GAP Insurance

[jonvw84]

Quick question, is this worth having on a new car purchase or just another waste of money?

VWFS if that's any help...

[InitialDave]

I'd say "probably yes, but not at their prices" is likely the answer. Depends how much they want compared to an independent source.

Have you had any quotes for how much suitable gap cover will cost you over the term of your finance?

If the car is written off, how big a gap would you have between what you'd owe and what your insurers would pay out, and how do you sit with footing that bill?

[SteBrown91]

Is GAP insurance worth it? Yes

Would I buy it at dealer prices? No

I've got it via ALA and with Pistonheads discount it was 135ish quid for 3 years on a car worth 21k

[jonvw84]

Tbf its £400 on a £40k car, had a quick look around and most would be coming out at that too, just wondered if it was worth it as this is my first 'brand-new' buy

I'll more than likely take it out as its good arse coverage

[SteBrown91]

ALA is coming I at 212 with pistonheads discount

[easy_rider33]

I'd take it out. My neighbor has just had to claim on his policy due to theft of his car. It was a 6 month old S4. The gap between the insurance offer and the amount owed was significant but he's covered. Also his policy paid for the excess on the insurance premium too. Small outlay in the grand scheme of things.

[rovermorris999]

Check your insurance policy. Many will replace a written-off car with a new one in the first 12 months so GAP wouldn't be needed in the first year.

[Pica-Pica]

rovermorris999 said:

Check your insurance policy. Many will replace a written-off car with a new one in the first 12 months so GAP wouldn't be needed in the first year.

Covered for first two years with NFU mutual.

[easy_rider33]

rovermorris999 said:

Check your insurance policy. Many will replace a written-off car with a new one in the first 12 months so GAP wouldn't be needed in the first year.

Thanks for that. I'll let him know 👍🏻

[ashleyman]

How many years coverage do you buy?

Should it be the same term as your car's finance length?

[RammyMP]

Yes, should be the term of your finance. The insurance payment won be the value of the car let alone what you owe on it. I’ve took it out on the last 4 cars, last 2 with ALA, fortunately I’ve never had to claim.

[syl]

All insurance companies try to make a profit. Over a lifetime, most people would be better off without insurance. I tend to avoid insurance that isn't mandatory (eg car) or that would essentially bankrupt me if I didn't have it, but needed it (eg buildings). GAP is worth it most, i.e. the risk is biggest, when the car is very new. The amount it pays will tend to reduce as the car gets older.

Many insurance companies give new for old insurance on a car that's written off in its first 12 months. Some (eg NFU, SAGA) give it on a car for the fist 48 months. I insured with NFU and didn't bother with GAP.

[ashleyman]

RammyMP said:

Yes, should be the term of your finance. The insurance payment won be the value of the car let alone what you owe on it. I’ve took it out on the last 4 cars, last 2 with ALA, fortunately I’ve never had to claim.

I'm going with ALA as I have a credit note with them that needs using up.

Just couldn't remember what you were supposed to do. For me, GAP is mandatory on something like a PCP where you'll owe interest on the finance and I'd prefer not to be on the hook for that!