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Having secured a very good deal on a new diesel corolla from a dealer ( beat uk broker by £500) I have to decide whether to take up the gap insurance they offer at £400 for 3 years. This guaurentees the full value is paid up when the car depreciates most heavily ( I think)should it be written off. Does anyone know who else offers this type of insurance so I can compare prices in the probably unlikely event I take it out. Any oppinions?
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Have just taken out GAP insurance on new jag diesel; dealer quoted £395, got it via internet ( via reputable company ) for £295. This provides invoice replacement value for 3 years, which is/will be possibly different for vehicle replacement value, also available but at extra cost. Cover has to be taken out within 30 days of invoice/delivery. Personally I feel it's worth it for the sheer piece of mind.
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Which internet company rory?
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I was offered this by Lookers, Southport, for £300 when I ordered my new diesel Accord. I declined, but I'm now having second thoughts.
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It MAY be worthwhile on a new car (I was offered about the same deal a few months ago for a T reg Focus NOT worth it since the worst depreciation had already passed)
I strongly recommend checking the small print from your dealer before you apply - Some of these deals do not have as wide a coverage as standard fully comp cover and you could find that there are circumstances where you're car would be written off but the GAP insurance won't pay out. Also make sure that the deal is backed by a reputable company, most schemes are backed by a larger insurer but some may not be......
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I know nothing about this type of insurance - other than that, like all warranties & insurance, its only going to be worthwhile if you find yourself unlucky enough to have to claim on it...! But I wonder why most people seem to write 'GAP' in capitals...? Isn't it just 'gap' as in the gap between what its worth and what you paid? Or am I missing something?
Neil
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GAP = Guaranteed Asset Protection
Blue
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Personally, like any insurance, I believe it's not worth it unless you really can't afford to take the risk. I'm insured fully comp, but without protected NCD - this is just insurance insurance! - on a brand new car. If the worst should happen, I would lose an average £3,000 (my car will depreciate by £6,000 over 3 years) but if I paid the premium, I'm guaranteed to lose £300.
The underwriters calculate the likely value of claims, turn this into preiums charged, and add a bit for the insurance company. On average, you're gonna lose.
Another thought - isn't insurance supposed to protect against losses? The standard motor insurance does this. Gap insurance goes a step further - it puts the insured in a position where they would be better off if the worst should happen. That's more like a punt than insurance. I wonder if anyone allows their car to be nicked just before the three years is up to get themselves back into a brand spanking new car?
Mattster
Boycott shoddy build and reliability.
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Try looking at your car insurance policy first. Mine would have bought me a brand new replacement car if it had been written off or alternatively if the repair cost over 50% of list price in the first 12 months.
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It's usual for car insurance policies to offer, as standard, the replacement of a car less than 12 months old with an equivalent brand-new one if it suffers damage over a certain percentage of its new price. I thought that GAP insurance was basically for when you took out a loan for a used car, and then after a while what with used car prices almost in free-fall, the value of the car if written off could be less than what you owed the finance company - then GAP paid the difference so you were not left out of pocket.
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