GAP Insurance good idea?
Discussion
Sorry did a search, but seacrh not working, so sorry if this has been discussed..
I have just bought a £24k car, with 7k deposit. The dealer tried to punt his GAP insurance, which looked interesting, so I declined and had a look on line for a better deal. But overall - do poeple here thing its a con/good idea? I tend to shy away from insurance as a money for old rope attitude, but this seems to make sense..
4 years return to invoice insurance. - ie doesnt matter what the car is worth in 3y 11m time - I get the inurance payout+ a cheque to make it back up to £24k on a total write off or theft.
Opinions?
I have just bought a £24k car, with 7k deposit. The dealer tried to punt his GAP insurance, which looked interesting, so I declined and had a look on line for a better deal. But overall - do poeple here thing its a con/good idea? I tend to shy away from insurance as a money for old rope attitude, but this seems to make sense..
4 years return to invoice insurance. - ie doesnt matter what the car is worth in 3y 11m time - I get the inurance payout+ a cheque to make it back up to £24k on a total write off or theft.
Opinions?
I too dont normally go for this sort of thing, but back to invoice gap can be pretty useful. Just dont get more than you need.
We got it on a used BMW recently and £10k worth of gap insurance for 3 years we got down to £138 quid (not bad considering the finance chap started at a scarcely believable £399!!).
We got it on a used BMW recently and £10k worth of gap insurance for 3 years we got down to £138 quid (not bad considering the finance chap started at a scarcely believable £399!!).
I was offered RTI GAP insurance recently by a Lexus main dealer on a £21K nearly-new car for the princely sum of £599.
When I pointed out that I could buy £12K5 cover for a 3 year term for £125 online the conversation ended.
In principle I think GAP can be a good product, but shop around and make sure you don't buy more cover than you can claim for.
When I pointed out that I could buy £12K5 cover for a 3 year term for £125 online the conversation ended.
In principle I think GAP can be a good product, but shop around and make sure you don't buy more cover than you can claim for.
We took out gap insurance on a new car last July. I spoke to several friends in the trade beforehand and they all said it's worth the relatively low premium, especially if there's finance on the car. It's worth shopping around though - the dealer's price is unlikely to be the best you could find. Their first price to us was £400 but it didn't take much negotiating to bring it down to £300 with interest-free payments spread over a year. (This is for a £31k car.)
If our new car got written off tomorrow
the regular insurer would offer us many £k less than we paid for it 7 months ago and we'd have to go and find a replacement with a) the same low mileage, in b) the same perfect condition with c) at least the same options. Gap insurance means you just walk back into the dealer and they give you another brand new one - even when the car is a few years old.
Check on your regular insurance policy whether you're covered new-for-old. Our Audi insurance is new-for-old for the first year, so we got gap insurance delayed for a year to take us through until the car is 4 years old.
Our dealer told us that apparently people have been known to stuff a car into a tree just before the gap insurance expires...
If our new car got written off tomorrow
the regular insurer would offer us many £k less than we paid for it 7 months ago and we'd have to go and find a replacement with a) the same low mileage, in b) the same perfect condition with c) at least the same options. Gap insurance means you just walk back into the dealer and they give you another brand new one - even when the car is a few years old.Check on your regular insurance policy whether you're covered new-for-old. Our Audi insurance is new-for-old for the first year, so we got gap insurance delayed for a year to take us through until the car is 4 years old.
Our dealer told us that apparently people have been known to stuff a car into a tree just before the gap insurance expires...
Chap I work with bought a Lexus for £16K, had it just over a year when it was pinched (he'd forgotten to lock his front door and someone walked in and took his key).
Insurance would only give him £10K for the car but as he had GAP then he got the extra £6K from them, in this instance it came in handy.
His house insurance didn't pay though, he lost a lot of toys!
Insurance would only give him £10K for the car but as he had GAP then he got the extra £6K from them, in this instance it came in handy.
His house insurance didn't pay though, he lost a lot of toys!
