for various reasons, mainly the fact that our savings are attracting a poor interest rate at the moment, we have decided to pay for the new superb with cash. what are you opinions on whether I still should take out GAP insurance or not ?

Cash or HP shouldn't make any differance. With GAP you are protecting your investment.

As far as I know -GAP insurance covers what you owe on HP verses the amount you're car is worth , and only works on HP deals .

GAP insurance from HC For You

What is GAP insurance?

In the event of your vehicle being declared a write-off by your Insurance Company because of theft or an accident, there could be a shortfall between the vehicle's current market value and the original purchase price. Our GAP Return to Invoice (RTI) Insurance pays you the difference between the current market value that your motor insurance pays and the original purchase price.

How GAP insurance works?

The shortfall could be a significant sum depending on how quickly your vehicle depreciates in value. GAP Insurance will bridge this GAP if your vehicle is ever written off or stolen, therefore giving you the peace of mind that you have not lost out financially and can afford to purchase an equivalent vehicle.

Gap Insurance :: We answer - What is & why buy Gap Cover, what if and can I

Can I take out Gap Insurance if I purchased my car from a Private Seller?

Yes you can. There is no increase in premium at all.

Not always the case. If you have return to invoice gap then it covers what an insurance company may payout if you have a write off against the original invoice amount.

Most insurance companies replace with new price in first year of ownership, NFU does it for two so in that instance the GAP insurance will not be required for the first one or two years of ownership

As far as I know -GAP insurance covers what you owe on HP verses the amount you're car is worth , and only works on HP deals .

No, it protects the difference between what you pay and what an insurance co will pay out. I never have cars on HP (so effectively pay cash) and have had GAP cover.

Most insurance companies replace with new price in first year of ownership, NFU does it for two so in that instance the GAP insurance will not be required for the first one or two years of ownership

That's right, many motor insurance companies now provide new-for-old cover within the first 12 months after a vehicle was first registered - although many restrict it to vehicles which you have owned from new... e.g. pre-registered vehicles don't always qualify.

Despite new-for-old cover being available from your motor insurance company, almost all GAP Insurance providers still require you to purchase a policy that runs alongside the new-for-old cover from your motor insurance provider despite the fact that a claim on the GAP Insurance policy during this period is extremely unlikely... even companies that allow you to purchase the likes of Invoice and/or Replacement GAP Insurance years after buying the vehicle, will back-date the start date of the policy to be the day you bought the vehicle, which is effectively the same thing.

--EDIT--

Commercial advertising without sponsorship within the forums is not allowed under the T&C of this site

Thanks - Moderating Team

--/EDIT--

Edited 2 January, 200917 yr by auroan

thanks for all your advice. I am making enquiries with my insurance company right now