Gap insurance advice

Author
Discussion

Camelot1971

2,698 posts

165 months

Friday 17th May 2019
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fatboy b said:
Google ‘gap insurance’. Make your own mind up if you want it. No need to ask on here.
Why didn'y you follow your own advice here: https://www.pistonheads.com/gassing/topic.asp?h=0&...

rolleyes

Burwood

18,709 posts

245 months

Friday 17th May 2019
quotequote all
Bob-2146 said:
Gap insurance is a massive con. “Yes sir please give me the extended warranty and the alloy wheel cover” jester ...

If you must have it never buy from a dealer. Ala gap on here will quote you I believe.
It’s risk mitigation. Not a con at all unless you buy from the dealer and have your pants pulled down.

TwigtheWonderkid

43,246 posts

149 months

Friday 17th May 2019
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Bob-2146 said:
Gap insurance is a massive con.
No it's not. It's not for everyone, and you need to shop around for the best price, but it's not a con.

anonymous-user

53 months

Friday 17th May 2019
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Must create an incentive to park your three year old car somewhere dodgy (Bradford?) and hope it gets nicked so you can get a shiny new one. Otherwise chances of actually needing to claim due to a full loss must be fairly negligible.

I suppose the product is mainly geared towards those buying something they can’t really afford on finance.

On something that will depreciate faster than falling off a cliff edge I can see how it may be useful (e.g. new f type, Renault Alpine a110). But for 7k used I personally wouldn’t bother.

tinnitusjosh

324 posts

71 months

Friday 17th May 2019
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I have an RTI on the car which i bought for £30k 12 months ago, and which is now worth about £22k. Policy cost about £300 for three years. Absolute no brainer for me - if there's a total loss then I'll be able to replace with a much newer car than i currently have.

It does create a perverse incentive insofar as I'd be better off binning it then selling it...

mcflurry

9,079 posts

252 months

Friday 17th May 2019
quotequote all
Thinking with a £7000 car, if you make a claim in a year's time, assuming the car will be worth £4500-5500 the £100 Gap cover would cover you back to the £7000.
IMHO I'd say that was worth paying the ~£100 smile

Pica-Pica

13,617 posts

83 months

Friday 17th May 2019
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GAP is included as standard on my NFU Mutual insurance policy for the first two years of the cars life. (Strictly speaking, they will provide an equivalent new car or recompense the invoice cost if it is considered a write off or stolen and unrecovered. Write off is if repair exceeds 60% of current value).

greamec

Original Poster:

9 posts

67 months

Friday 17th May 2019
quotequote all
mcflurry said:
Thinking with a £7000 car, if you make a claim in a year's time, assuming the car will be worth £4500-5500 the £100 Gap cover would cover you back to the £7000.
IMHO I'd say that was worth paying the ~£100 smile
agreed me to, waiting for my quote. thanks again everyone.

Gary C

12,312 posts

178 months

Sunday 19th May 2019
quotequote all
greamec said:
mcflurry said:
Thinking with a £7000 car, if you make a claim in a year's time, assuming the car will be worth £4500-5500 the £100 Gap cover would cover you back to the £7000.
IMHO I'd say that was worth paying the ~£100 smile
agreed me to, waiting for my quote. thanks again everyone.
But isnt that RTI rather than GAP

True GAP would cover the gap (!) between insurance payout and any outstanding finance I believe, so check what your getting.

ALSO, when I had my car stolen and started my claim on my Return To Invoice, they asked me to produce the original invoice, not the order form which is what you normally get. I did not have a copy, so had to get the dealer to scour the old filling cabinets (and it had changed hands) to find their copy.

so, if you have RTI, make sure you have an invoice and confirm that it is acceptable.

in my case £300 payed out ~£13K and I got £26K back for a car that was 3.5 years old.

So certainly not a con.

bungle

1,874 posts

239 months

Sunday 19th May 2019
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Gary C said:
in my case £300 payed out ~£13K and I got £26K back for a car that was 3.5 years old.
.
It might be useful for others to post who it was that paid out, as the concern people often have is whether the company they trust their money with will actually pay out come claim time.

Gary C

12,312 posts

178 months

Sunday 19th May 2019
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bungle said:
Gary C said:
in my case £300 payed out ~£13K and I got £26K back for a car that was 3.5 years old.
.
It might be useful for others to post who it was that paid out, as the concern people often have is whether the company they trust their money with will actually pay out come claim time.
Wish I could remember, it was in 2007 on my 2003 Subaru Sti.

Miss that car.

TwigtheWonderkid

43,246 posts

149 months

Sunday 19th May 2019
quotequote all
Gary C said:
But isnt that RTI rather than GAP

True GAP would cover the gap (!) between insurance payout and any outstanding finance I believe, so check what your getting.
GAP is not so named because it covers the gap!! It stands for Guaranteed Asset Protection, and can be sold in various guises, all of which are forms of GAP insurance!

Burwood

18,709 posts

245 months

Sunday 19th May 2019
quotequote all
TwigtheWonderkid said:
Gary C said:
But isnt that RTI rather than GAP

True GAP would cover the gap (!) between insurance payout and any outstanding finance I believe, so check what your getting.
GAP is not so named because it covers the gap!! It stands for Guaranteed Asset Protection, and can be sold in various guises, all of which are forms of GAP insurance!
This. There is a myriad of policies. Talk to the provider. It’s all spelt out.

Gary C

12,312 posts

178 months

Monday 20th May 2019
quotequote all
TwigtheWonderkid said:
Gary C said:
But isnt that RTI rather than GAP

True GAP would cover the gap (!) between insurance payout and any outstanding finance I believe, so check what your getting.
GAP is not so named because it covers the gap!! It stands for Guaranteed Asset Protection, and can be sold in various guises, all of which are forms of GAP insurance!
Well, you learn somthing every day smile

AlmostUseful

3,276 posts

199 months

Monday 20th May 2019
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We’ve never had GAP before but have recently taken it out for my wife’s new leased Kuga, it’s a £28k car and it’s owned by somebody else, so if for whatever reason it’s written off or stolen then we won’t have an issue paying the lease company back.

Probably wouldn’t have done it if bought outright because we would be (theoretically) put back in the same position of having a car given to us if the correct age.