GAP Insurance!
Discussion
Has anyone bought it or is is it just a reason to fleece a punter of a few hundred quid at time of purchase!
So there I am about to order an M135i. Instead of me being allowed to ask for a discount the Salesman's manager strolls over, prepared to try and sell me finance (dont need it), the discount being what would he need to do to get me to sign this evening and allow him to include £2.5k of 'discount' in the form of products including a £5-600 GAP Insurance product.
Can someone please explain GAP? it is illogical to my mind, and initially sold as if they can just dump an extra £10k £20k into your account AFTER your own car insurance has paid out should a scrote or you write-off your new pride and joy!?
What am i missing here? I am as yet to read the small print of any GAP Insurance product!
So there I am about to order an M135i. Instead of me being allowed to ask for a discount the Salesman's manager strolls over, prepared to try and sell me finance (dont need it), the discount being what would he need to do to get me to sign this evening and allow him to include £2.5k of 'discount' in the form of products including a £5-600 GAP Insurance product.
Can someone please explain GAP? it is illogical to my mind, and initially sold as if they can just dump an extra £10k £20k into your account AFTER your own car insurance has paid out should a scrote or you write-off your new pride and joy!?
What am i missing here? I am as yet to read the small print of any GAP Insurance product!
There are different kinds of GAP - what were you offered? Suggest you have a read here and then ask questions: http://www.click4gap.co.uk/gap-insurance.asp
We were offered GAP insurance when buying a month or so back. As I understand it means that you're insuring the depreciation should your new car be totalled during the period of the policy ie the "gap" between what you've paid for the car now and what the possible write off value would be if you wrote it off.
We decided against it as our normal car insurance would pay what we'd paid for the car in the first 12 months anyway.
I'd read the Car Salesman's thread on PH and both GAP insurance and paint protection are basically good commission earners for the salesman, but poor value for the consumer. We got the car G-Techniq'd by a local detailer for half the money the garage wanted for the paint protection, so don't bother with that either!
We decided against it as our normal car insurance would pay what we'd paid for the car in the first 12 months anyway.
I'd read the Car Salesman's thread on PH and both GAP insurance and paint protection are basically good commission earners for the salesman, but poor value for the consumer. We got the car G-Techniq'd by a local detailer for half the money the garage wanted for the paint protection, so don't bother with that either!
On a new M135i you should consider GAP seriously. Also take note of the GAP level cover. ie: £15,000 GAP will pay £10,000 should the car be written off.
It is all based on a what if scenario. If you pay £50,000 for the car today and if within 3 years it gets written off in a flood and insurance pays out £30,000 for the car would you be able to stomach the £20,000 loss?
So long as your comprehensive insurance pays the £30,000 for the car GAP will send the 2nd cheque for £20,000 and you can go and buy another £50,000 car.
HTH
It is more insurance, you might never need it and might feel you've pissed £600 up a wall but if you did need to claim then you would see value.
It is all based on a what if scenario. If you pay £50,000 for the car today and if within 3 years it gets written off in a flood and insurance pays out £30,000 for the car would you be able to stomach the £20,000 loss?
So long as your comprehensive insurance pays the £30,000 for the car GAP will send the 2nd cheque for £20,000 and you can go and buy another £50,000 car.
HTH
It is more insurance, you might never need it and might feel you've pissed £600 up a wall but if you did need to claim then you would see value.
POORCARDEALER said:
the right type of GAP bought at the right price is a very good product.
Indeed. I think I paid about £300 for mine. Probably overpaid but I just wanted to get my keys and go for a spin.The way I see it, there's a good chance someone will steal my car (with it being an E92) and with the gap insurance I'll get back exactly what I paid for it 12 months ago.
ArsE92 said:
Buy car for £20k.
Car gets stolen after 1 year.
Insurance payout is £15k
With gap insurance payout is £20k.
Right, so in the above scenario (as a cash purchaser) what ensures that the GAP payout covers the shortfall between what arbitrary figure the car insurer calculates and the 'real' market value. Car gets stolen after 1 year.
Insurance payout is £15k
With gap insurance payout is £20k.
The bit I just cannot fathom is the shortfall between the real market value and the original purchase cost being insured against. Is that real? Even for a cash purchaser? Is that really a product insuring against depreciation?
Apologies for the naive questions!
Apparently so yes.
Just took this out on a 1 series all be it on finance.
They had a guy recently who had his 3 series written off with 1 payment left on his finance. He had Gap insurance and he got back the full purchase price of the car.
So now he has a new car for free (minus the settlement figure)
Also my friend had her mini written off 9 months in, she had gap and had the orginal purchase price back. Worked well as she hated the car.
It is by all accounts a very good product.
I was the same as you at first, just couldn't get my head round how that can be real as it's only £500.
Just took this out on a 1 series all be it on finance.
