GAP Insurance

[eldar]

I'm getting a new car on a PCP deal over two years. If I like it I'll buy it at the end of the two years. The dealer mentioned I should get PCP in passing, but didn't give a price.

So is it a good idea, is it worth getting for PCP?

[Dave Hedgehog]

it is always worth getting GAP insurance if the insurance payout is likely to be less than the outstanding finance

dealer will sting your rotten thou

ala will do you a good deal, get return to invoice

http://www.ala.co.uk/

[Emubiker]

Probably more so than buying it any other way, as you will be in negative equity probably right up untill you wither buy it outright or hand it back or p/x it with a couple of months to go. If you don't have it and wrote the car off or had it stolen, you will always have to pay more than you get, before you have cleared it off....plus you will get more back ontop, which you could then use as a deposit on your next car. For me its a no brainer. Especially if its only £200-£300 or £5-£8pm more.

[Tom H]

Lots of alternative products available. Some gap insurers will only cover the shortfall in the finance. So if you have put a deposit down then this is unlikely to be effective as your repayments are effectively paying the depreciation.

Net result is you pay £300 for nothing and loose deposit. Also a 'decent' insurer if you are first owner / lease holder then you may get 'new car replacement' ... This means if a write off in first year then insurer sources identical car.

Therefore something like this is more suited ...

https://www.aplan.co.uk/motoring/tlp-insurance

[eldar]

Thanks, it seems fairly cheap, £250 for back to invoice over 4 years.

Do I understand this right? I buy a car for £30,000, take out GAP return to invoice. 3 years later it is written off for whatever reason. Insurance company pays me £15,000, GAP pays me £15,000, and I buy new car for £30k. Seems too good to be true!

[Emubiker]

eldar said:

Thanks, it seems fairly cheap, £250 for back to invoice over 4 years.

Do I understand this right? I buy a car for £30,000, take out GAP return to invoice. 3 years later it is written off for whatever reason. Insurance company pays me £15,000, GAP pays me £15,000, and I buy new car for £30k. Seems too good to be true!

Its not necissarily what the insurance company give but "Current Market Value". so if it is required, don't just accept what the insurance company offers, thinking to yourself - GAP will cover the rest. It Won't. So make sure you get current market value for your car, or call the gap provider and find out what they think it is worth, get that figure from your finance comany, then claim the rest back from GAP.

[rehab71]

GAP is well worth the money. 'dealers will sting you though' is a little harsh, he means 'dealers like to take a resonaable margin from it'

Just Google GAP and find a competative and quality product. Get RTI mind.

[CarCluster]

Just investigating this now. ALA looks pretty good at £112. Dealer is offering £250 and the finance company £287 (though this is deferred to the end of the 4 year term, which is convenient). Plus points are 120 to make the claim (apparently some are only 30 days) and free transfer to a new vehicle.