Gap Insurance, Is it worth it?

[adamc260]

If your buying a new or fairly new vehicle its defo worth it!!

Gap insurance can range from 1 -4 years with claim limits from £2500-£25,000 usually.

There are 3 types of Gap Insurance

Return to Invoice

Outstanding Finance

Replacement Vehicle

Return to Invoice

You buy a car for £10,000.

It is written off 4 months later and you get the market value of £8000.

The gap insurance pays the £2000 difference topping it up to £10,000.

Outstanding Finance

You buy a car for £10,000.

It is written off 4 months later and you get the market value of £8000.

You took the entire £10,000 on finance but with interest need to pay back £11,000 so you are still expected to foot the £3000 bill. The gap insurance company will pay the £3000.

Replacement Vehicle (Best & Most Expensive Option)

You buy a car for £10,000

It is written off 4 months later and you get the market value of £8000.

To buy the same car now is... £12,000.

The gap insurance pays you £4000 to cover the loss in value and the extra required to get a similar car.

ALL FIGURES ARE BEFORE ANY INSURANCE EXCESS IS DEDUCTED - A LOT OF GAP POLICIES WILL COVER AN EXCESS UP TO £250

You also want to make sure the gap policy covers theft using the vehicles keys (as that are how a lot of modern vehicles are stolen!

Hope this helps

Some Gap Insurers

www.ala.co.uk

www.click4gap.co.uk

www.surfandprotect.com

www.car2cover.co.uk

Edited 19 May, 2011 by adamc260

[kevberlin]

That is the best explanation of gap insurance I have ever seen. Top work by Mannyo.

I have car insurance that actually gives me market value of the vehicle if stolen or written off in the first two years. Most companies only offer one year. If you have no finance, that may be a sensible option to pursue.

[mikephillips]

seems pointless to me. you might as well buy a second hand 4 month old one for £8,000

[kevberlin]

seems pointless to me. you might as well buy a second hand 4 month old one for £8,000

Afraid you've missed the point. Gap is available for used cars too. For example, what if you'd bought second hand for £8k, but used finance to cover £6k?

[Stoofa]

seems pointless to me. you might as well buy a second hand 4 month old one for £8,000

Or - with Gap, you get to go out and buy another brand new car.

I've got a 4yr GAP policy on my new Octy vRS.

If the worst should happen and the car written off within those 4 years I should get enough back from insurance/GAP to buy a brand new car.

So pointless?

[Red Rocket]

Or - with Gap, you get to go out and buy another brand new car.

I've got a 4yr GAP policy on my new Octy vRS.

If the worst should happen and the car written off within those 4 years I should get enough back from insurance/GAP to buy a brand new car.

So pointless?

I agree. I've gone for a 3 year replacement policy with Surf & Protect. You have to pay up front but if, like many, your insurance protects you for the first year you can defer the start to the second year.

[adamc260]

Aw I got a sticky

[Swindon Dave]

My tip would be if you're thinking of getting it off a dealer when you buy the car definitely barter:

I recently bought a nearly new Octavia from a dealer. They offered me £50 discount immediately off their so called full price of £450. I said I'd do some investigation and confirm when I picked the car up.

They started on about it again when I went back in. I advised I'd seen quotes online of £180 thinking that would stop them dead but... they matched it!

[adamc260]

My tip would be if you're thinking of getting it off a dealer when you buy the car definitely barter:

I recently bought a nearly new Octavia from a dealer. They offered me £50 discount immediately off their so called full price of £450. I said I'd do some investigation and confirm when I picked the car up.

They started on about it again when I went back in. I advised I'd seen quotes online of £180 thinking that would stop them dead but... they matched it!

Tis a con, the policies dealerships offer aren't nearly as good as the ones you can get online.

[RS Mac]

I work for Border Cars, and our Gap Insurance policies are as good as any online policies you can buy!, not all main dealers are alike

[Alexei Egg]

I still don't get it. Taken to its logical conclusion you could get insurance to cover you for depreciation (or maybe if worse than predicted by e.g. CAP). Isn't that all part of the risk inherent with car ownership?

[Auric Goldfinger]

If you Insure through Saga, like me and the Wife, yes we are oldies, Gap is part of your insurance for 2 years ( yes it's free) provided the car is new

[Panther_uk]

What's the best place to get GAP insurance ? Had my car 2 weeks.

[Strapper]

I regret agreeing to Gap Ins.in July 2012 with Dealer Blade Skoda Bristol;I have not received a copy of a Policy yet?.Can I legally claim a part Refund?.Strapper as I do not wish to continue with Gap.Ins. Strapper.

[nebbers]

Will deffo get GAP for my new yeti. As I will be paying for the car over 4 years, I will get replacement vehicle cover for 4 years. Premiums only look arount £200.

Question I want to ask is on' scratch and dent' insurance - what are the best buys/options? I am sick to death of picking up small dents from suparmarket car parks!

[ksr]

Just bought a 10 month old Superb.

One dealer offered gap insurance at £360, which I was not interested in.

Ended up buying from another Skoda dealer. Far better deal on the car, and 3 years full invoice gap repayment, arranged through Hyundai and underwritten by Santander for £150 (12 monthly direct debits at no extra charge).

Basically, if my car gets written off at any point over the next 36 months, the policy pays out the difference between the insurance settlement pay out and the £10995 I paid for the car.