I've had a look at some of the previous discussions on gap insurance on here, but I was wondering if someone could recommend a reputable company? I have looked on google as per a previous post on here, but there are so many to choose from. Obviously I don't want to end up with a tin pot company that would go bust 5 minutes after signing up.
My current garage have offered me Gap for £350, which I feel is too much. I'm sure there are other companies out there that can offer it cheaper.
Many thanks.
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For some peace of mind look at the small print of the policy and see who underwrites the policy. All providers now have to be FSA approved.
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My recommendation is self insurance. Insurance is a gamble which the insurance Cos are much more expert than your or I. Just as they are expert at exploiting fears and miselling (which will never be found out, as most people don't claim).
If your worried about an insuaranc Co going bust, there will probably be another insurance Co somewhere wanting to sell you insurance to cover that risk.
My insurance policy takes away all the hassle, reduces stress, and delivers much more 'peace of mind' than any dealings I have had with the insurance industry.
No paperwork and the premiums are cheaper, too..!
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Hitachi is one I came across, and I think Car plan. Go to google and type GAP insurance, you'll get plenty there.
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Go to google and type GAP insurance you'll get plenty there.
I mentioned earlier that I had already googled. The reason for my question was that because there are so many to choose from, could anyone recommend a reputable one of the plenty google brought up.
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My recommendation is self insurance. Insurance is a gamble...
Oh, please! Insurance is spreading risk. Self-insurance means having your own 'reserve fund' and having to tie up capital for the purpose that you might otherwise put to better use. Insurance also smooths risk. Self-insurance might be affordable, but having to make a 'claim payment' can be disruptive.
However, whether gap insurance is worthwhile, let a loan a good deal at the prices on offer, is another matter. Think about when the last time your car was a total write-off. And the time before that. For most people the risk is very small. Think too about depreciation curves and the maximum potential payout in each year the policy covers. And the premium is how much??!!
And one might (like me) be happy that an insurance claim enables me to replace the lost vehicle with one the same.
Can one trust an insurer to pay out a fair claim amount? That's another matter...
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Hey Mr C Warner: are you sure you've spelt your name correctly? I thought it was Mr Cholmondeley Warner.
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A typical GAP policy will cost a motor finance house or a dealer £75. The typical mark up is 250% ish.
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Buy an ISA. Put your £300 into it. Drive carefully. You'll almost inevitably come out ahead.
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And most normal insurance policies I've seen will do "new for old" in the first year anyway, which is where the big depreciation hit is.
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>> My recommendation is self insurance. Insurance is a gamble... >> Oh please! Insurance is spreading risk.
It is only worth it if you know you are at risk. But then of course you cannot get cover. E.g. many people who have been flooded suddenly find out they cannot get insurance against flooding.
My favourite clause is on a home insurance policy: they will cover you for damage from burst pipes while you are away from home, but only if your heating system is completely drained of water.
I.e. they won't cover you at all. But they cannot say that in simple English. It's like they have some genetic defect that makes them into weasels.
>Self-insurance means having your own 'reserve fund' and havingto tie up capital for the purpose that you might otherwise put to better use. Insurance also smooths risk. Self-insurance might be affordable but having to make a 'claim payment' can be disruptive.
Not as disruptive as making a claim with an insurance Co. As the victims of recent flooding in the north of England can testify.
It took a friend of mine > 1 year to get a major insurance Co to pay out for a written off car. Solicitors and all sorts. They had no good excuse, that was just their standard of customer service.
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"I thought it was Mr Cholmondeley Warner. "
Pronounced Chumley to rhyme with Bottomley.... :)
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Seems like a lot of people think any kind of motor insurance is a waste of money judging by the number of uninsured drivers.(I only have RTA)
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Parents in law went and bought a second hand 53 plate Focus in Decemeber 2003. For cash... They were sold and bought GAP insurance for about £500..
But then they were ripped off on their servicing again. They never learn.
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"Parents in law went and bought a second hand 53 plate Focus in Decemeber 2003. For cash... They were sold and bought GAP insurance for about £500.."
I would have thought that was mis-selling, if it was the usual sort of GAP protection (ie meant to cover the gap between insurance settlement and finance) if they had no finance. Are you sure it's too late for them to try and get their money back?
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I would have thought that was mis-selling if it was the usual sort of GAP protection (ie meant to cover the gap between insurance settlement and finance)
Garage told me that Gap insurance isn't just for when buying a car on finance. You can still take it out on a straight cash deal.
In reply to martint123. The car I'm buying is 15 months old, not new.
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There is also 'return to invoice price' gap insurance which insures depreciation. You pay £10,000 for a vehcile, after 3 years you write it off and it's worth £5,000, Gap insurance will pay the other £5,000.
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.... But then of course you cannot get cover. E.g. many people who have been flooded suddenly find out they cannot get insurance against flooding.
Those insurers who stopped accepting customers from flood areas are now back to taking them on - they were inundated with new business, possibly from those who "self insured" and didn't like the thought of having the downside of it.
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In March I purchase a 8 month old Zafira 1.9 CDTI Design for £13000 from a Vauxhall Main Dealer. I was offered GAP , but declined on the basis I wanted to understand more about the product. Paid the deposit for the car and was told I could purchase the GAP upon my return to settle up for the car and collect it. Their deal was £299 for 'return to invoice' GAP.
At the time 'CLICK4GAP' premium was £170, plus I could get another £25 via QUIDCO. Return to the dealer on the day to collect the car and was asked what I wanted to do re the GAP. Told him that I could get it for £145 (net cost) - he matched it. Simple, no fuss.
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