New car and Gap Insurance

Icey77

We've ordered a new Skoda with quite a high spec - we've used an inheritance to buy this car with the intention of keeping it for a long time and ordered it with bits and pieces we knew we would want and use for the foreseeable future. This car will fit our needs as our family grows and changes.

We will be paying for the car in full when we collect it, so no finance or amount outstanding once we drive off the forecourt.

We've been shown the leaflet for Gap Insurance and were wondering if it is worth taking out, can anyone advise please?

http://www.skoda.co.uk/finance/skoda-insurance/gap-insurance

Many thanks x

macman

Even if it were (which only you can decide), you can buy it independently for less than half of what the dealer will charge you. It's just a couple of hundred easy commission to them.
As a cash buyer, it's unlikely that you'd need such cover.

InsideInsurance

Gap is a useful product but shop around, dealers tend to be several times more expensive than comparable products elsewhere.

As there is no finance involved then RTI or RV are the two types you'd potentially want to look at.

Remember that most insurers include RV in the first year of ownership anyway (saga do 2 years from memory if you are in their age bracket)

cajef

macman wrote: »

As a cash buyer, it's unlikely that you'd need such cover.

Why?

If the car gets written off in two years time how would they finance a brand new replacement with the difference between the cost and the insurance payout if they don't have spare cash.

OP, don't buy it from the dealer, I bought a brand new car last year GAP insurance from the dealer was over twice what I paid online for better cover.

Icey77

Thank you everyone, a quick quote through Autotrader for research purposes has shown that it's easily half the price of the dealer gap insurance!!

We shall be doing proper, detailed research and quotes later on once we know when we're collecting the car

InsideInsurance

Icey77 wrote: »

Thank you everyone, a quick quote through Autotrader for research purposes has shown that it's easily half the price of the dealer gap insurance!!

If its half the price then you can buy it cheaper elsewhere :eek:

I did some work for a finance company that also "provided" GAP insurance. In reality it was another companies policy that we were white labeling to ourselves. Other than setting up the commercial arrangement we were not involved at all in the process. The dealer input the details directly into the insurers website, the insurer issued all the paperwork, did the monies, did the customer service etc.

We bought the insurance from the insurer at wholesale for £X we sold it to the dealer for £2X and the dealer was typically selling it to the customer for between £6X and £8X

So we made a 50% profit simply because the dealers liked having one company to deal with rather than one for finance and one for insurance even though in reality they were dealing with both.