MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Just saw a current thread about car insurance/write-offs which prompted this.
About to buy a car and have chance to get GAP insurance at purchase time only.
Basically if your car is written off during this 3 year period (£449 for all 3 years in one-off payment - £150 per year) GAP insurance makes up any deficit. ie if you pay £15k for a car but it's worth £10 after 2 years and is written off, GAP ensures you get what you paid for it - at least that's my understanding.
It seems worth it I guess but just another added expense when you're already forking out....anyone else have it? A must-have or a loads of old bollux? Feel like if I don't have it I'll be tempting fate! 😕
We were offered it along with service plans, apolstery protection, paint protection. .......
I didn't bother but I am tight according to my wife. Whenever anyone says they have had a ppi claim, she says that I was too tight to ever take out ppi. 😀
Have to admit id never heard of it until we bought a brand new car last year so we took it out for peace of mind as have never had a new car before, think it was over £400 for the first 3 years.
since looking about we could of got the same for less than half that !, but we didnt know any different 🙁
My understanding of GAP insurance is that it is to make up the difference between the value of the vehicle if written off against the amount of finance owed against it. I.E. it is to cover the potential gap between what you owe on a vehicle and what you might get back for it.
I've never heard of it getting you back all you paid for a vehicle!
[s]
Basically if your car is written off during this 3 year period (£449 for all 3 years in one-off payment - £150 per year) GAP insurance makes up any deficit. ie if you pay £15k for a car but it's worth £10 after 2 years and is written off, GAP ensures you get what you paid for it
If that's what the person selling you the insurance told you. Then you should report them.
That's not what GAP insurance does.
It covers any deficit between the value of the car and the outstanding finance, that's all.
If there is no deficit, there is no payout.
The purchase price doesn't come into it.[/s]
Edit- seems I'm probably out of touch, long time since I worked in a showroom selling cars. 🙂
bought it for lease car cheapest I could find then was [url= http://www.ala.co.uk/ ]http://www.ala.co.uk/[/url]
[s]I was offered some insurance that they definitely said would ensure that I recoup the full purchase price if I wrote it off.
Didn't take it but that was definitely how it was described. Don't remember them using the specific term "GAP" though, if that;s the issue[/s]
(Edit) - That's OK then 😀
I think I might be being a dumbass here - clearly my understanding is wrong (not explained clearly or I is fick). So am I right in thinking given the last few posts that if I pay in one transaction ie no finance, there is no reason to have it at all as there wont ever be a finance deficit? Help...my little brain hurts 😉
There are three main types of GAP insurance.Finance GAP insurance.
If you’ve borrowed money to buy the car, you might still owe more than the insurance company will pay out. Finance GAP insurance pays the finance company enough to cover your debt – you’ll be left with no car and no money, but at least you won’t be in the red
Return-to-invoice insurance.
This is designed to top up the payment from your car insurance so that you get back exactly what you paid for the car (or any outstanding finance). This type of policy can be bought for both new and older cars
New car (or ‘vehicle replacement’) GAP insurance.
This is like return-to-invoice insurance, but it’s designed to compensate for the rising cost of cars. New car GAP insurance makes sure you get your money back plus a bit more, so you can replace your car for a new one of the same model and specification. This type of policy can only be bought for new cars
if I pay in one transaction ie no finance, there is no reason to have it at all as there wont ever be a finance deficit? Help...my little brain hurts
well, if you wrote off your car, you'd only be able to buy a replacement second hand car to the current value
if you write it off with gap insurance, then they pay the difference so you can get a new car again
if you get it online rather than through the dealer its a lot cheaper, think I paid about a hundred quid for 4 years cover
Shop around 400 seems steap. Its essential for leasecars IMO.
Too tight? Might as well TPFT insure the car too then.
Looked at my policy, 3yrs policy £135 for £15,000 deficit
Too tight? Might as well TPFT insure the car too then.
No not too tight and think I'll stick with fully comp thanks.
Just wondered if it was worth it but as ever, ask a question and you get conflicting answers.
If I can buy GAP that does what I want ie give me full value of car without finance then of course I'll do it.
I was mistaken in thinking I could only get GAP when I bought the car.
A quick Google shows it can be got for way less than half of VW would like to take off me.
Have it on my lease car, 15000 cover for two years, cost me around £100 from ALA.co.uk. Made perfect sense in case it gets stolen or written off as it'll cover my payments as well...
As with any insurance shop around. Think I paid a smidge over £100 for 4 years back to invoice
I got when I bought a new car back in 2007, it would have paid he difference between new car cost (replacement I think) and whatever the standard insurance paid out.
I paid £400 gap insurance on a new van 2 years ago.
If i write the van off I am quids in, the chances of this happening are very slim as I have not had an accident in very long time, but shit happens, also they will fight to get the maximum out of your insurer as means they top up less.
Which saves you the hassle of arguing the toss with your insurers to even get what your car is worth.