Mind the GAP?

[M11rph]

GAP insurance, not the most exciting topic, until you need it I guess.

New car (718 GTS) due in a couple of months. Purchase will be cash.

Given that the 718 will stop production some time in the next 18 months, is there any "value" in taking out GAP insurance?

-Insurance policy will cover settlement at invoice price during the first 12 months.
-Nnone of the GAP policies appear to cover any shortfall in the event of a write-off where the list price price has increased shortly after purchase.
- Chance of being able to order a new car are likely to be minimal.

I'm struggling to see any reason to take out a 3 year GAP policy, but thought I'd ask the PH Collective in case I'm missing something obvious?

Thanks in advance.

[ConnectionError]

Agreed value insurance policy?

[Discombobulate]

NFU cover you against theft and damage to value of new replacement - or new replacement where available - for first 2 years as part of their normal policy. No need for GAP. Think other companies do too.

[Dingu]

Depends if you are happy with the difference between invoice and market price in years 2&3 balanced against your own appetite for risk.

[M11rph]

ConnectionError said:

Agreed value insurance policy?

The policies I've looked at so far appear to use Glass's Guide Price at the time of purchase as the Agreed Value, so in the event that Porsche decide to apply a 5-8% rise after my purchase date then I'm not sure I see the benefit there?

[M11rph]

Dingu said:

Depends if you are happy with the difference between invoice and market price in years 2&3 balanced against your own appetite for risk.

The Policies do seem to split between Back to Invoice or Vehicle Replacement, you need to decide which type when buying the policy. Back to invoice wouldn't protect against a loss in a scenario where prices have taken a significant rise, whilst the Repalcement policies would appear to struggle in an environment where getting a new car is improbable.

Thanks for the input gents. It's a scenario which I'd not really considered, one of rising prices and no realistic opportunity to replace.

Not the greatest risk to take on, or put down the £500 for an ALA policy to cover myself perhaps to some degree.

[alscar]

M11rph said:

The policies I've looked at so far appear to use Glass's Guide Price at the time of purchase as the Agreed Value, so in the event that Porsche decide to apply a 5-8% rise after my purchase date then I'm not sure I see the benefit there?

Most policies afaik seem to indicate a brand new car within the first 12 months without mention of sticking to the original purchase price invoice but yes puchasing GAP is a belt and braces purchase providing the small print caters for the new increased RRP and not simply RTI.
Alternatively finding a company that provides full new car cover within 12 months then agreed value going forward is another option.

[squirdan]

Buy one 12mths after you get the car. And don't buy one from the dealer...miles cheaper online; I have had RTI policies and if you check carefully some will offer unused months premium refunds if you sell the car, and / or let you transfer the credit to a new car. For a few hundred quid once your main insurance has changed to market value I'd say it was worth it on an expensive car

[Mark V GTD]

You need a ‘new replacement car’ GAP policy rather than an RTI one (return to invoice).

Be careful relying on regular insurance for replacement of your car in the first year - it often has caveats such as ‘subject to an availability’ etc. check the exact wording.

Update - spelling corrected!

Edited by Mark V GTD on Wednesday 25th January 18:39

Edited by Mark V GTD on Wednesday 25th January 18:40

[M11rph]

Mark V GTD said:

You need a ‘new replacement car’ GAP policy rather than an RTI one (return to invoice).

Be careful relying on regular insurance for replacement of your car in t r first year - it often has caviars such as ‘subject to an availability’ etc. check the exact wording.

Agreed, I've had an "enjoyable" couple of hours reading the small print on a number of policies, dry but instructive.

New Replacement policy is the way to go, there are some potential pitfalls but the ALA policy covers most eventualities and is 1/3 of the cost of the OPC offering.

Thanks for the advice and opinions PH'ers.

[Discombobulate]

All I can add is that my daughter had to claim for total loss on an expensive car. NFU was unable to supply replacement (up to 2 years from purchases in terms) as not available, but paid out full (newly increased RRP). No quibbles. I would trust them again over any RTI / GAP offering from OPC.

[scrounger73]

I have replacement vehicle cover through ALA and have had GAP on several cars. Yep, it's only worth it if you need it but hind sight is a great thing.

[Cheib]

Last time I bought a new car I was insured with Hiscox, there policy covered an automatic 24 months return to invoice clause. Or they’ll do agreed value in subsequent years.

Honestly think when you look at what policies form the likes of Hiscox include and they’re “can do” attitude if you ever have to claim the higher premiums don’t look as expensive…

[M11rph]

Many thanks for the input above gents. Hopefully a March delivery so I'm just trying to be organised.

I'll definitely have a plough through the small print rather than just buy Insurance on price. The replacement policy terms, agreed repairer if needed and items such as european cover and other driver cover are all quite variable between different policies but have a bearing for me. Many thanks.

[M11rph]

The update with the car due this week. Many thanks for the advice given above.

NFU Insurance policy, surprisingly cheap @ £550! In the event of a total loss this provides the lower of Invoice or Market value, so with the recent price increases there is still a potentially significant gap.

So I'll be adding an ALA Vehicle Replacement Plus policy, certainly for the first couple of years (£290) which gets back to the replacement cost at the time of the claim if no vehicle is available.