GAP Insurance

phill99

I brought a new van for £21k in 2014. Less than 2 yrs later a lorry side swiped me and wrote it off. I fought long and hard to get £11k out of the insurers (his insurers). So I was out of pocket as it was still on finance. So I was financially penalised through no fault of my own.


Bought a new replacement van for £23k. Took out Back to Invoice Gap insurance for 5 years for a tad over £300.


That really is a no brainer. For £1.15 a week over 5 years, I will always get a new van, regardless as to what my insurers pay out.


But shop around as my dealer wanted over £700 for the same cover.

jack_tyler

lopsyfa wrote: »

As someone who has just claimed on a gap insurance when a lorry went into the back of my car on the motorway, it will be madness not to buy GAP insurance for a new/nearly new car. No matter how careful you or your son is, the car can be written off by mistakes of a third party driver.

However, you don’t have to buy the GAP insurance from the dealership as it will be inflated. I bought mine from ALA (www.ala.co.uk) underwritten by AMS insurance services limited and the claim process has been painless so far.

Even though your insurance may provide new for old, you have to buy the gap within 60 or 90 days after purchasing the car (other companies may allow longer) but you can usually defer the policy to start after first year if your insurance covers the first year.

Get vehicle replacement or return to invoice GAP not just one to cover the finance shortfall.

Thank you for that. I have just had a conversation with the salesperson at the dealership, and he admitted that their GAP insurance is quite expensive, he also said that I could buy it cheaper elsewhere, but he said to make sure that I get combined GAP, as that will cover everything.

jack_tyler

Thank you everyone for your help with this. I have just done a quote on Total Loss Gap, and its £127 for the 3yrs, so definately a no brainer. Going to be setting that up soon. Thanks again everyone

Graculus2112

Just don't rely on motor insurers' new-for-old cover in the first year. If you're on a PCP, *some* finance providers will not accept a replacement car and will want a cash alternative instead and *some* motor insurers will only then pay market value, so you won't have GAP. This is also true if your car is written off and an alternative is not available (e.g. if it's become obsolete or a factory build may take months).



If you wait until 12 months is up, it's highly unlikely you'll be able to get GAP cover and even if you can, check that the underwriter isn't one of these unrated ones in Malta or Gibraltar (like Lamp Insurance, who went bust recently - the fifth in 3 years - forcing the broker (Warranty Direct) to cancel its customers policies).


Buyer beware - do your homework, check the underwriting and don't pay dealers' inflated prices.