Total Loss / Gap Insurance

[Clevers]

Do any of you guys have an opinion on total loss / gap insurance ? I would be greatful to hear as need to make mind up by Friday.

Been quoted £599 to cover the difference between invoice price of the vehicle and what my insurance would pay out in the event of theft or total loss. Car worth about £32K and is 996 C2 facelift on 2002 plate.

I have taken this on my last two vehicles and always felt uncertain about value for money.

Ta..

[thegoose]

It's normally of most use when there is a finance agreement on the car. Reason being, if the insurers only pay out say £25k (I'm assuming some time passes between purchase and loss) and you owe £28k, then you have to actually stump up the £3k and pronto. If however, you bought for cash then the problem is not the same. If the insured amount is always up to the invoice price of the car (as you say) then the benefit/effective sum insured increases over the term and you will benefit greatly in the event of the car's demise (aside from the likely motor insurance premium increase).

The insurers are making money out of it as is the dealer so it's probably not good value. Weigh up how many times you have had a total loss claim, what the likely payout is (assume the car depreciates £3.5k pa and that, for the sake of argument, you claim in the middle of the term) and decide if you think the cost/risk/benefit stack up.

[Kickstart]

Dealers charge top wack for this - try googling to get cheaper quote, I have used Lombard in the past who were about 25% of the mercedes quote

[Clevers]

Cheers guys. My thoughts are much the same as yours and I may decide to go without as there will be no finance agreement.