GAP Insurance

fox2319

Just bought a new car (yay!) for the first time and took out GAP insurance as it seemed like a good idea. The insurance was £300 for 3yrs cover, payable in installments of £25 per month for 1 year.

The question is, is this a good deal or are there better out there?

Thanks

Jeff

SPANIEL36

to be truthful, gap insurance was a definate must for me. i paid 250.00 for 3yrs cover but that was about 4 years ago. my landrover freelander got stolen and set alight and if i hadn't had the gap insurance, i would've been out of pocket by 4500.00

fox2319

SPANIEL36 wrote: »

to be truthful, gap insurance was a definate must for me. i paid 250.00 for 3yrs cover but that was about 4 years ago. my landrover freelander got stolen and set alight and if i hadn't had the gap insurance, i would've been out of pocket by 4500.00

Ta for that. Definitely sticking with it, just wondering if I got a good deal or if there's others out there. By the sounds of the deal you got, mine wasn't too bad.

Cheers

daveyjp

Bit late to ask after you have purchased it!

Did you get 'finance gap' or 'return to invoice' gap?

Its a nice earner for the dealer (and that was told to me by the guy who sold me my car!) - probably £100 of what you paid will be commission for teh dealership.

It can be bought for about half of what you paid. Most fully comp insurance will replace a car which is written off in the first year anyway, so the first year cover isn't worth much.

fox2319

daveyjp wrote: »

Bit late to ask after you have purchased it!

Did you get 'finance gap' or 'return to invoice' gap?

Its a nice earner for the dealer (and that was told to me by the guy who sold me my car!) - probably £100 of what you paid will be commission for teh dealership.

It can be bought for about half of what you paid. Most fully comp insurance will replace a car which is written off in the first year anyway, so the first year cover isn't worth much.

It's the return to invoice gap.

I'm asking now as I've got a 14 day cooling off period and thought it better to get something while I checked it out. I've no doubt it's a good earner for the garage but also feel it would be relatively safe as the car manufacurer are likely to be around for the next few years

Cheers

Jeff

daveyjp

The insurance won't be underwritten by the car company - it will be provided by a 3rd party. Do a search for "gap insurance" and get some alternative quotes, then go back to the dealer - most will discount the cost to secure the sale.

As an example 3yrs with a max claim of £10,000 is available for £142 - £25,000 cover is less than the £300 you are paying.

JennyW_2

we purchased a new Freelander in December so for a cost of £300 we thought it was worth it. The insurance we have is underwritten by Landrover.

fox2319

daveyjp wrote: »

The insurance won't be underwritten by the car company - it will be provided by a 3rd party. Do a search for "gap insurance" and get some alternative quotes, then go back to the dealer - most will discount the cost to secure the sale.

As an example 3yrs with a max claim of £10,000 is available for £142 - £25,000 cover is less than the £300 you are paying.

Ta for that, is there any way of checking whether the company has any sort of backing in the event that the firm goes bust. I'm presuming that having an FSA logo on the page is a good thing but does this give any extra protection?

Ta

Jeff

raskazz

As the insurer is FSA authorised, you will be covered by the Financial Services Compensation Scheme - http://www.fscs.org.uk/

fox2319

Thanks for all the replies. I've written the letter to cancel the dealer's policy (recorded delivery I feel) and am thinking of taking out the insurance from click4gap (they show on the fsa website at an address that is the same as the contacts page).

Anyone got any opinions on these guys? If I go for them, it'll save me around £150 so it's looking very tempting.

Cheers

Jeff

gimmethemoney

On a similar subject my partner bought some GAP insurance with her new car, she didnt realise she could get it up to 120 days later.
When she decided to cancel the dealership said she had 28 days to cool off but the brokers told her it was 14 days and too late.
The car salesman who has always been helpful told me that all the sales staff were under the impresssion it was 28 days.
She still hasnt received any paperwork relating to the insurance. Does anybody know how she stands.
If she had bought the insurance off the internet she would have got 4 years cover for the price she paid for 3 from the dealer