GAP insurance question

[robin cur]

Look at it this way you buy a leon for £20.000 after 2 years you wrote it of, insurance company pay out would a about £10.000 - £11.000 that fine but to replace your car like for like would need about £13.000 upwards with GAP yould would get a new £20.000 car, less your insurance excess mines £100.

On a used car its is just as importent. you spend £4000 and after 2 years it gets wrote of how much would you get about £1000 form your insurance pay out, so is not £150 to £200 not worth it, I can tell you that if it happened to you, you would have wished you had GAP I DID, worked out very costly.

 

[Mr Cellotape]

For me GAP all the way, I know former members who have totalled their cars and then wished they had GAP.

Think of it this way, you buy a new car £20K, three weeks and 500-1000 miles in the car is stolen/on fire/crashed into and written off (This does happen).

The insurance company will not give you £20K, you'll be lucky to get £17K as it's a used car and they are dealing in trade values.

You just lost £3K in 3 weeks, plus depending how you financed the car you may owe money on something you don't even have.

GAP all the way, haggle for the best price.

 

[Ami-Jane]

I get the point gap is a good idea but do you have to advise them if you get modifications?? Can anyone answer this question?

I can't find anything on s&p's website about mods

 

[InfernalBadger]

I think if you've bought on finance then you'd be crazy not to get GAP insurance. If you own the car outright it's a bit of a gamble (Gets to a point where you almost wish somebody would steal your car, like with my RX8 that lost £8000 off it's value in one year!! If only somebody had stolen that ).

However I would recommend that you always shop around, I don't think the SEAT dealer offered me was too bad but the price I paid from the Mazda dealer was crazy

I would always ask about mods. I don't see why it should have an effect, but it might.

 

[lesinge2k]

Look at it this way you buy a leon for £20.000 after 2 years you wrote it of, insurance company pay out would a about £10.000 - £11.000 that fine but to replace your car like for like would need about £13.000 upwards with GAP yould would get a new £20.000 car, less your insurance excess mines £100.

On a used car its is just as importent. you spend £4000 and after 2 years it gets wrote of how much would you get about £1000 form your insurance pay out, so is not £150 to £200 not worth it, I can tell you that if it happened to you, you would have wished you had GAP I DID, worked out very costly.

If my car got written off, I would search autotrader etc to find out what I would pay for one of similar age and condition. The insurance company would give me this amount. I would then go and buy one of the ones I had seen on autotrader. I may even be able to get something a bit better with the money I saved from not buying gap insurance.

 

[lesinge2k]

Think of it this way, you buy a new car £20K, three weeks and 500-1000 miles in the car is stolen/on fire/crashed into and written off (This does happen).

The insurance company will not give you £20K, you'll be lucky to get £17K as it's a used car and they are dealing in trade values.

You just lost £3K in 3 weeks, plus depending how you financed the car you may owe money on something you don't even have.

GAP all the way, haggle for the best price.

I don't buy new as the depreciation is ridiculous.

I don't do finance as you get a royal rogering on the interest...

gap is therefore a waste of money for me...

 

[robin cur]

it's a matter of choice. but don't buy from the dealer untill you have had a good look round and see if you can find a better price

 

[lesinge2k]

I'm starting to think that aswell.

Perhaps like life insurance... if you have a family etc it is worthwhile, if you are single, it's a waste of money.

Many more examples aswell...

For me I think it ain't worth it, but for people with leases it is definitely worthwhile...

 

[Poverty]

if your car is writen off before its a year old most insurance companies will get you a brand new car, read your small print. ither, I owe alot less than the car is worth

 

[Ami-Jane]

yep with Aviva so they will replace the car within the first year so would look to get the gap insurance deferred - but still unsure about the mod front

 

[Invisible]

do you guys know anything about GAP insurance, i am picking my car up on saturday but the salesman phoned me on friday asking if i would like to take out the gap insurance thingy... i asked him to explain it and he told me that if i pay 20K for my car this year, and if i were to have an accident in 2 years time and say my car was only worth 15K the GAP insurance would make the total up to 20K again thus giving you what you payed for your car when you bought... hope this makes sense,

i dont really beleive this because everyone would be crashing there cars after 2 years..

cheers, owen

Well that's not techincally true, it basically covers any shortfall you may have on say a finace agreement or loan, you don't get to pocket the residual value!

So if I have an o/s loan of 17K and insurance write off at 15K the gap insurance covers to 2K gap. Otherwise you will be left with a 2K debt and no car if that makes sense.

Also, one thing I have not done yet which some people are not aware of is that your insurance company may reduce your prmium if you have GAP insurance as there is no battling over the value!

Well this is how I understand it anyway for what it is worth

 

[Poverty]

Well that's not techincally true, it basically covers any shortfall you may have on say a finace agreement or loan, you don't get to pocket the residual value!

So if I have an o/s loan of 17K and insurance write off at 15K the gap insurance covers to 2K gap. Otherwise you will be left with a 2K debt and no car if that makes sense.

Also, one thing I have not done yet which some people are not aware of is that your insurance company may reduce your prmium if you have GAP insurance as there is no battling over the value!

Well this is how I understand it anyway for what it is worth

thats the way it was explained to me too.

im now wondering whether it was a waste of money or not for me as I owe considerably less on finance than the car is actually worth, so if I wrote it off now there is nothing for the gap insurer to make up.

 

[Ami-Jane]

so return to retail value insurance would be better in that instance wouldn't it??

 

[cheungy]

I Said No to my Dealer did not want the offer but the guy kept pestering me to have it...not worth it for me (but thats just me...)

 

[2zeroalpha]

GAP should pay out the full difference between invoice and insurance. As such it is useful regardless of finance. for 170 quid i will get up to 10k back

 

[robin cur]

On my gap insurance I am not allow to except an offer from my car insurance company, untill the gap insurance is happy with the settlement.