GAP Insurance: who to buy from and cost-help please

[pipsyp]

I tend to just buy the dealer offered GAP RTI cover. Its not cheap for sure but you can spread the cost on your finance whixh you cant do with 3rd party policies, also with the cover I have its administered by the dealer group I bought from so am sure should the worst happen they'll do their bit to ease the pain of replacing the vehicle (and I suppose another guaranteed sale?).

I think if you purchase a car on PCP youre bonkers not to buy RTI GAP cover; as you could be left with a huge debt to the finance company without it.

[WeeDee]

I got 3 years Gap Insurance thrown in free from the dealer - worth a shot and a bit of haggling!

[M12MKD]

On the Citigo I got "GAP" through Autotrader. I think about £160ish for 4 years cover. On the Octavia (expires next month) it was about £280ish for 4 years. I cannot of the top of my head remember who with.

 

But read the policy before you buy because there is alot of get outs (like all insurance).

[classic]

I get the whole GAP concept but it also seems to be a contradiction. Eg I have no money but can buy a car for £20k on pcp. The contract tells me its predicted value in 3 years will be £8k, so I have accepted it will lose £12k value over the 3 years. If it doesn't get written off I lose £12k, if it does get written off (without gap) I get an insurance payout and settle the finance and have no money extra but that is where I was in the first place when I bought the car....or do I not get it ?

Edited 6 March, 2014 by classic

[sinima]

I went with ALA, Approx £150 for 3 years but got a 10% discount

[WeeDee]

I get the whole GAP concept but it also seems to be a contradiction. Eg I have no money but can buy a car for £20k on pcp. The contract tells me its predicted value in 3 years will be £8k, so I have accepted it will lose £12k value over the 3 years. If it doesn't get written off I lose £12k, if it does get written off (without gap) I get an insurance payout and settle the finance and have no money extra but that is where I was in the first place when I bought the car....or do I not get it ?

The problem lies in the  non-linear depreciation. So for most of ur PCP term what you owe is more than the car is worth. I never used to bother with it either until I was stung:

 

Bought car for 12000

Total loss 6 months later, insurance pay out: 9600 (after a fair few arguments)

Total owed minus interest or "Settlement Figure" on PCP after 6 months, approx.  11400

Shortfall: 1800!

 

 

Its the shortfall you're taking the GAP insurance out for.

 

Like you say yourself, once you get the towards the end of your PCP term, a total loss payout gets closer to the settlement figure and seems pointless but because you take such a hit on the car the moment you drive it off the forecourt the value of your car is far short of the settlement figure for a LONG time. GAP can cover the shortfall.