GAP insurance

allygee243

I've just bought a new car and the dealer tried to sell me the above insurance. it apparently covers the difference between what you get from the insurance company for your write off and the cost on your invoice. Has anyone got any experience of this type of insurance, where would you get the most cost effective policies?
thank you for your assistance

forgotmyname

Most cost effective, Probably not the one the dealer is selling you.

BJV

Hi there are three main types of gap insurance

Finance gap insurance - Covers the difference between your vehicles valuation and the amount you still owe on finance

Return to invoice gap insurance pays the difference between your vehicles valuation and the invoice price you paid.

Vehicle replacement pays the difference between your vehicles valuation and the amount you need to spend to buy another vehicle the same age mileage and condition as yours was on the day you 1st drove it home.

All the other types are simply variations.

When you buy on line you are charged a lot lower rate of insurance premium tax this is 14 % less than main dealerships so the prices will always be lower.

Which have just done a review I would read this

Google gap insurance and get some quotes.

Let me know if you need any more help

Good luck

Mr_Toad

Years ago, in 2003, I bought an ex demonstrator car, it had 300 miles on the clock and the dealer tried to sell me GAP ins. I'd never heard of it so I did some research and decided to buy my own.

He wanted to charge me £350 for it, seems cheap when added to the cost of the car as it makes little difference to finance payments.

I found I could get it for £67 for the same policy. I went for the Return to Invoice policy and as I wasn't having finance his sales pitch fell on deaf ears.

He tried reducing the quote, £300, £250, £200.......In the end I showed him the printed quote for the £67 and told him if he could match it he could do it. He declined, there wasn't enough profit or commission to make it worth him doing the paperwork. God bless the Internet!