GAP Insurance

[Big Ry]

I'm in the process of sorting out the GAP (return to invoice/replacement) cover for the SP10.

I can get 5 years and £50k cover from gapinsurance.co.uk for £444. Just wondered if anyone has used them for cover and also whether anybody has had the misfortune to have to claim on GAP cover and how it went.

I'm not a risk averse person but for that level of cover it seems a little silly not to really, just on the off chance that someone in a Corsa t-bones me when i'm filling up

Edited by Big Ry on Friday 3rd April 19:13

[Big Ry]

DB4DM said:

Presumably GAP insurance is only useful for a depreciating asset?

Yes and no.......

Remember that traditional insurance will only pay out a trade value on your car, so be it a DBS or a V12VR, they're still going to give you a good 10 grand less than what you will pay to replace it with the same thing. As the GAP insurance will pay out the difference between the insurance and the replacement value, it means that if I smashed it up in 4 years time, I'd end up with the funds to buy the equivalent car exactly as it was when I bought it. So a 9 month old Vantage (or what will be a vantage replacement), even if the cost to buy such a vehicle is more than I paid for mine. That 5 year peace of mind for £450.....seems a bargain to me.

Obviously conventional GAP insurance is pointless if you're talking about a classic DB4/5/6 etc, as i'm sure that would have a guaranteed value for insurance purposes anyway.

[Big Ry]

AMDBSNick said:

Traditional insurance will replace "like for like"

GAP was traditionally designed to cover the difference between used vs new price but now has many versions.

Best check the facts Big Ry

I agree with what you're saying re like for like, but surely the insurer is always going to start at trade, you at retail and the two of you will need to meet somewhere. Obviously if you have an agreed value then that's different.

So the GAP i'm about to take out covers me for a replacement vehicle (not return to invoice, but actual replacement cost) of the same or equivalent spec, age, condition and mileage as of the date that I take the policy out, regardless of whether that replacement would cost more than what I originally paid. So yes, if in 4 years my car is only worth 50k, but to buy a 9 month old Vantage (or whatever it is at that time) costs 95k, then the gap will pay out the 45k difference (up to a maximum of 50k). I'm happy with the small print (standard stuff like the insurance is void if I smash it on a track). This is how I understand it anyway, but more than happy for someone to point out if I'm wrong.

https://www.gapinsurance.co.uk/policydocs/Replacem...

I really just wanted to know whether anyone recommended any particular insurer etc.

[Big Ry]

OK, so using shortfall.co.uk it brings down a 5 year policy to £414, that's less than a tank of fuel a year.

I appreciate cars depreciate and when I come to sell it i'm OK with that. What i'm not keen on is being forced to have to accept say 50-60k when I didn't even want to change the car (assuming it's stolen or smashed).

We all know that it's VERY easy to write of something like an Aston or Ferrari. It doesn't need to be a huge smash at all due to parts and labour costs. Last year I needed a new grill, grill mount and bonnet respray......that came to just shy of £5k (and that wasn't Works, it was Chiltern). At the same time there was an 4.3 V8V in there that had been rear ended at a roundabout. Looked pretty superficial, creased tailgate, new bumper etc. The cost was I am told just over £12k. The guy wanted a hire car but his insurer told him that if he insisted on an Aston hire car they would write the car off due to cost.

My point being that you could cause £30k+ of damage without any problem at all (carbon splitter for starters), which on a 2-3 year old car would probably put you in total-loss territory. Even more so, a relatively minor prang would write off a 4-5 year old Vantage I'd have though.

It works for me, but I appreciate not for others.

[Big Ry]

Jonsv8 said:

You are my friend the only one that matters on this.

Indeed I am, just always keen to hear others opinions etc (as I have done), for a sanity check if nothing else

[Big Ry]

I think I'm looking at this from a different angle though to most posts on here.

I'm not too worried about my insurer not paying me market value, I have no doubt that they would (with possibly some haggling) pay me out market value which is fine. I'm taking it though from the angle that if I did stack it or it vanished in 3-4-5 years times, then on top of market value from my insurer (say 40-50k), I'd also be in line for a pay out which would top up the market value payout to the equivalent of buying a 9 month old car again.

Obviously I hope that the situation never arises, but if it did I'd be pissed that I didn't take that £400 policy which could end up paying out anywhere between 30-40k.

Edited by Big Ry on Monday 6th April 18:55

[Big Ry]

michael gould said:

don't get GAP insurance ......i suppose if your borrowing lots of money to buy the car it's useful........but I don't borrow money for depreciating assets......i'm a bit old school, i pay by debit card

Which is nice if you can, however most people can't so it's either don't have one or buy a % of it on credit...and before everyone starts that old 'don't buy it if you can't pay cash', then remember that Aston Martin wouldn't exist today if people didn't buy on credit, as the cash buyers are never (and will never) be plentiful enough to sustain a company. Besides, many people who can pay cash also state that they can make their money work harder (and earn more) than the interest on the loan anyway.

I still don't see why GAP wouldn't apply though. Forget the fact that you don't owe anything on it, but given the opportunity put a 5 year safety net under what you paid from day one for such a small premium makes perfect sense to me. Worst case scenario someone suffers a total loss in say 4 years, if someone is more than happy to say you know what, the insurer is going to give me 50% of what I paid for the car (as that's all it's worth now), and I'm pleased I didn't spend that £400 for the GAP cover which would have paid out the other 50%....then fair enough

Basically for £400 i've got the full cost of replacement car for 5 years (even if that replacement cost 10-15k more than I paid for mine).

I'm not telling anyone else to get it, I just don't see why some seems so anti that's all. It's got nothing to do with paying in cash, credit or magic beans, it's just protecting the value of an asset.

[Big Ry]

Cockey said:

This sounds a little bit too good to be true. Surprised more people don't accidentally drive their 5 year old cars into a tree.

Honestly, that's exactly what these policies cover (well not intentional smashing ). Total loss will pay out the difference between the insurance value and what it would cost to replace the car as it was the day I bought it (so in my case a 9 month old SP10), up to a maximum payout of £50k.

There are a few variants (return to invoice etc), but I've gone for Combined Vehicle Replacement.

[Big Ry]

I've started a revolution

To be fair my annual insurance on the SP10 is a smudge over £300, plus £80 for the GAP, say £400 per annum for total peace of mind.....works for me.

I'm sure that fella in the DBS in the petrol station who got t-boned by the pink Corsa wasn't expecting that to happen but it did. As I said I'm usually not risk-averse at all, and will self warranty etc when out of AM cover, but I just found that cover too cheap to pass up.