Gap Insurance

[david63]

Has anyone had any experience with gap insurance (the insurance that "tops" up your car insurance in the event of a write off)?

Is it ant good?
Does it work?
Is it worth it?
Is it better to get it from the dealer (at an extortionate cost) or buy independently?

Currently in the process of buying a new car and have been offered gap insurance at almost £400 but can get it at a fraction of the cost over the Internet.

Confused dot com

[noddy10]

The GAP insurance you buy from main dealer will more than likely be exactly the same and possibly from same insurance company than you could get off the internet at a fraction of the price because of the "mark up" main dealers want.

[Jan Rosser]

I bought a new Mini last September and took out Gap insurance - didn't even think of looking elsewhere for it - I presume the cost is dictated by the initial car value or am I wrong. I paid over £600 on a Mini Cooper S - I've always taken it out with the dealer.

I shop around for car, house etc. insurance but it didn't occur to me to look around for Gap ooops

[david63]

Jan - I was told (don't whether it is true or not) that, from the dealer, the cost is the same irrespective of the value of the car. Looking around on the Internet they seem to be around the £150/£200 region.

Noddy - that is my understanding from reading up on the Internet - the dealer gets about 50% of the cost.

[towny44]

Never considered it, but then I just don't drive fast enough to total an egg, never mind the car.

[Kendhni]

I have been offered that a couple of times but have turned it down.
My own opinion of it is that it is insurance for insurance sake. When I buy a car I know it depreciates and accept that my car will be worth less ... should I have an accident that results in my car being totalled then I expect to take a hit ... I have had one accident in 35 years of driving which cost me about £250 to fix (the insurance paying the rest).

However, like all non-compulsory insurance policies, you have to weigh up the odds and make the best decision you can.

[Dancing Queen]

I suppose like any insurance you only find out if it is any good if you have to claim

We purchased it on one of our cars ( through the dealer ) mainly because we were buying a very expensive car which we weren't planning on getting rid of after a couple of years, I seem to think we paid about £500 for 2 years cover, was it worth it ... I would say no now but at the time it seemed like a good idea, would we buy it again .. well it would depend on what car we were buying, the initial cost and how long we were planning to keep it.

It does give a certain amount of peace of mind.

[Boris+]

Every time we change a car we go for GAP insurance. Whilst we both have confidence in our ability as drivers, and we also keep the maintenance on vehicles right up to schedule, you never know when something is going to fail and be the initial cause of a nasty accident - then of course there are other things like other drivers, other vehicle failures and road or roadside furniture failures (and trees) etc.

For peace of mind - we do it every time, without questioning it now.

Em

[sumdumbloke]

I have been offered that a couple of times but have turned it down.
My own opinion of it is that it is insurance for insurance sake. When I buy a car I know it depreciates and accept that my car will be worth less ... should I have an accident that results in my car being totalled then I expect to take a hit ... I have had one accident in 35 years of driving which cost me about £250 to fix (the insurance paying the rest).

However, like all non-compulsory insurance policies, you have to weigh up the odds and make the best decision you can.

For a new car of any reasonable value then Gap is a must. if you buy with finance you could get hit with a large liability, and if you paid cash yourself then you could find yourself waving goodbye to thousands - don't forget insurance companies pay out according to industry guide, not what might be thought market rates. And your own driving record is only half the story if it means anything at all (it usually doesn't): what about others hitting you?

The good news is it is much cheaper on line. I bought my new Land Rover last month and the dealer price was £750 for GAP. I paid £180 for 3 years of arguably better cover. 'Which' is the place to start. Very good advice there.

[Jan Rosser]

Every time we change a car we go for GAP insurance. Whilst we both have confidence in our ability as drivers, and we also keep the maintenance on vehicles right up to schedule, you never know when something is going to fail and be the initial cause of a nasty accident - then of course there are other things like other drivers, other vehicle failures and road or roadside furniture failures (and trees) etc.

For peace of mind - we do it every time, without questioning it now.

Em

I feel the same Em - it buys me peace of mind for what is without doubt my most expensive purchase - I may well have paid over the top but I have a very good relationship with my Mini dealer - got lots of little extras on my last Mini which arguably I've paid for but it's only me to make these decisions now and I just have to do what I think is best for me. I will however be shopping around next time now that I am aware of the alternatives.

[noddy10]

End of the day whatever you buy from a main dealer be it GAP insurance or body protection i.e. Supagard and other things they offer you when purchasing a new car it will be cheaper to buy elsewhere sometimes a lot cheaper.

[Kendhni]

For a new car of any reasonable value then Gap is a must.

Sorry SDB, but it is not a must .. it is a choice for which there are pros and cons.

And your own driving record is only half the story if it means anything at all (it usually doesn't): what about others hitting you?

I have been hit quite a few times, on most occasions the damage was minor (ranging from something not worth fixing to a few hundred quid) and fixed by the person who hit me.

The issue I have with gap insurance is more to do with the fact that if you have an accident it is more likely to be something minor and not a write-off of the car (which is really what gap insurance covers). If ti is a serious write-off then it is probable that you will have more important things on your mind.

Having said that, £180 for 3 years cover of a Land Rover doesn't sound too bad at all. It would be interesting to see what proportion of people actually claim on gap insurance.

[david63]

It would be interesting to see what proportion of people actually claim on gap insurance.

One article that I read said that the payout on GAP was around 20% of income

[Kendhni]

'20% of income' implies a good money maker for the insurance companies ?

[haveabeer]

Gap is a good earner for traders it supplements maybe a poor deal like most bolt on's
like any insurance is great if you need it.
I remember a guy who purchased a BMW 6 series and within two weeks had written it of it was a leased car
the insurance valued it at one price the lease company valued a higher value
He had to pay the difference some £4k so gap would have been great for him but in the majority of cases lease and insurance would come
to an agreement.

[Wobgoescruising]

I had three new Mini's - the first one I took out GAP from the dealer, but not the other two as was much cheaper online. My new car isn't a Mini but again GAP online, not dealer.

[noddy10]

When purchasing a new car most if not all insurance policies cover you with a like for like brand new car with no quibble if written off in the first 12 months of ownership.

[towny44]

When purchasing a new car most if not all insurance policies cover you with a like for like brand new car with no quibble if written off in the first 12 months of ownership.

Yes I'd forgotten that noddy, but of course it has to be brand new.

[Kendhni]

Just checked my insurance and you are correct Noddy (I had forgotten about that as well) ... although I am not sure if I am paying extra for that or not ... I will find out in a few days though because it comes up for renewal.

[noddy10]

No you are not Kendhni I think its pretty standard in most car insurance policies.

[Kendhni]

No you are not Kendhni I think its pretty standard in most car insurance policies.

But you have to take into account I am with Admiral .. the only thing I am covered for is being mounted by a sex starved hippopotamus while driving upside down under water.

[Capt Black]

Captainesse Black had a total write off several off years ago, so when we replaced that car we took out gap insurance via the dealer. It was the first time I had come across that sort of policy. We have continued with gap insurance ever since, simply for peace of mind. You just don't know what's going to happen out there, and the cost of labour and some replacements parts means that it isn't cost effective for the insurance companies to repair the vehicle. At the end of the day, it's a choice thing.

What I failed to do though, was research the internet for gap insurance. Won't make that mistake next time! Thanks for the info.