Car GAP insurance is it worth it?

swizzle_2

Hello

Last time we bought a car- 2 years ago- we bought GAP- Return to invoice insurance, but do you realy need it?

We are looking at buying a car at £7500, £5500 of this will be paid for with a personal loan.

The car will be insurade fully comp, loan will be for 3 years an car is 18mths old.

Thanks in advance

Hintza

Personally I would say no.

GAP insurance is useful if you are leasing a car where you have an undertaking to return the car to the lease company at the end of the time in a satisfactory condition.

But if you buy a car and insure it normally you should be OK. If it was brand new car it might be worth considering but even then it will be relatively expensive for the risk involved.

Of course sods law does apply in these situations but you pays your money (or not in this case) and take a chance.

peterg1965

In your particular case i would say no, and i agree with Hintza. If it was a brand new car with the expected level of depreciation in the first couple of years it is worth it for peace of mind.

Its all about risk this business, and whether you are prepared to weigh up those risks of paying out x amount for a policy that you may not even use. I brought Gap insurance when i purchased a new BMW last september, the dealer policy was exhorbitantly expensive over £500, i brought it over the internet in the end from https://www.click4gap.co.uk for £170, with an autotrader £10 voucher and £20 of cashback through TopCashBack.com. Have a look on the website and see what the figure comes out as, with a bit of cashback it may be worth it. Having had a look myself I reckon it would cost you about £133 without the cashback. Quidco are currently offering £22 of cashback from click4gap, so is it worth £111??

iolanthe07

if it was a brand new car with the expected level of depreciation in the first couple of years it is worth it for peace of mind.

Agree with this, but most comprehensive insurance policies will replace with new if your brand new car gets written off in the first year.

peterg1965

Very true iolanthe07 most, if not all, insurance policies have the 'new for old' cover for the first twelve months, but if you are going to keep the car for more than a year you cannot buy GAP insurance after 90 days of ownership.