GAP Insurance - Do We Need it?

jimbo6977

insurance companies very rarely pay out a far market value, they typically give you the lowest trade price, which means you can't feasibly buy the same spec car to put you in the same position. It takes loads of back and forth and arguing to get anywhere near a fair payout.

Maybe some insurers work like this, but the ones I've worked for were customer focused and made sure I was too busy to bother with any such messing around.

GAP negates any need for this, and has the added bonus of covering depreciation.

If you agree a low-ball pre-incident-value for your vehicle, the GAP insurer would be within their rights to make their own assessment of the correct value and make their own settlement on that basis, potentially leaving you short - which is why a lot of GAP contracts allow the GAP provider to take over the negotiations on your behalf.

DrEskimo

lopsyfa wrote: »

You can do better than that price. I purchased GAP, from https://www.ala.co.uk/, with maximum benefit of £15000 for £160 in August-2018 and ALA also price match.

Also, for £9k purchase price, I don't think the GAP should cover more than £7k except you expect the car to be worth less than £2k after 3-5 years the GAP will be covering.

ALA only cover used cars for 3yrs for Vehicle replacement cover. The above is a 5-year return to invoice/vehicle replacement cover with no limit on the claim amount.

DrEskimo

jimbo6977 wrote: »

Maybe some insurers work like this, but the ones I've worked for were customer focused and made sure I was too busy to bother with any such messing around.



If you agree a low-ball pre-incident-value for your vehicle, the GAP insurer would be within their rights to make their own assessment of the correct value and make their own settlement on that basis, potentially leaving you short - which is why a lot of GAP contracts allow the GAP provider to take over the negotiations on your behalf.

Yes I would hope some are fair, but I've read many stories on car forums about getting poor valuations, leaving them unable to buy the same spec/year/model/mileage of the car to put them in the same position as before the crash.

As you say, having the GAP company haggle on your behalf is a welcome bonus!

lopsyfa

DrEskimo wrote: »

ALA only cover used cars for 3yrs for Vehicle replacement cover. The above is a 5-year return to invoice/vehicle replacement cover with no limit on the claim amount.

That is not true. The policy I bought was for a used car, return to invoice, for 4 year. They were also happy to cover for 5 years.

DrEskimo

lopsyfa wrote: »

That is not true. The policy I bought was for a used car, return to invoice, for 4 year. They were also happy to cover for 5 years.

Well it must have changed since you took out your policy:

"Our Vehicle Replacement + GAP insurance policy can be purchased for up to a maximum of 3 years.

Our Back to Invoice + and Agreed Value GAP insurance policies can be purchased for a maximum term of 4 years."

https://www.ala.co.uk/faq

So it is true...

I also don't understand you insistence on it being cheaper?
A direct comparison of a 3yr vehicle replacement cover on a car value of £9k from ALA is £171.60 (including the PISTON12 discount code).

Through TLG it is £103.55.

And TLG has no claim limit, whereas ALA has £5,000 for the GAP, and £2,500 for the replacement vehicle excess amount.