Gap insurance

toadhall

I have just bought (on finance) a lovely brand new car. I have car insurance, but should I buy gap insurance and if so what percentage of the cost of the car should be it be?

Thanks

Scrapit

toadhall said:

I have just bought (on finance) a lovely brand new car. I have car insurance, but should I buy gap insurance and if so what percentage of the cost of the car should be it be?

Thanks

You probably should and cos its so cheap it makes sense to have it even if you never need it. As a percentage, no idea, depends on how much you paid for the car but you'll be paying a couple of hundred quid which isn't alot for what you get,.

ToxicWomble

Make sure you buy the correct type of Gap.

I think (could be wrong) that with finance on it then “return to invoice” is the type you need

neilmcl

Yes, very much so. GAP insurance can be got for as little as £100. I'd recommend going for a replacement vehicle product rathe than return to invoice.

Try the usual culprits, ALA, GAPinsurance.co.uk etc.

ToxicWomble

neilmcl said:

Yes, very much so. GAP insurance can be got for as little as £100. I'd recommend going for a replacement vehicle product rathe than return to invoice.

Try the usual culprits, ALA, GAPinsurance.co.uk etc.

Any particular reason for that Neil ?

just curious - sure you are correct

AdrianC

There's two types of gap.

The first just covers the shortfall from a payout to what you owe the financier.
The second covers the shortfall to the price you paid, or of an equivalent new car.

You tell us whether you think the premium is worth it... How many cars have you had written off in the past?

neilmcl

ToxicWomble said:

neilmcl said:

Yes, very much so. GAP insurance can be got for as little as £100. I'd recommend going for a replacement vehicle product rathe than return to invoice.

Try the usual culprits, ALA, GAPinsurance.co.uk etc.

Any particular reason for that Neil ?

just curious - sure you are correct

Any reason for what, whether he needs GAP or the type I suggested?

ToxicWomble

I think we both agree gap would be sensible.

The  type I meant (sorry)

neilmcl

ToxicWomble said:

I think we both agree gap would be sensible.

The  type I meant (sorry)

RTI will simply pay out on the original invoice price but car prices increase not to mention that you may have gotten a good deal in the first place along with carious dealer/manufacturer contributions which you may not get again. Replacement vehicle will make sure you have the funds to get a brand new, like for like replacement should you need to make a claim. Therefore replacement vehicle insurance is likely to pay out much more than an RTI product.

DrEskimo

I went with Total Loss Gap, as they only provide one premium which combines finance, RTI and vehicle replacement in one. You get whatever the highest is of the 3 (imagine most of the time it will be vehicle replacement).

You also don't have to worry about setting an amount. It covers whatever the gap is.

https://totallossgap.co.uk/

ToxicWomble

neilmcl said:

ToxicWomble said:

I think we both agree gap would be sensible.

The  type I meant (sorry)

RTI will simply pay out on the original invoice price but car prices increase not to mention that you may have gotten a good deal in the first place along with carious dealer/manufacturer contributions which you may not get again. Replacement vehicle will make sure you have the funds to get a brand new, like for like replacement should you need to make a claim. Therefore replacement vehicle insurance is likely to pay out much more than an RTI product.

Makes sense - thanks