GAP Insurance

legionare64

I am looking for some advice on whether to buy GAP insurance for a new car we are picking up this week.
Car is a New Discovery Sport. On the road price is approx. £40k we are getting JLR Privilege discount of approx £10k. Our trade in is £7.5k plus £2.5k cash. We are borrowing £20k over 5 years from M&S at 2.9% which is very affordable (personal loan not tied to car). If car is written off what benefit would GAP insurance give me. I couldn't get discount on a replace ment so would expect insurance to pay £40k to replace in first year. But what would be expectation of GAP as the car gets older.

neilmcl

legionare64 wrote: »

I am looking for some advice on whether to buy GAP insurance for a new car we are picking up this week.
Car is a New Discovery Sport. On the road price is approx. £40k we are getting JLR Privilege discount of approx £10k. Our trade in is £7.5k plus £2.5k cash. We are borrowing £20k over 5 years from M&S at 2.9% which is very affordable (personal loan not tied to car). If car is written off what benefit would GAP insurance give me. I couldn't get discount on a replace ment so would expect insurance to pay £40k to replace in first year. But what would be expectation of GAP as the car gets older.

To put you back in a brand new, replacement car during the period you have GAP. For something you can buy for less £200 I'd say it's a no brainer.

At the end of the day all insurance is a gamble, it's entirely for you to decide whether it's worth the extra expense or not.

foxy-stoat

If you have new for old on your car insurance you wont need to worry about GAP insurance for the first 12 months.

After that you probably want GAP insurance, either back to invoice or the difference in replacement.

daveyjp

OP - If the car is a diesel please read and understand all the shortcomings with the engine and DPF system fitted to the car.

You don't want to be left with a £40,000 headache.

foxy-stoat

daveyjp wrote: »

OP - If the car is a [STRIKE]diesel please[/STRIKE] Landrover Discovery read and understand all the shortcomings with the [STRIKE]engine and DPF system fitted to the[/STRIKE] car.

You don't want to be left with a £40,000 headache.

I have corrected that for you !!!

daveyjp

I was minded to advise in that manner, but the DPF issue has been acknowledged by JLR as being poor and have produced technical bulletins which demonstrate how poor it is.

family4tunes

GAP insurance is claimable if something really goes wrong and can help to put you back a the starting point when replacing the vehicle without to much financial loss.

In theory it's good, but in practice its not that beneficial as its rarely claimed and the premiums paid just go into the ever bulging pockets of the insurance companies.

So if you can afford it, buy it if you fear you will have an accident whereby the car will be written off or damaged to an unusable condition during the term of the policy.

If not, save your money and use it to save for a nice holiday

roddydogs

Pretty obvious but DONT get the gap ins from the car dealer! It will be double the price.

AdrianC

legionare64 wrote: »

If car is written off what benefit would GAP insurance give me.

Gap insurance will either cover any shortfall between payout and finance settlement (irrelevant in your case) or will cover any shortfall between payout and purchase price.

I couldn't get discount on a replace ment so would expect insurance to pay £40k to replace in first year.

You want the insurer to pay you £40k for a car you're paying £30k for? Good luck with that...

Your best bet is to get a policy that includes new-for-old in the first year.

Danipat

Dont buy GAP from the dealer. You can but it online and it will be much cheaper! My dealer wanted £475, I found it online for £199