GAP insurance

mcduff16

Hello

In the process of buying a new car and the dealer has offered GAP insurance. Definitely want to take it out however they have quoted us £500 for 3 years. A quick search online has rung up quotes for £190 for 3 years.

Is it better to go with the dealer policy (though i begrudge paying so much more) or are most GAP policies generally the same with the same cover? Thanks

BJV

The choice is yours and your dealership will always have to charge you more as they are legally bound to charge your more insurance premium tax.

Before you buy check with your own insurance company if they offer new for old. If they do some suppliers allow you to defer the start date so you are not paying for double cover.

Which recently did an totally independent review http://www.which.co.uk/money/insurance/guides/gap-insurance/what-is-gap-insurance/. They compared dealership cover to the top ten or so providers.

The cover can vary slightly from provider to provider so always read all the terms and conditions. Remember no matter what is advertised or promised it is these terms and conditions that will be used to settle any claim.

In brief - finance / contract hire gap insurance simply clears the balance between your vehicles valuation and the outstanding finance or rentals.

Return to invoice pays the difference to top you back up to the invoice price. (Check if the policy covers warranties and extras. and if the price is limited in any way to any guide price )

Vehicle replacement pays the difference between the amount you would need to spend to buy another car the same age mileage and condition as yours was on the day your 1st drove it home even if the price has gone up ( check again for warranties, excess's and you gets paid when you claim )

Hope this helps? What type of car are your buying?

MX5huggy

There is no advantage with the policy from the dealer.

mcduff16

Thanks that was very useful info. It's a Mercedes, I think the vehicle replacement cover would be most suitable. Thanks!

BJV wrote: »

The choice is yours and your dealership will always have to charge you more as they are legally bound to charge your more insurance premium tax.

Before you buy check with your own insurance company if they offer new for old. If they do some suppliers allow you to defer the start date so you are not paying for double cover.

Which recently did an totally independent review http://www.which.co.uk/money/insurance/guides/gap-insurance/what-is-gap-insurance/. They compared dealership cover to the top ten or so providers.

The cover can vary slightly from provider to provider so always read all the terms and conditions. Remember no matter what is advertised or promised it is these terms and conditions that will be used to settle any claim.

In brief - finance / contract hire gap insurance simply clears the balance between your vehicles valuation and the outstanding finance or rentals.

Return to invoice pays the difference to top you back up to the invoice price. (Check if the policy covers warranties and extras. and if the price is limited in any way to any guide price )

Vehicle replacement pays the difference between the amount you would need to spend to buy another car the same age mileage and condition as yours was on the day your 1st drove it home even if the price has gone up ( check again for warranties, excess's and you gets paid when you claim )

Hope this helps? What type of car are your buying?

hollie.weimeraner

Try www.ala.co.uk I've used them and they're very helpful and competitive.

Hintza

Most insurers will cover you for a new car if written off in the first year.

BJV

If you insurance company offer you new for old within the first 12 months and you are happy with there terms and conditions you could save a few pounds exploring the deferred option.

Just Google Deferred Gap insurance.