gap insurance on a 4 yr old second hand vehicle

[mobile chicane22]

I'm picking up a new (to me) bike on saturday and I've been offered gap insurance now the bike will be purchased outright with no finance secured on it and the gap policy price is 1.5 Times that of a full year policy fully comp with agreed value which I will have to have anyway so is buying the gap a waste of money?

[Beer Man]

Why would you need gap insurance on a bike that you owe nothing on?????

[Pwig]

Because it's a depreciating asset?

How much are they charging for the policy OP?

[HTP99]

Beer Man said:

Why would you need gap insurance on a bike that you owe nothing on?????

Because GAP can also cover the difference between the invoice price and what your insurance company are prepared to pay out in the instance when the vehicle is written off.

[Beer Man]

HTP99 said:

Because GAP can also cover the difference between the invoice price and what your insurance company are prepared to pay out in the instance when the vehicle is written off.

OK, Never knew that. Ta.

Guess it's about weighing up the risk then.

[andymc]

is it not return to invoice? (RTI)

[oldnbold]

I presume its a back to invoice policy? Which means if you wright off the bike in the next 3 years the GAP will make up the difference between what your normal road insurance pays out, which may be half in 2 years time, and the amount on your invoice.

Only you know the figures, if your paying £8k for the bike and the gap is £200 I'd probably go for it, however if you are paying £4k for the bike and the gap is £500 I'd not bother.

[mobile chicane22]

the bike is costing me £9700 which is cheap from a trader however my px value is very high compared to what I could have got else ware or even private sale.

I know vehicles loose money as they age and its not an issue to me, gap is about £350 however I'd rather spend that on extending the waranty for 2 years (its a manafacturer waranty not some 3rd party toss ).

I'll be insuring it for £10500 ( agreed value ) which is what I believe its worth so minus my excess if any accident is deemed my fault I'm still not going to be out of pocket.

ta for the replies guys.

[ging84]

that doesn't make any sense
you have it insured for an agreed value higher than you paid for it, what exactly is gap insurance meant to do here?

[mobile chicane22]

yep my thoughts exactly