GAP Insurance (Asset Protection Policy) - Is it worth it?

alexnznz

I am buying a car from Cargiant – Peugeot 607 05 reg, 85,000 miles. The full price is £7k and I am paying in cash.

Cargiant are offering GAP Insurance (Asset Protection Policy) from AA at the price of £299 for 3 years.

This insurance will cover the difference between the price I am paying for this car now (£7k) and the amount my normal insurance company will pay out if the car is written off during these 3 years.

My questions is:

• Is it worth it? Do I need this cover at all?

Any advise/views/experiences are very much appreciated.

DropDebtFred

I've just bought my wife a new Toyota Aygo from a main dealer, and was offered Gap for £199 to cover the £7500 full price at the time I paid the deposit. I said i'd think about it. I did a search on the internet and found I could get the same oover for £130. I told the salesman at the time I paid the balance and collected the car, and he matched the price, no questions asked.

So, if you consider you need this, I suggest you shop around or talk to CarGiant.

Hope that helps!

MadAboutSales

THey offered me gap insurance... it would have cost an extra £240 for a car of £4300. The way I see it, if your car gets stolen in 3 years time and is worth £2 or 3k less, you can use the payout as a deposit on a newer car.

To me it makes better sense to drive carefully and not park your car in dangerous places.

MadAboutSales

My opinion: not worth it.

tlck9

I would have totally agreed with the last post, as I have bought many cars and purchased the GAP insurance and always considered it a waste of money....\
until now

Our Van was recently written off in an accident, an accident we werent even involved in, where the garage crashed the vehicle while on a testdrive

The book price was way below the actual replacement value of the van, with Gap this would have paid a sum of money to cover this.

We are now out of pocket - so the van I'm buying now is going to have GAP, although not from the dealer who quoted £399

Anyone got any decent deals they have come across, much appreciated if you have

leftfield20

In my opinion it might only be worth it if you are getting a car on finance. If it gets written off you will have to pay the shortfall for something you don't have. Since you've paid in cash, although you would be losing out, at least you could just get a cheaper car and not have a finance agreement to settle.

Plus we always expect cars to naturally depreciate in value anyway.