it, but I'd have no doubt been sick as a dog if I had written off the car and didn't have it!

forgotmyname

Goto the BBC website and watch "Dont get done get Dom" They did a show on GAP insurance

Tells you what to look out for and the pitfalls.

bauk

Thank you so much guys... I very much appreciate your help.
I had a quick look on confused and got a basic quote of £129 but there were extra I could add but didn't understand the jargon.

Thanks.

leosayer

Have you asked the company you are insuring the car with?

forgotmyname

Basics of the TV show, You pay £10k for the car, Insurer value it at £6k GAP say £8k and give you the
£2k shortfall from the insurance.

Worth watching.

bauk

leosayer wrote: »

Have you asked the company you are insuring the car with?

The car is a vw polo and it comes with free 1 year insurance. The dealership quoted £349.

bauk

forgotmyname wrote: »

Basics of the TV show, You pay £10k for the car, Insurer value it at £6k GAP say £8k and give you the
£2k shortfall from the insurance.

Worth watching.

Just my luck... the episode is not available anymore on bbc.
How does this work with finance? with the payments and interest for the sum borrowed?

forgotmyname

That was the complaint with the show it was leaving people owing money still.

Ian_W

If you buy from a dealer they will typically be getting 30-50% commission so GAP can be bought cheaper going direct. Many on here suggest click4gap but I've used ala.co.uk and if you do it through Quidco there is usually a cashback offer on.

There are several flavours of GAP. Return to invoice, RT Finance and new vehicle replacement being the main ones and I think they're fairly self explanatory. The latter pays out for another new car if yours is toast after year 1, as others have said your normal car insurer usually replaces in year1 but as you're getting free insurance with the deal it is worth checking out*.

Only you can decide if it's worth it but like most insurances you probably won't need it but it's there if you do.

*ETA: Noticed on the ala policy:
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. So you don't lose anything if your car insurer replaces it.