"Gap Insurance"

in Motoring
20 replies 23.1K views
I am about to buy a new Polo and have been offered "gap insurance" a one off payment of £299. it means if my car is written off within 3 years VW will top up my insurance payout and replace my car with a brand new model. Sounds great in theory, but is it worth it? I am buying the car outright from new, not on finance.


  • vikingaerovikingaero Forumite
    10.9K Posts
    Part of the Furniture 10,000 Posts Combo Breaker
    Once again the chain of sales staff is taking it's cut.

    Googling gap insurance brought up one company as an example:


    If you click on purchase you can see examples of premiums. I'm guessing that you're paying around £10k for your Polo and that in 3 years it will be worth £5k, so you need £5k of cover. The premium for 3 years cover is £122.

    Most insurance companies replace a car that is covered fully comp with a brand new car in the the first year of insurance unless the mileage is stupidly high.
    The man without a signature.
  • T.F.S.B.I.G.W.S.T.F.S.B.I.G.W.S. Forumite
    307 Posts
    Part of the Furniture 100 Posts
    I was offered this when I bought a new Toyota and I thought it was a rip off. Car dealerships get pound signs in their eyes.
  • highguyukhighguyuk Forumite
    2.8K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    I'd avoid. If you want it though, as demostrated above, you can find it much cheaper than your being offered it.
  • moonrakerzmoonrakerz Forumite
    8.7K Posts
    1,000 Posts Combo Breaker
    It's just another product the Insurance Companies, and people selling them, are trying to persuade you that "you can't do without".
  • mjr600mjr600 Forumite
    760 Posts
    Its a money making exercise for the dealership, buy it cheaper elsewhere or don't bother.

    Likewise point of sale amazing paint sealant treatments for £199 provide little that a decent coat of polish/wax and elbow grease wouldn't give you.

    It's also worth noting that on a new car a number of insurers include a clause that if within the vehicles first year it is damaged beyong economic repair they will provide another new car. If this is the case with your insurer then the first year of GAP insurance would be a waste anyway.
  • We paid for this insurance when we bought our old car. When we said we didn't really want it the salesman told us that we would then be charged a higher loan rate and did all his razzle dazzle with numbers on a piece of paper in front of us. We ended up paying the insurance (which was never needed by the way) - I've come to the conclusion that I'm too trusting!
  • bunking_offbunking_off Forumite
    1.3K Posts
    You should have taken the deal, walked away then cancelled during the cooling off period...
    I really must stop loafing and get back to work...
  • louidoglouidog Forumite
    517 Posts
    I got this thrown in for free on my latest car.....but feel sure I paid for it somewhere along the line! :confused:
    My second favorite household chore is ironing. My first being, hitting my head on the top bunk bed until I faint.
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  • jstallanjstallan Forumite
    324 Posts
    Part of the Furniture Combo Breaker
    Tell them that you can get it cheaper (and show the quote).

    I did this at my local Vauxhall dealer and they more than halved the price (from £300 to £144).
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