Tracker vs Gap Insurance

[Tiim533]

Just some advice please, hopefully based on personal experience.

I'm getting a new MB E350 Convertible in July, and a friend of mine suggested I get a tracker fitted (Cobra) as a friend of his had his new MB SL stolen on the same day he had it delivered. (They broke into his house and pinched the keys).

I mentioned it to the dealer, who said to get Gap Insurance instead and don't bother with a tracker.

The costs are pretty much even, though I'd expect my regular car insurance would be cheaper with a tracker fitted.

Anyone out there with any views on this?

Many thanks
Tim

 

[whitenemesis]

Your insurer may insist on having a tracker fitted. It rarely reduces premiums though.

Would you want your car back were it to be stolen, possibly ragged?

Wouldn't the insurers replace with another new car were it to be stolen so new?

 

[wemorgan]

Don't expect the dealer to give impartial advice on Gap insurance.

Gap insurance is more relevant when buying new cars on finance and the remaining finance may be greater than the car's value. There are other reasons, but that's the key one IMHO.

Get neither the tracker nor Gap insurance. Statistically you're more likely to not need them than need them.

 

[wivenhoe]

If you insure with Esure they provide at no extra cost a replacement new car if your new car is written off or stolen in the first year - others will provide the same cover I am sure. If you want a good laugh ask your dealer what GAP would cost and then go online and look at what you can get as a GAP separate and standalone policy - the dealer will be about treble the cost which is why he is trying to deter you from the tracker. Also a dealer has to charge you 20% tax but a broker 6%. You can get more info and a quote here

Gap | Gap Cover Insurance

I have a tracker fitted - it didn't reduce the insurance cost but I went with it for peace of mind - you can track the car yourself and tell the police where it is if they can't be bothered. Thing to remember is that you cannot transfer the tracker to another car if you sell it - you can transfer the annual fee but not the unit itself. It is frustrating that MBRACE is not available in the UK !

 

[PenelopePitstop]

It all depends if you want your car back or your money back?

Discussion about GAP Insurance:
http://www.mbclub.co.uk/forums/insurance-finance/191215-gap-insurance-private-purchase.html

 

[M12MKD]

Personally after seeing some of the police programmes and how they treat your pride and joy I'd rather go for GAP and get a new car.
Personally I've never made a claim but I've taken a policy out on my last 2 new cars just in case.

 

[geraldrobins]

Surely, if your car is recovered and damaged your insurance company will repair it and return it. GAP is only of any use if the car is written off or stolen and not recovered.

 

[FLIPSKNACKER]

Gap insurance is more relevant when buying new cars on finance and the remaining finance may be greater than the car's value. There are other reasons, but that's the key one IMHO.

Not any more it isn't. This is an "old fashioned" view of GAP insurance.

As I've discussed here:http://www.mbclub.co.uk/forums/2107758-post30.html, there are three main types of GAP insurance:

Finance GAP insurance:
Pays the difference between your Motor Insurance policy payout and the amount outstanding on finance at the time of claim.

You'll find only a small selection of companies (aside from Motor Dealers) selling Finance GAP insurance these days as it's generally regarded (with the exception of policies to cover Contract Hire Agreements) as a poor/inferior type of GAP insurance.

Invoice GAP insurance:
Pays the difference between your Motor Insurance payout and the original on-the-road invoice price (after discounts but before part exchange allowance and deposit(s) etc) to buy the vehicle first time around.

These days Invoice GAP insurance is the most popular type of GAP insurance (if not only because most Motor Dealers don't offer any superior policy). In addition most companies now offer a combined Invoice & Finance GAP insurance policy which, in the event of write off, pays the difference between your Motor Insurance payout and the greater of either, the original on-the-road invoice price paid for the vehicle OR the amount outstanding on finance at the time of claim.

Finally, there's also...

Replacement GAP insurance:
Pays the difference between your Motor Insurance payout and (in the case of a vehicle bought brand new and of which you were the first registered keeper) the cost of replacing the vehicle with a brand new version of the same (or nearest equivalent vehicle at the time of claim - even if the replacement vehicle costs more than you bought the vehicle for first time around.

The view that you're referring to, simply stems from the fact that Finance GAP insurance was the first type of GAP insurance to hit the market and is the type with which more people are familiar, but in reality, generally speaking Finance GAP insurance for a car that you're buying on finance, is now the most inferior type of GAP insurance that you can purchase.

Just some advice please, hopefully based on personal experience.

I'm getting a new MB E350 Convertible in July, and a friend of mine suggested I get a tracker fitted (Cobra) as a friend of his had his new MB SL stolen on the same day he had it delivered. (They broke into his house and pinched the keys).

I mentioned it to the dealer, who said to get Gap Insurance instead and don't bother with a tracker.

