peugeot partner - GAP Insurance - capricorn

I'd be grateful if forum members could offer some advice on GAP insurance.

I'm about to take possession of a 7 month old Peugeot and as it's a lot of money to me wonder if GAP insurance is worth taking out.

The dealer wants £399 for 3 years but I'm sure it's less expensive on the net.

But are there things I need to know before I buy so I don't fall into any traps or very basically if it's really a good idea anyway.

Any advice gratefully accepted.

Thank you.

peugeot partner - GAP Insurance - Auristocrat

Three types of GAP insurance: Vehicle Replacement (VR) - which covers the cost of a new replacement car (only available on new cars); Return to Invoice (RTI) - covers the difference between the insurance payout and the original purchase invoice or the outstanding settlement figure owed to your finance company (whichever is the greater, and up to the claim limit you have chosen); Finance GAP - covers you only for the difference between the insurers payout and the amount you have left to pay on finance.

Dealers commonly charge £200 - £500 - these GAP policies tend to have no excess. Third Party brokers (Car Care Plan,,, etc) are cheaper, can provide cover for up to 4 years, but some have a £250 excess for example. Sometimes dealers will match the cost of GAP insurance as part of the car purchase deal.

For new cars, some insurers will replace a car if written off with a new one - some brokers can defer the start of the GAP insurance by one year to cater for this.

GAP insurance has been the discussed a few times previously on this forum - some like it, and some view it as a waste of money.

I have had GAP insurance on our new cars since 2001 (six new cars), usually through Car Care Plan (via the Civil Service Motoring Association), and the most I have paid for three years cover on a new car is £ 178. I view it as worthwhile as it provides extra protection, and, relatively cheap (ie if the cost to change of the new car is £ 7000, £178 is 2.54%). Others may disagree.

Before buying,check the basis of claims settlement - as regards excesses (how will these be covered (paid by you or deducted from the settlement), and how the car will be valued in the event of a loss (ie, will they rely on your insurers figures, or will they value the car themselves).

Edited by Auristocrat on 03/02/2012 at 10:52

peugeot partner - GAP Insurance - Ethan Edwards

GAP insurance is fantastic. The Lloyds syndicate that I used to work for made huge profits on that class of business, even allowing for the 50% commission on the premiums paid to the dealer who sold it to the punters.

Good job they didn't realise that you can buy it from any source and virtually always much cheaper. Personally I don't buy it at all, but it depends how much of a risk taker you are.

peugeot partner - GAP Insurance - RT

Personally I don't buy it at all, but it depends how much of a risk taker you are.

I don't buy it either - in one sense it's not even down to risk, the gap that's being covered is essentially normal depreciation that owners should be covering already in some way.

The only time a big hit occurs is with a brand new car as depreciation is so high on day 1 - after that it's just normal depreciation.

peugeot partner - GAP Insurance - dieseldogg

We did not avail of it for the Octavia, £300 for 3 years, which was keenly priced from the supplying dealer. But our insurance with the UFU included 2 years "new for old" cover.

Pondering whether to take out for Tiddles toyota, but were quoted £400 for a less expensive car??

I had indeed considered arranging privately.

Must chase up


peugeot partner - GAP Insurance - tony g
Auristocrats description of gap insurance is spot on ,it's something I sold lots of when I worked as a finance manager ,it's much better value than ppp which is very poor value.

The cost for gap insurance is low because the possibility of a claim is remote.

However if your car is written off or stolen it's a great product.

Because the cost is low I would recommend it,

Tony g
peugeot partner - GAP Insurance - ijws15
Another rcommendation.

Approx £100 for 3 years and less pain if the vehcile is written off.

SWMBO had an 18 month old Audi written off and since then we have allways bought it - but not from the dealer.
peugeot partner - GAP Insurance - capricorn


That's a very comprehensive reply and told me things I didn't know thank's for your time and trouble.

I've come to the conclusion that it's worth me getting a few quotes and the advice I've been given has helped me decide.

Thanks to everyone else who responded as well, it is appreciated.

Best wishes.

Edited by capricorn on 04/02/2012 at 09:16


Value my car