Kiltox said:
s2ooz - what is the list price of the car (are you buying brand new?)
In my case described earlier I think VRI would be better than RTI because I'm getting a considerable discount off list.
Its a 6 month old car which lists at 27k - I paid £24, but I reckon its worth less than that - I did by from a dealer, who I assume value it at less than I paid ( it was their own show car from new)In my case described earlier I think VRI would be better than RTI because I'm getting a considerable discount off list.
I see what your saying and I think you have concerns if you think list prices will rise, as they add new items, but I prefer to take a little risk:
Im not intending to write it off or get it stolen, so why pay more for something I wont claim for.
Im not expecting the tpye of car to go up - they tend to have been this price for 5 years laready, any more and they wouldnt compete against other marquees..
I would assume the gap people could say they could buy a 6 month old for 5k less than me, so they actually SAVE money.
Kiltox said:
Ah right, VRI is only for new cars anyway
ala.co.uk:Vehicle Replacement Insurance is available for vehicles that are financed, on a personal loan, or owned outright. Vehicle Replacement Insurance is available to private individuals and companies. The cars can be up to 5 years old and cover is available for up to 4 years from the date that you took delivery of the vehicle.
Kiltox said:
Oh right...... hmmm
I still don't understand this stuff
Need to get it sorted though, take delivery of my new car on Wed.
The way it was explained to me...I still don't understand this stuff
Need to get it sorted though, take delivery of my new car on Wed.
VRI - Vehicle Replacement Insurance.
Car bought for £20k. 2 years in, you write it off. Cars worth £10k, your insurers give you £10k and the VRI insurers give you another £10k to put you back in the same position you was in when you bought the car.
GAP Insurance
Car bought for £20k, 6 months into it car gets written off, worth £15k but still have £20k owing on finance. £15k from insurers, £5k from GAP insurers to pay off the owning finance but you then have to start again ie stump un deposit for new car.
SteveS Cup said:
GAP Insurance
Car bought for £20k, 6 months into it car gets written off, worth £15k but still have £20k owing on finance. £15k from insurers, £5k from GAP insurers to pay off the owning finance but you then have to start again ie stump un deposit for new car.
not quite, I guess it varies.. you wont still owe £20k, as you will have made 6 months worth of payments, so GAP pays less that - ie to CLEAR the finance.Car bought for £20k, 6 months into it car gets written off, worth £15k but still have £20k owing on finance. £15k from insurers, £5k from GAP insurers to pay off the owning finance but you then have to start again ie stump un deposit for new car.
chances is are you owe as much as its worth, so gap may not need to pay out much at all, and normal car insurance is plenty. this is where I stumbled on GAP, and have gone INVOICE insurance - I get the diff to the ORIGINAL invoice amount, no link to my finance agreement.
Ring them back about 7- 7:30pm today. It's end of month and they will drop their price if short of target. My mate bought a £28k Supercharged Elise 3 days from the end of a quarter last year. They started off at £400. We left it.
End of quarter came (we are a sales company so work late). About 8pm the phone rings, they are doing anything to get numbers on the board, so they offered it at £127. He ripped their hand off.
End of quarter came (we are a sales company so work late). About 8pm the phone rings, they are doing anything to get numbers on the board, so they offered it at £127. He ripped their hand off.
s2ooz said:
not quite, I guess it varies.. you wont still owe £20k, as you will have made 6 months worth of payments, so GAP pays less that - ie to CLEAR the finance.
chances is are you owe as much as its worth, so gap may not need to pay out much at all, and normal car insurance is plenty. this is where I stumbled on GAP, and have gone INVOICE insurance - I get the diff to the ORIGINAL invoice amount, no link to my finance agreement.
What if there is no finance? I guess its straight to Invoice insurance.chances is are you owe as much as its worth, so gap may not need to pay out much at all, and normal car insurance is plenty. this is where I stumbled on GAP, and have gone INVOICE insurance - I get the diff to the ORIGINAL invoice amount, no link to my finance agreement.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff