is it worth getting gap insurance?

blue-kat

I am buying a 1 yr old car from available Car (car supermarket), and wondering if it worth getting GAP insurance, which pays out the difference from current value if the car is declared a total loss for 3 years. the premium is £299.

the salesman did mention that it would make most difference in years 2 and 3 when depreciation values will hit, so guess that means it's not worth getting until then ?

the other insurance product he mentioned was £525 tyre insurance, accidental and malicious damaged cover, for premium of £99 for 2 yrs. doesn't sound worth it to me.

any thoughts?
thanks v much

vansboy

GAP insurance is a reasonable product & MIGHT be worth considering, but you're spending another £299 that you don't need to & interest added to this amount, too.

Wouldn't bother with theother cover you mentioned.

& assuming you've done your sums, to compare the WHOLE finance deal the garage are offering & compared it to where else you could finance it!!??

VB

blue-kat

thanks VB. I hadn't heard of gap insurance before and it does sound a good product if bought at the right price .
I'll shop around for it.
I am buying the car mostly cash, just a bit of credit card jiggling for the last £1K.

chieffy72

I sold a car to a friend of mine (I sell new cars at a local Ford dealer) in January 2006 for £8100. Last month she had it stolen and as it was over twelve months old the insurance company wouldn't replace it with a new one.She asked my advice and I reckoned that to buy the same car about 12 months old would cost her £7300 so that's what she should try and get from her insurers. The insurance company offered £5500!! She obvously wasn't happy,so far they have upped their offer to £6000. If she had taken out GAP Insurance she would have just accepted the £5500 and the GAP company would give her £2600 (less road tax and registration fees) so she could walk back into the showroom with the same money that she initially paid for the car.
The GAP company wouldn't be happy about having to fork out £2600 so they would then fight it out with the insurance company to get a higher settlement saving her all the hassle,letters and phone calls to the insurance company. I reckon it's well worth having and we charge £299 as well so that would appear to be the going rate.

chieffy72

I sold a car to a friend of mine (I sell new cars at a local Ford dealer) in January 2006 for £8100. Last month she had it stolen and as it was over twelve months old the insurance company wouldn't replace it with a new one.She asked my advice and I reckoned that to buy the same car about 12 months old would cost her £7300 so that's what she should try and get from her insurers. The insurance company offered £5500!! She obvously wasn't happy,so far they have upped their offer to £6000. If she had taken out GAP Insurance she would have just accepted the £5500 and the GAP company would give her £2600 (less road tax and registration fees) so she could walk back into the showroom with the same money that she initially paid for the car.
The GAP company wouldn't be happy about having to fork out £2600 so they would then fight it out with the insurance company to get a higher settlement saving her all the hassle,letters and phone calls to the insurance company. I reckon it's well worth having and we charge £299 as well so that would appear to be the going rate.

plane_boy2000

chieffy72 wrote: »

I sold a car to a friend of mine (I sell new cars at a local Ford dealer) in January 2006 for £8100. Last month she had it stolen and as it was over twelve months old the insurance company wouldn't replace it with a new one.She asked my advice and I reckoned that to buy the same car about 12 months old would cost her £7300 so that's what she should try and get from her insurers. The insurance company offered £5500!! She obvously wasn't happy,so far they have upped their offer to £6000. If she had taken out GAP Insurance she would have just accepted the £5500 and the GAP company would give her £2600 (less road tax and registration fees) so she could walk back into the showroom with the same money that she initially paid for the car.
The GAP company wouldn't be happy about having to fork out £2600 so they would then fight it out with the insurance company to get a higher settlement saving her all the hassle,letters and phone calls to the insurance company. I reckon it's well worth having and we charge £299 as well so that would appear to be the going rate.

Not always that easy. I have heard of people trying to claim on GAP and teh insurer arguing with your car insurance com that the payout is not a market value so they refuse to make up the difference.

If the replacement cost of a car for your friend is 7300 to put her back in the same position she was in before then thats what she should get. As you work at a garage perhaps you could write a letter for her to send to her insurance co to tell them that a replacement would be 7300???

plane_boy2000

GAP insurance is cheaper on line. you should be able to get it for around the 100 mark if you shop around. try https://www.click4gap.com