GAP insurance sales nonsense

jimjames

bris wrote: »

I think your missing the point of GAP insurance. It has nothing to do with accident free ownership, it covers insurance loss shortfall.

I think others have also posted on the same point, I know it covers shortfall. To me it just seems a complete waste of money, why pay for something that on day X pays out but if you sell the car you get the lower value. Depreciation is a fact of life for new cars so personally I factor it into the calculations rather than throwing money away for an extremely rare event.

IanMSpencer wrote: »

The point I was making (though I see why you read it that way) was underlining the rarity of a write off.

That's exactly my point, it only pays out in very limited circumstances and in other situations you are just left with a car worth less money due to depreciation. Put the premium towards the value instead.

JohnB47

I've just been offered GAP insurance on a second hand car I'm buying from a dealer. (Price = £9250). No hard sell, just an explanation of what it means. (Perhaps the hard sell will come when I pay the balance on the car and collect it).


£400 ensures that if the car is written off at any time over the next 4 years, the GAP insurance tops up the amount the normal insurance policy pays out, so that I get back the full cost of the car as at the purchase date.


I've been driving for almost 50 years and only had a minor bump (other driver bumped into me).


Is this sort of insurance really worth it and can you get it cheaper elsewhere? If so, where?


Never heard of GAP insurance before.


Edit: Just searched and found a company quoting better GAP cover for half the price the dealer quoted. Still feeling I'm not likely to go for it.

Penelopa.Pitstop

bris wrote: »

I have never seen GAP insurance offer new for old 2.5 years down the line that is just wishful thinking. If this was the case there would be thousands of 2 year old cars in flames every year

You don't know the product then. GAP doesn't offer new for old, it covers the difference between amount from invoice or price of new car and car insurance pay out based on value of the car.

Gap Finance covers the negative equity if car is financed.

You can buy both types of policies for new and old cars until certain age.

I bought 5 years return to invoice for 2 years old car. It wasn't expensive. I never written off car before but had two stolen in past in Europe.

jimjames

JohnB47 wrote: »

Is this sort of insurance really worth ?

In my opinion no. You've had 50 years driving without GAP insurance, I'm not sure why it would now be of benefit.

If you own a car it depreciates. If you write it off at 3 years old you get paid out if you have Gap but if you sell it at 3 years you only get the reduced value after depreciation. I just factor for depreciation in my plans.

AnotherJoe

I wouldn't get GAP on a s/h car under £10k because you arent really insuring anything.

I will be getting it on a £30k car shortly, since the hit after say 18 months would be very high, it could at least be £10k off.

What I dont understand is, why dont mainstream insurers provide that as an option? If I insure with Direct Line, ISTR the first year I do get GAP as part of the policy, so why dont they offer that for years 2-3 as well as an option?

HMRC100

The first time I took out GAP insurance was on a brand new Porsche Cayman GTS. Car cost me £63000... charge for tyre/alloy cover and GAP cover was only £1000 for 3 years. In my case well worth it.

neilmcl

HMRC100 wrote: »

The first time I took out GAP insurance was on a brand new Porsche Cayman GTS. Car cost me £63000... charge for tyre/alloy cover and GAP cover was only £1000 for 3 years. In my case well worth it.

Did you have to make any claims?

gettingtheresometime

I've known new vehicle being involved in accidents where they were written off a week after leaving the forecourt.

HMRC100

neilmcl wrote: »

Did you have to make any claims?

Yes... in the first 9 months I replaced 2 tyres due to punctures. Each tyre costing £290.
Also had an alloy repair due to kerbing. I have diamond cut wheels.
My car is still covered.

G_M

I'm shortly buying a new audi, and was offered GAP for £600ish for 3 years cover. Declined.

Having looked online, I can get it for around £170 for 3 years.

But my car insurance (like most?) offers full replaement value for the first year of a new car, so GAP is just duplication.

It looks like you can buy GAP any time in the first 365 days of ownership, so presumably the time to buy GAP is 11 months after getting the car.

Or have I misunderstood something?

And if that's right, how does one differentiate between the apparent plethora of online providers - none of whom I've ever heard of......?