Gap insurance

MysteryMe

If you do decide to buy GAP insurance there is a 25% off code on the MSE page

https://www.moneysavingexpert.com/insurance/gap-insurance/

gord115

I bought a two year old Golf R 3.5.years ago.

I took out ALA gap insurance(they do a discount with Pistonheads forum)

I got a four year "Vehicle replacement" policy with them for less than the dealer could do a two year policy! 

A two year old Golf R is now about £3k more than I paid for mine.(Prices have gone up a lot)

If I was to get it written off I would get paid enough to replace it with a two year old car at no extra cost to me.

I think it was well worth it-Just in case!

BOWFER

jimjames said:

Personally I can't see the point of Gap insurance in this situation. If I buy a car I accept that it will depreciate and if I need to replace it I will have to pay more money. Insurance for this is over emphasising the risk of total loss of your car, the risk is pretty low and as with all insurance the company selling are the ones that make a profit. Yes if it happens to you it will be unfortunate but out of all policies very few will need to claim. 

Snap, never had GAP and never will.
The margin on it was demonstrated to me when they tried to sell me it on my latest car, the figure going down and down every time I said no.
I'm sure we got from £300 down to like £130.
Still no, but how many people pay the £300?

Grumpy_chap

gord115 said:

I bought a two year old Golf R 3.5.years ago.

I took out ALA gap insurance(they do a discount with Pistonheads forum)

I got a four year "Vehicle replacement" policy with them for less than the dealer could do a two year policy! 

A two year old Golf R is now about £3k more than I paid for mine.(Prices have gone up a lot)

If I was to get it written off I would get paid enough to replace it with a two year old car at no extra cost to me.

I think it was well worth it-Just in case!

If price has gone up, wouldn't you still have £3k shortfall?

DrEskimo

Grumpy_chap said:

gord115 said:

I bought a two year old Golf R 3.5.years ago.

I took out ALA gap insurance(they do a discount with Pistonheads forum)

I got a four year "Vehicle replacement" policy with them for less than the dealer could do a two year policy! 

A two year old Golf R is now about £3k more than I paid for mine.(Prices have gone up a lot)

If I was to get it written off I would get paid enough to replace it with a two year old car at no extra cost to me.

I think it was well worth it-Just in case!

If price has gone up, wouldn't you still have £3k shortfall?

No, as the vehicle replacement GAP would cover the shortfall between the insurance payout (market value at time of accident) and the cost to replace his car with an identical one at the time he purchased it.

Return to invoice GAP would leave him still £3k short (but obviously still better off relative to no GAP at all).

Grumpy_chap

Well, I am even more confused.

So, there is basic "GAP" to pay-off outstanding finance above insurance payout in the event of total loss.

Then there is "Return to invoice" GAP to give you back the amount you originally paid in the event of total loss.

Then there is "Vehicle Replacement" GAP.  This, to me, sounds like you have a 4-yo Golf R at the time of the total loss, so it gets you another 4 yo Golf R.  The other suggestion is you bought a 2 yo Golf R, total loss at 4 yo, so they get you back to a 2 yo Golf R.

The latter two of these look rather open to fraud in my book as the insured is better off following the total loss incident than prior.