GAP Insurance

Freefall

OK.

Looking to buy a nearly new car from a Franchised Dealership.

About me: First Car. 23 Year old Male. Just passed driving Test

Do you guys think it is worthwhile buying GAP Insurance?

If so, where from?

Biketrials08

Did it once, never bothered since, so my view is: no.

poppasmurf_bewdley

I'm afraid I just don't trust insurance companies to be forthright when dealing with GAP insurance. To me it's like banks selling insurance to guard against credit card losses that banks by law have to cover anyway.

Flyboy152

Biketrials08 wrote: »

Did it once, never bothered since, so my view is: no.

WOW....what an insightful reason for not buying insurance.

jbainbridge

You're insuring against total loss. How likely is that?

I'd go with unlikely. So my considered response is NO.

Apples2

Isn't GAP compulsory on some of these finance deals?

Best idea for a first car is not to overspend on a dream car. You will most likely scrape it on a gate post or cause some other damage to it, get a banger and bend it back into shape yourself.

Flyboy152

Freefall wrote: »

OK.

Looking to buy a nearly new car from a Franchised Dealership.

About me: First Car. 23 Year old Male. Just passed driving Test

Do you guys think it is worthwhile buying GAP Insurance?

If so, where from?

As with all insurances, it is up to you to balance the risk against the cost. As you are a new driver, the chances of you writing-off your car is much higher than someone who has twenty years of experience on the road. If you are financing the car, you will need to pay the balance of any outstanding finance, if the car no longer exists. The average cost of a GAP policy could be between one or two hundred pounds (depending on the car), some policies will last for three years, so you will have to decide whether that is good value for money or not.
　
　
I would recommend you research the provider as much as possible, taking into account their claims history and their reputation. Bear in mind that most of the stories you read on-line do not always reflect the true nature of the company, so always try to search out a balanced view.

Freefall

jbainbridge wrote: »

You're insuring against total loss. How likely is that?

I'd go with unlikely. So my considered response is NO.

Hahah. You must hold a different view to insurers for first time male drivers under the age of 25 :P

Freefall

Apples2 wrote: »

Isn't GAP compulsory on some of these finance deals?

Best idea for a first car is not to overspend on a dream car. You will most likely scrape it on a gate post or cause some other damage to it, get a banger and bend it back into shape yourself.

I have heard of people being told that GAP insurance is compulsory in their case. However, this guy had w/o his previous car and had a shortfall to the finance company.

Gloomendoom

What kind of GAP insurance is the OP asking about? There seems to be at least three different types.

BJV

OK there are three main types of gap insurance but you do not have to have any of them and no matter what anyone says it it your choice. No one can make it a term of the deal and no finance house as far as I know will ever insist on it.

It is your choice. It is really very easy to understand.

Finance gap - pays the difference between your vehicles value and clears the outstanding finance.

Return to invoice pays the difference between your vehicles value and the invoice price you paid or the amount outstanding on finance which ever is the greater.

Vehicle replacement pays the difference between your vehicles value and the cost of replacing it on a like for like basis with another the same age mileage and condition as yours was on the day you bought it.

All the different names of gap insurance are really just variations on these three. I would Google gap insurance get a few quotes and make your own choice as ultimately it is you who will have to pay the premium.