They had a guy recently who had his 3 series written off with 1 payment left on his finance. He had Gap insurance and he got back the full purchase price of the car.
So now he has a new car for free (minus the settlement figure)
Also my friend had her mini written off 9 months in, she had gap and had the orginal purchase price back. Worked well as she hated the car.
It is by all accounts a very good product.
I was the same as you at first, just couldn't get my head round how that can be real as it's only £500.
ArsE92 said:
POORCARDEALER said:
the right type of GAP bought at the right price is a very good product.
Indeed. I think I paid about £300 for mine. Probably overpaid but I just wanted to get my keys and go for a spin.The way I see it, there's a good chance someone will steal my car (with it being an E92) and with the gap insurance I'll get back exactly what I paid for it 12 months ago.
Digger said:
Right, so in the above scenario (as a cash purchaser) what ensures that the GAP payout covers the shortfall between what arbitrary figure the car insurer calculates and the 'real' market value.
The bit I just cannot fathom is the shortfall between the real market value and the original purchase cost being insured against. Is that real? Even for a cash purchaser? Is that really a product insuring against depreciation?
Apologies for the naive questions!
GAP is also known as Return to Invoice cover. It will pay the difference between insurer's payout and original invoice price; ie covers depreciation. The bit I just cannot fathom is the shortfall between the real market value and the original purchase cost being insured against. Is that real? Even for a cash purchaser? Is that really a product insuring against depreciation?
Apologies for the naive questions!
I have bought it twice now
RTI, most recently at £249 for two years for up to £25k on a £61k purchase Maserati from a main dealer
Always looked like good value to me, especially on a car where the dealer margin is something near £10k and the chances of getting that back on normal insurance is pretty much zero
RTI, most recently at £249 for two years for up to £25k on a £61k purchase Maserati from a main dealer
Always looked like good value to me, especially on a car where the dealer margin is something near £10k and the chances of getting that back on normal insurance is pretty much zero
MK4 Slowride said:
It is all based on a what if scenario. If you pay £50,000 for the car today and if within 3 years it gets written off in a flood and insurance pays out £30,000 for the car would you be able to stomach the £20,000 loss?
But surely on this logic nobody would ever buy a car. It's not any different to:If you pay £50,000 for the car today and if within 3 years you sell it and the buyer pays you £30,000 for the car would you be able to stomach the £20,000 loss?
You're basically gambling the premium against the probability of the car becoming a total loss. Clearly if that DOES happen you'll be glad you did but in the normal run of things, you will take a hit on a car purchase, period.
What are the stats for the percentage of (valuable?) cars experiencing a total loss. There are your odds....
Bertrum said:
Apparently so yes. . . .
It is by all accounts a very good product.
I was the same as you at first, just couldn't get my head round how that can be real as it's only £500.
No wonder the salesman & I were exchanging bemused looks last night! It is by all accounts a very good product.
I was the same as you at first, just couldn't get my head round how that can be real as it's only £500.
Funny how a logical mind can deceive you!
Seems like a no-brainer now. Given that I have never had to claim on any insurance ever it does seem like a good product. . .
I took out gap insurance when I purchased my GTR in Nov 2009, for the 1st time. Paid £499 for 3 yrs cover & ceiling limit was £20,000.
Roll on July 2012, hit by another
driver & my car is written off, thank god my missus was ok, passenger side, front axle area took the brunt.
Now, insurance paid out, way above glasses guide as they knew I had gap, and gap informed me that I cannot accept insurance quote till I run it past them. You see Gap will want to pay the minimum possible, so,will encourage your own insurance to pay a valid amount for your vehicle.
Anyway I lost £1000 in depreciation for covering 16,500 miles of motoring in my GTR over a 2 1/2 yr period.
Would I hesitate to get gap again, never.
Here's a link to one http://www.ala.co.uk/. I will be getting a return to invoice one next time.
One important point matey, dealers add their premium onto the product so go direct to save you some money
Eta was a cash buyer, but I like to be safe, for a while at least.
Roll on July 2012, hit by another
driver & my car is written off, thank god my missus was ok, passenger side, front axle area took the brunt. Now, insurance paid out, way above glasses guide as they knew I had gap, and gap informed me that I cannot accept insurance quote till I run it past them. You see Gap will want to pay the minimum possible, so,will encourage your own insurance to pay a valid amount for your vehicle.
Anyway I lost £1000 in depreciation for covering 16,500 miles of motoring in my GTR over a 2 1/2 yr period.
Would I hesitate to get gap again, never.
Here's a link to one http://www.ala.co.uk/. I will be getting a return to invoice one next time.
One important point matey, dealers add their premium onto the product so go direct to save you some money
Eta was a cash buyer, but I like to be safe, for a while at least.
Edited by RJJ on Tuesday 6th November 13:07
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