GAP when paying cash?

sleepymans

I am buying a new car for £23k cash (no finance) and have been offered GAP insurance at £299 for three years......is it good vfm?

dacouch

How long do you plan to keep the car?

stator

sleepymans wrote: »

I am buying a new car for £23k cash (no finance) and have been offered GAP insurance at £299 for three years......is it good vfm?

If you write off your car it was good value for money.
If you don't write off your car it was a waste of money.

Buy an insurance policy that replaces with a new car in the first year if this worries you. See another thread on this forum for some details of which insurers this is.

If the car was written off after 2 years, would you want a new car, or another 2 year old car? If you are happy with a 2 year old car, then you don't need GAP insurance because you would get the market value from your insurance and could use it to buy another 2 year old car.

daveyjp

Make your decision on whether you would buy 'depreciation insurance' and also whether you can wait as many as 5 months for the GAP company and insurance company to argue values.

Thats 5 months when you won't have a car.