Gap insurance

Joyleach

I’m expecting to take ownership of a new Toyota Yaris in a couple of weeks and have been quoted £419 for three years cover from the dealer. If my car insurers, Churchill, provide cover for the first year, will I still be able to get Gap cover after then, say for another two or 3 years, or do I have to take out a policy when I get my car?

Noggin500

Hi Joyleach

£419 for Return to Invoice GAP insurance is a typical motor dealer price, but it's *way* more expensive than you should be paying. You'll find policies of equivalent quality at maybe half the price by looking online. Dealers don't have their own GAP policies - they're all farmed out to third parties, but the sales staff and dealership will want high commissions, hence the inflated prices.

You have to be really careful with your Churchill cover. Are you buying your car on a PCP? If so, you should be aware that most finance companies will *not* accept a replacement car from the motor insurer in the event of a write-off, and will demand a cash settlement instead. Under these circumstances, many motor insurance companies will only pay out market value, not invoice value, so you *may* not have the cover you think you do.

If you decide to wait a year before you look for GAP, you may be disappointed. Most GAP providers have a 3-6 month window to take out cover. There are a small number that will go up to 12 months, but check the underwriting carefully, as five unrated GAP insurers have gone out of business since 2016 (3 Gibraltar-based and 2 from Denmark, and there are more unrated underwriters based in Malta).

Have a look for A-rated underwriters based in the UK ideally and you'll find yourself a much better deal than going through Toyota.

Sandtree

Noggin500 said:

You have to be really careful with your Churchill cover. Are you buying your car on a PCP? If so, you should be aware that most finance companies will *not* accept a replacement car from the motor insurer in the event of a write-off, and will demand a cash settlement instead. Under these circumstances, many motor insurance companies will only pay out market value, not invoice value, so you *may* not have the cover you think you do.

You also have to be careful that some GAP insurers will not cover a GAP caused by you taking a cash settlement when your policy allowed for a replacement vehicle

Penelopa.Pitstop

There might option on Gap Policy to delay start for a year due to new for old condition on your insurance policy. So you can buy it now, but it will not start until next year.

To be honest, 3y gap policy sold by specialist company will be cheap, so you may buy it from the first year.

MILLIEMOGS

Don't buy gap insurance via the dealer, sort out your own. Just make sure the cover meet your needs

It will probably be about a third of the dealers price. When I got my brand new car three years ago the dealers quoted £330. I went direct and paid £99 and that wasn't even the cheapest policy.