My dealer tried to sell me gap insurance for £295 - thought I could do better than that online - but wonder has anyone got any suggestions on this score? The cheapest is not necessarily criteria - better that it be a household name and reliable. Also I understand that despite saying they pay out the invoice price, they actually pay 105% of Glass's price - misleading.

Any thoughts most appreciated.

. Also I understand that despite saying they pay out the invoice price, they actually pay 105% of Glass's price - misleading.

Any thoughts most appreciated.

Never heard of that tbh, mine was purchased through the dealer and when the papers came back it was return to invoice with the invoice price stated on the policy.

Edit, after a quick search the best I can find is the 105% you mention is the maximum the GAP will pay out refering to the cars value at the time of purchase so it is in the case of a second hand car, so if you buy a car for £5.5 K but at the time Glass's says it is worth only £5K then your gap would only make your payout upto £5.25K. In the case of a new car then the guide price is of course the RRP, excluding OTR charges. AFAIK

Edit 2 even if it means the maximum the Gap insurance will pay out is 105% of the cars current value at the time of the accident you will still end up with your full outlay returned so long as it as still retained 48% of its value at the time of the wo. ie £20k invoice, your car insurance pays out £9.8k Gap would pay out £10.2K, and still be £90 under its ceiling

My dealer tried to sell me gap insurance for £295 - thought I could do better than that online - but wonder has anyone got any suggestions on this score? The cheapest is not necessarily criteria - better that it be a household name and reliable. Also I understand that despite saying they pay out the invoice price, they actually pay 105% of Glass's price - misleading.

Any thoughts most appreciated.

GAP insuarance is a very tidy little earner for dealerships and is usually sold for far higher sums than it can be bought for elsewhere. I do not have a particular provider to recommend, however, I do know that some car insurance now includes up to two years new for old cover making GAP insurance largely redundant for those keeping the car for a shorter term. NFU mutual is the company that comes to mind. It may be cheaper to change insurer than buy a GAP top up?

I used to sell GAP up until about five years ago and that was a return to invoice policy, not a glass's guide based payout. I cannot see the point in paying for cover that giver you Glass's guide + 5%.

I'm a born sceptic when it comes to additional insurance/extended warranties, but when I got my new car in September I bought gap insurance through this company (Google search, seemed like the best cover/price at the time).

https://www.directgap.co.uk/products_return_to_invoice.aspx

3 years cover (return to invoice) on a £19k car for just over £100, didn't seem too bad and much cheaper than the dealer offer. My mate paid £475 for similar cover through Audi! :S

I guess the cons are the usual with any insurance, you're paying for something you hope never to use, but I was worried about the potential short fall between a normal insurance pay out value and any outstanding finance.

Edited 1 February, 201016 yr by HKPhooey

NFU provides 2 yrs GAP as part of their plans, as well as off road cover.

By off road I mean anywhere not on the legal highway... a 'green lane' or byway (with vehicular access) is still part of the road network and thus covered by normal ins.

Most insurers will not cover you for off road driving unless you pay extra. Worth checking if you want to take your Yeti into the muddy, splashy bits

Never heard of that tbh, mine was purchased through the dealer and when the papers came back it was return to invoice with the invoice price stated on the policy.

Edit, after a quick search the best I can find is the 105% you mention is the maximum the GAP will pay out refering to the cars value at the time of purchase so it is in the case of a second hand car, so if you buy a car for £5.5 K but at the time Glass's says it is worth only £5K then your gap would only make your payout upto £5.25K. In the case of a new car then the guide price is of course the RRP, excluding OTR charges. AFAIK

Edit 2 even if it means the maximum the Gap insurance will pay out is 105% of the cars current value at the time of the accident you will still end up with your full outlay returned so long as it as still retained 48% of its value at the time of the wo. ie £20k invoice, your car insurance pays out £9.8k Gap would pay out £10.2K, and still be £90 under its ceiling

Thanks very much for your input - has convinced me it's worth doing it!!