Papering the gap

My daughter is buying a new Renault Clio, hers having been written off in a RTA last week. When we went down to finalise the deal the salesman talked about a GAP policy, which pays out if her new Clio is written off in a 3 year period. The policy pays the difference between what she paid for the car and its write off value. What are your thoughts on this please?

Asked on 1 May 2010 by A.B., via e-mail

Answered by Honest John

It's a useful commission earner for salesmen who make very little on
selling cars these days. But you will find you can get the same thing much more cheaply via an insurance broker.

Tags: buying gap insurance new cars finance

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