Car GAP insurance should I get more than 3 years?

curedham

Hi there,

We're buying a new car (Vauxhall Astra) with the 0% APR finance over 5 years. As with financed brand new car, we've been recommended to take GAP insurance. Doing a bit of research the most common GAP insurance is 3 years while some companies have 3 or even 5 years insurance.

I can't decide if we should take the basic 3 years or should we get 4 (or even 5) years?

Thoughts, comments, suggestions?

Thanks

CB1878

As the previous poster says, if you opt for longer cover you will have the option of transfer and refunds on most policies. Most online providers allow for 4 year cover, some also provide up to 5.

The poster also points out an issue regarding rebates and refunds, and the ability to transfer. Some providers have all of these options written into policy terms and conditions, but some say they will transfer but the terms state that your policy will end when you sell the vehicle. This means instead of transferring the cover, they say they will rebate the value of the remaining cover against the cost of a new policy. This may be fine, but the issue may come if the provider has a change of policy, or the company is sold or goes out of business. Without the 'transfer' option written into the policy terms then the underwriter behind the terms may have no obligation to do this for you.

Other providers do have the ability to transfer in the t's and c's, so check the policy carefully to be sure.

With longer vehicle warranties on new cars these days then it may make some sense to take longer cover, as long as you have the flexibility if you change your vehicle. As the previous poster says the cost of 5 year cover is clearly higher, but still should be cheaper than your motor dealer for 3 years.