Gap insurance..any recommendations?

[long time lurker]

I wonder if any of you can help..... and as most topics start this is asking on behalf of a friend!!!

They have just bought a car on finance (and paid far too much) and they declined gap insurance (sensible not taking it from the dealer) and as we were talking at lunch I gave them a simple breakdown of what gap insurance is and how it works. I also said I would find out some companies that offer this (at much better than dealer prices)

Any recommendations welcomed and thanks for any help

[bencollins4]

Unless they put down £0 deposit and are paying over 5 years, I wouldn't even consider GAP. It'll almost certainly end up with no payout in the event of a total loss.

[kiethton]

There are two types, finance shortfall and return to invoce (both say what they do in the tin)

I got RTI on my e92 335i through ala for £200, 4 years cover from purchase (I bought at 3.5 years old) and in the event if the car being nicked or written off it'll cover the difference between the insurance payout and price I originally paid.....when I got the car (21 and no real experience of a fast RWD car barring a 2.5 s type for 3 months it made sense for £200!)

[long time lurker]

bencollins4 said:

Unless they put down £0 deposit and are paying over 5 years, I wouldn't even consider GAP. It'll almost certainly end up with no payout in the event of a total loss.

Can I ask how you work that out?? I look at it as she paid £10200 for the car and if she wrecks it tommorrow the insurance value will be £8000 and the gap will cover the £2200 (or balance of the finance)

I only know about Gap after I wrote a car off a few years back and still owed the finance a fair few ££ after payout!!

[sinizter]

bencollins4 said:

Unless they put down £0 deposit and are paying over 5 years, I wouldn't even consider GAP. It'll almost certainly end up with no payout in the event of a total loss.

Your advice is only applicable to the finance shortfall kind of GAP.

RTI gap is something I would not be without on anything over £15k-ish.

My dad wrote off two cars in about 18 months ... RTI paid out over 10k in total.

[Andy665]

There is a third type that expands on the benefits of RTI - Vehicle Replacement Gap - gives you back the difference between the insurance payout and the price of a new equivalent vehicle

[Little Lofty]

ALA seem to be one of the cheapest providers.