Gap Insurance a good thing?
Discussion
Picking up my new Cayman GTS on Saturday so need to sort this (if I'm going to). Some old threads on here but I couldn't find any recent ones.
Fairly sure I will buy it but your thoughts, experiences and best place to buy would be helpful.
I'm getting a quote from the dealer but suspect this isn't the way to go?
Thank you....
Fairly sure I will buy it but your thoughts, experiences and best place to buy would be helpful.
I'm getting a quote from the dealer but suspect this isn't the way to go?
Thank you....
Buy privately ... It's a lot cheaper, and make sure you get the right one for you. There is the policy that just makes up the difference between the insurance pay out and the second dealer price of the car, and there is the policy that makes up the difference to a new car.
Similar for the other new/secondhand car dealer add ons - I.e. chip and kerb protection, paint protection, interior protection etc etc
Mini BMW offered me about £1000 worth or extras + cleaning bill and £299 of servicing nicely rolled into the PCP. The gap insurance, chip/kerbing insurance, proper detailing and proper film protection is in some cases over a third cheaper just from a quick google.
There are not called stealers for nothing
Similar for the other new/secondhand car dealer add ons - I.e. chip and kerb protection, paint protection, interior protection etc etc
Mini BMW offered me about £1000 worth or extras + cleaning bill and £299 of servicing nicely rolled into the PCP. The gap insurance, chip/kerbing insurance, proper detailing and proper film protection is in some cases over a third cheaper just from a quick google.
There are not called stealers for nothing
Next thing will be gap gap insurance, to cover the gap the gap insurance wont cover...
I think i will get some slip on the soap in the shower insurance next, cant be too careful :-)
Only joking guys but this is a money earner invented by the trade. If you are that risk averse i'd advise walking everywhere.
I think i will get some slip on the soap in the shower insurance next, cant be too careful :-)
Only joking guys but this is a money earner invented by the trade. If you are that risk averse i'd advise walking everywhere.
Budweiser said:
Right or wrong as with all products like this, for me it's about peace of mind, god forbid I would ever have to make a claim.
Quote for four years £349.00......
As you say, it's like any voluntary insurance policy really. There's no question though that with GAP you could end up with a lot of extra money towards a replacement car if you ended up unlucky enough to need it. Quote for four years £349.00......
The dealer margins are massive on it and generally they will discount it greatly without too much negotiation, half price isn't unheard of.
I don't get the gap insurance thing.
Insurance pays out a sum of money required to replace the car if its written off/stolen with the same vehicle. Gap insurance is cheap because claims are very rare, and insurance companies after some negotiating pay out a fair value for the vehicle. I run the insurance for a small fleet in our business, and I've never failed to get a fair value for cars we have lost over the last 20 years.
If you want a back to invoice policy, you are effectively betting (at very long odds) that your car will be stolen/lost during the gap period and you don't want to suffer the depreciation you would have suffered anyway.
It's a product invented by car dealers so that there's something else they can up-sell, like paint protection, alloy insurance, etc. They're very keen to sell it which should tell you they make a tonne of money out of it.
Insurance pays out a sum of money required to replace the car if its written off/stolen with the same vehicle. Gap insurance is cheap because claims are very rare, and insurance companies after some negotiating pay out a fair value for the vehicle. I run the insurance for a small fleet in our business, and I've never failed to get a fair value for cars we have lost over the last 20 years.
If you want a back to invoice policy, you are effectively betting (at very long odds) that your car will be stolen/lost during the gap period and you don't want to suffer the depreciation you would have suffered anyway.
It's a product invented by car dealers so that there's something else they can up-sell, like paint protection, alloy insurance, etc. They're very keen to sell it which should tell you they make a tonne of money out of it.
It is not just about whether a vehicle is lost or stolen. If you are unfortunate enough to write your vehicle off after 3 or 4 years, depending on what length GAP policy you take out, the vehicle could be worth say 50% (for arguments sake)of the original purchase price, that is what the insurance company pay out, if you have a back to invoice policy the gap company pay the difference between what the insurance company pay out and the original purchase price, so say 60k car worth 30k at time of the claim you get paid an additional 30k for a £300 policy, good deal imo, but it is a gamble like most things in life. All insurance is expensive until you need to claim as the saying goes!
Not forgetting that you can take a GAP policy out on vehicles up to 10 years old also.
Also if you get the type of policy that is RTN - Return to new, as distinct from RTI - return to invoice, it effectively covers inflation as the policy will pay whatever it takes to get a new car of the sane type at time of claim, less the insurance payout up to the policy limit.
I paid ~300 for 4 years cover, return to new, 70k claim limit, from Frank Pickles. My principal insurance (admiral) is not new for old, only market value at time of loss. It was cheaper to buy RTN gap for 4 years, than the price increase for a new for old principal insurance for 1 year.
I paid ~300 for 4 years cover, return to new, 70k claim limit, from Frank Pickles. My principal insurance (admiral) is not new for old, only market value at time of loss. It was cheaper to buy RTN gap for 4 years, than the price increase for a new for old principal insurance for 1 year.
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