Gap Insurance

neilmcl

anotherbaldrick wrote: »

So the GAP insurance is for ???????

Did you not read my post, particularly the bit about AFTER 12 months.

Maybe you should have a read of this - https://www.moneyadviceservice.org.uk/en/articles/do-you-need-gap-insurance

musafir05

After purchasing a brand new Mercedes CLA, the dealership wanted an extra £300 for GAP insurance. But a quick Google search ended with me paying £80 for 2 years.

Double_V

musafir05 wrote: »

After purchasing a brand new Mercedes CLA, the dealership wanted an extra £300 for GAP insurance. But a quick Google search ended with me paying £80 for 2 years.

Which company ?
I am also in search of a cheap GAP insurance.

musafir05

Double_V wrote: »

Which company ?
I am also in search of a cheap GAP insurance.

Get a quote from her
Then ask them to beat it via email.

iolanthe07

Saga included gap insurance with my comprehensive cover for the first two years of ownership.

anotherbaldrick

neilmcl wrote: »

Did you not read my post, particularly the bit about AFTER 12 months.

Maybe you should have a read of this - https://www.moneyadviceservice.org.uk/en/articles/do-you-need-gap-insurance

I come back to what I said (see the following quote) . You pay a premium for a payout enhancement in the remote probability that you or a third party totals your car. Why should this interest someone who only wants his i,2 or 3 year car replaced to return him to the status quo ? why take a casino option ?

Quote from link above

New car (or ‘vehicle replacement’) GAP insurance. This is like return-to-invoice insurance, but it’s designed to compensate for the rising cost of cars. New car GAP insurance makes sure you get your money back plus a bit more, so you can replace your car for a new one of the same model and specification. This type of policy can only be bought for new cars.

jlfrs

The point of GAP insurance is that in the event your financed vehicle is stolen or written off, you will be able to claim for the difference between what the insurance pays you and the cost of repaying the loan. For example, you finance a 20k car by loan, PCP, whatever and after 10 months, it's stolen. The insurance gives you back 15k because that's what it was worth after 10 months depreciation but you may have to pay the finance house 17k because of interest on the loan. So, in this scenario, the GAP insurance would cover this delta. Many car insurance policies will replace a loss for a new car in the first year but it has to have been bought from new in the first place. It's after the 1st year that you really need GAP insurance but I think it is impossible to buy policies in this way. In other words, it has to be taken out at the same time as the car purchase. If you are going to do a Voluntary Termination on a PCP or PCH (as I do) and give the car back halfway through the term, then it's probably not worth messing with. My advice for cheap GAP brokers is to buy a copy of What Car and look at the classifieds at the end or try one of the insurance search engines, such as GoCompare/Money Supermarket etc.

anotherbaldrick

A pox on insurance companies. They kid Joe Public he cannot be safe without insuring his house , possessions, car (yes OK ) but his dog and cat , his tyres , his engine , his credit cards his smart phone , his home appliances his identity His holidays his spectacles, his nuts.
Why not do as I do, tell them all to get stuffed and if you must build a small roof fund ,say £ a week and when it has not been called on use the surplus for a Xmas binge.

IamNotAllowedToUseMyName

anotherbaldrick wrote: »

A pox on insurance companies. They kid Joe Public he cannot be safe without insuring his house , possessions, car (yes OK ) but his dog and cat , his tyres , his engine , his credit cards his smart phone , his home appliances his identity His holidays his spectacles, his nuts.
Why not do as I do, tell them all to get stuffed and if you must build a small roof fund ,say £ a week and when it has not been called on use the surplus for a Xmas binge.

The insurance is of interest to people as leasing is essentially a means buying something better than you can really afford.

A lot of people will feel compelled to take the insurance - whether it is Curry's breakdown insurance on a big TV or washing machine because they can't work out how they would cope if it went wrong.

People who have enough money will take a step back and not be too phased at the idea of covering a couple of thousand if in the very rare situation their car is written off - if they can afford £20k for a car, then they will reason that in the 1 in whatever small number chance that they have a write-off then they will cover it.

Apply this across all insurances then you are left with the main car and house insurance (and avoiding fancy extras like new for old) as being the only things that people really should not risk as only the super-rich and companies would contemplate being able to cover 10's or 100's of thousands of losses.

So as you say, if you add the £300 GAP insurance onto your £100 TV insurance and your £100 washing machine warranty and so on, you soon have a pot of money to set aside.

Alternatively, if a couple of thousand of losses will distress you, consider paying a bit less for a car that you can afford in the first place, perhaps a one year old one where the depreciation hit has already been mainly taken.

Put another way, GAP insurance is the seller's way of telling you you are spending too much money on a car - and getting more money out of you for the privilege of pointing this out.

dacouch

Just to be a pedant, but Currys do not offer breakdown insurance, they offer a service plan which is complicated system designed to avoid the regulation of the FCA and Ombudsman to the detriment of their customers but to make Currys more money

It's not an Insurance product as your claims payment is not guaranteed and they're entirely unregulated