Gap insurance - worth it?

spirit

Hi

I've looked at this further and you're right misterh, the Shortfall company is better. they actually cover not only any outstanding finance owed but the difference between the book price of the car at the time of write-off and the invoice price of the car. I guess this is more like a new for old type cover - when added to your insurance pay out so you don't end up forking out the difference yourself to replace the car. I bought the 2 year plan at £102 since i don't plan to keep the car longer than 2 years.

thank you for everyone's input on this thread.:T

cowbutt

If I were buying a brand new car, I would probably consider gap insurance as the depreciation on such vehicles tends to be quite steep. If I needed to use a loan to buy the car in the first place, I'd seriously consider such insurance. Obviously, though, I'd shop around for the best deal.

As it happens, I buy older cars (my take is that the sweet spot is about 5-6 years old; old enough for most of the depreciation hit to have been taken by previous owners, but not too much opportunity for the car to have been wrecked) with cash, and so I try to pay as little as possible to scum-sucking insurers. I'm considering a fairly big voluntary excess on my next renewal, too. :-)

Stinkybell

I'd defo go with the gap insurance - OH bought a special edition Astra with lots of trimmings and was over £4000 out of pocket when he wrote it off just over a year later (his first ever accident). Ended up having to buy a micra and taught him not to waste money on nice cars any more!!