Gap Insurance

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Information needed if anyone can help ?

Just in the process of buying a nearly new car and have been advised to get Gap Insurance.

I understand the principles of what this is for and its benefits, but does anyone know a good company to use and the the best value policy to go for.

blue_haddock

The dealer will not be the cheapest for the cover - have a quick google and you should find various providers.

Remember there are two different types of GAP insurance, one covers the difference between what you owe on finance and the insurance settlement whilst the other is a much better option which pays out the difference between the insurance settlement and the original price paid on the invoice.

bunking_off

You've obviously decided to go for it so I shouldn't try to dissuade you.

However, this stuff has always come across to me as just about the worst value insurance there is.

My experience has been that the cost is approx 20% of the cost of the main insurance policy (e.g. on a high value car I was quoted £450 for 3 years cover). For that, you get something which pays out perhaps £5000 (ie on an average car perhaps a third of the max payout on the main policy, for my case the payout would have been about one sixth of the main policy payout), but this will only kick in where the car is a total write off. How often are cars written off in the first 3 years of their lives? It strikes me as stunningly bad value for money.

This said, if you must, agree with blue_haddock : shop around and don't take the dealer's offer.

italiastar

Are you, have ever been or related to someone who has worked for the Civil Service or Post Office? If so PM me as the CSMA is very good.

bunking_off

italiastar wrote:

Are you, have ever been or related to someone who has worked for the Civil Service or Post Office? If so PM me as the CSMA is very good.

Funnily enough, I nearly said that myself but thought it might be too restrictive. This said, their "criteria" are very lax....e.g. if you're related to someone who used to work for a private company that used to be state owned, that's good enough for CSMA to take you. Their GAP insurance product does seem to be one of the cheaper ones.