"Gap Insurance"

in Motoring
20 replies 23.1K views


  • peterg1965peterg1965 Forumite
    2.1K Posts
    Part of the Furniture 1,000 Posts
    I think you will find that it is a legal (FSA) obligation for the dealership to offer you this sort of financial product. I would never buy GAP from a dealer, it is vastly inflated in price. I have previously used https://www.click4gap.co.uk go through a cashback website and you get £22.50 back too.

    Also be aware that there are 4 different types of 'GAP' insurance. Click4Gap explains them all. The best one is RTI - Return to Invoice.
  • zappaheyzappahey Forumite
    2.3K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    peterg1965 wrote: »
    I think you will find that it is a legal (FSA) obligation for the dealership to offer you this sort of financial product.

    I would be very surprised if that were true.

    In fact a very quick Google finds this "Salesmen use legal compulsion ruse to flog car cover" http://money.guardian.co.uk/insurance_/motor/story/0,,2030320,00.html
    What goes around - comes around
  • markswardmarksward Forumite
    258 Posts
    check out click4gap and go through rpoints (or quidco) can't remember which.
  • Hermione54Hermione54 Forumite
    176 Posts
    Wait a year and then take Gap from an independent source. Almost all decent comprehensive policies will reimburse the full cost of replacement for the first year anyway (but check!)
  • bowlhead99bowlhead99 Forumite
    12.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    Chaser, your first ever post on this site sounds suspicously like an advert - work for them by any chance ? I like the cross selling of the tyre insurance too... Also,
    chaser377 wrote: »
    they use the biggest company to underwrite their cover. They use Hitachi. Some use AXA who are small by comparison

    Yeah, Hitachi is the biggest name in insurance, right... Hitachi Capital UK, the UK consumer finance arm is a listed company worth about £100m, now mostly owned by Hitachi Capital in Japan, again a listed company worth a billion or so. Of course there are other bits of Hitachi that do things other than financial services (eg. making computer chips etc).

    Whereas AXA is an insurance and financial services giant worth about 45-50 billion? I am not quite convinced that if you bought gap insurance from AXA they wouldn't pay out because they had gone bust. They're rather more famous for their insurance than Hitachi, I'd suggest.

    I have nothing against car2cover but when buying insurance from a dealership or anywhere else, I recommend cutting through the sales patter (buy now, "you would be dumb to do it later" says Chaser377), reading the small print, and deciding for yourself if it's something you'll ever use.
  • Hermione54Hermione54 Forumite
    176 Posts
    I agree that Chaser's post does come suspiciously close to advertising, which, of course, is not allowed on this site.
  • saxmundsaxmund Forumite
    197 Posts
    Think about it. In 3 years time you will probably be thinking about replacing your car, so hopefully will have thought about how you will finance it. If the car is written off and you only get market value, you are in no worse position than you would be if you traded it in. If you don't want to replace your car in 3 years then if you write it off, you will get enough on the insurance to be able to buy a 3 year old Polo so like for like.
  • Of course if you insure with NFU you get 2 years new for old anyway...just my tuppenceworth
  • These insurances are regulated by the FSA and if the dealer you are buying them from offer them, then they have to legally offer it explaining the key features etc. You don't have to buy them, but you will probably have to sign a declaration to say you have been offered it but decided to decline.

    Thats exactly what I did. I declined my dealers offer ( which was high ) and purchased through www.car2cover.co.uk. They were helpful, but most of all, really competitively priced.

    Is gap worth it?

    For the customer who took it and didn't need to use it I would say lucky them !! (they haven't had to go through the trauma & stress of a toal loss but always had the peace of mind that if the worst did happen, they would be able to buy a new car again without worrying about the finanacial loss associated with write-offs)

    For the customer who took it and did need to use it - their opinions speak volumes! I knew a lady who owned a BMW Z4 and wrote it off. Her motor insurance left her approx £9,000 short of what she had originally paid for it. However she had taken gap and so she received a cheque for £9,000 from them which meant she could go and buy a brand new Z4!!!

    I personally cant afford a financial loss if my car was written off, so for me a one off payment of £130 for 3 year cover is worth the peace of mind that gives me.

    You are extremely poor at advertising without it looking like an advertisement. Go away and practice more.
  • AudbodsAudbods Forumite
    3 Posts
    I personally think that GAP insurance is worth it. I have just had my car declared a total loss today and luckily I had taken out GAP insurance when I bought the car second hand from a dealer (2 years and 11 months ago). However, be aware that the GAP insurance will only pay out the difference from top book price, usually Glasses Retail Guide which will be higher than what your car will likely be valued at by your insurer. In my case the value of my 7 year old Zafira in Glasses Retail Guide is £3825 but my insurer is only paying me £3055. I can't get either to budge so I will only get £2670 from my GAP insurance and £3055 less £150 excess from insurer. Result is I will have £5575 to spend on another car which is £920 less than my original purchase price of £6495. Having said that, the £200 I spent on the GAP has still been well worth it as I will be in a position to replace my car with a slightly newer one which I wouldn't be able to do without the GAP.
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