The costs are pretty much even, though I'd expect my regular car insurance would be cheaper with a tracker fitted.

Anyone out there with any views on this?

Many thanks
Tim

Whether to get a Tracker OR GAP insurance... a Tracker is only going to potentially help you if your car is stolen and increase the chances of you getting it back. GAP insurance on the other hand would step in to help in the event that your car is written off after an accident, fire or theft etc.

Arguably there's therefore an argument for both... but personally, I'd go for GAP insurance over a Tracker every time - that's not because I sell GAP insurance for a living, but rather, if my car was stolen, I don't think I'd want to increase my chances of getting it back!

Incidentally, if you're buying a brand new vehicle, you may already have a form of GAP insurance for the first year in the form of New-For-Old cover from your Motor Insurance policy. It's not that straightforward though as you need to read the terms of their New-For-Old cover carefully because some New-For-Old schemes are great, whilst others really aren't. If yours checks out though, some GAP insurance providers (rarely the Motor Dealers) will allow you to purchase GAP insurance but defer the start date so that it only kicks in from the beginning of year 2 onwards. Whilst other companies will allow you to wait up to 12 months from the date of first registration to buy the GAP insurance policy.

 

[wemorgan]

what % of clients claim on their GAP insurance?

 

[Teflonso]

what % of clients claim on their GAP insurance?

Probably the same % who get their car nicked.

Buy a tracker - get your car returned after having it ragged within an inch of its life, for as long as you own the car. Insurance will pay for cosmetic damage but not the gearbox with synchro that will disintegrate two months later. Or, if car not located you get market value for the car. If your car is rear ended on a motorway and written off, you get market value.

Buy gap insurance - your car goes in a container to Africa and you get a brand spanking new replacement, even if the old one was almost 4 years old. Or if your car is rear ended and written off, you get a new car.

It's a no brainer. If you are terribly anxious about crime or live in Scumsville and have the habit of leaving your front door open and the keys on the stairs, buy gap insurance.

ala.co.uk have a good reputation and are a lot cheaper than dealer gap insurance. I reckoned the premium was a good investment for 4 years cover on a £47k car. I live in a quiet cul-de-sac, the car is garaged and we have high end security (a neighbour does that stuff professionally) but the gap insurance looked like a good bet solely for the chance of some half wit writing off my pride and joy.


.

 

[wemorgan]

Not any more it isn't. This is an "old fashioned" view of GAP insurance.

Is this an example of a financial product being reinvented to help drive sales?
IMHO it is a product sold on the back of fear - just my opinion of course.

Probably the same % who get their car nicked.

Of course, but what % is that? 1%, less, more?

 

[gaz_l]

When I bought my SLK there were 3 direct pitches as up-sells, gap insurance was one, I think the other 2 were paintwork and wheel & tyre. I refused them all, as I'm of the opinion that life's generally risky and you've got to shoulder some yourself. Subsequently I heard that if the salesman doesn't flog at least one then they don't get their commission on the sale.

This suggests to me that the insurance is therefore just a money-spinner and of more benefit to the insurance company than the customer. I'll pass..

Cheers,

Gaz

 

[Dizzy]

Serious car thieves today carry a device which can pinpoint the whereabouts of a tracking device on a vehicle and they then remove it.

 

[Power_n_Glory]

Serious car thieves today carry a device which can pinpoint the whereabouts of a tracking device on a vehicle and they then remove it.

Is that right? Well that totally negates the point, as you really don't want it back after an opportunist thief has thrashed it half to death which is what you're left with if the pro's remove it. They have been very successful for expensive bikes, lots recovered, so do car thieves know more than bike thieves?

Have never bought upgraded insurances and SO FAR had no need to regret it. Check the terms as there are so many get out clauses a claim could, in any case, be rejected and that would be even more annoying.

 

[Dryce]

so do car thieves know more than bike thieves?

It's a matter of cost.

Security costs the owner but makes it more difficult (ie. costly) for the bad guys.

As time goes on the bad guys adapt to new security features - essentially lowering the cost of defeating them.

The difference between a so called professional and an opportunist is basically investment - the pro is prepared to put more time and effort (ie. spend more) to successfully defeat security.

So if cars are prefered to bikes by those willing to put in the effort then it simply indicates that the return from that investment is lower with bikes (fewer high end bikes? Lower value?).

 

[Sky Bear]

Most expensive stolen cars, Mercs etc, that may have a tracker fitted are not ragged. They do not want to attract attention and be stopped. They will drive them 20 miles or so away and park them up in a quiet residential area and leave them for a couple of days to see if they are recovered. If still there they will then move them on to their lockup etc to strip or ship. In a previous life I have plenty of experience of catching such criminals and have seen this practice repeatedly.

We would not pursue a tracker vehicle but shadow it from a distance so again no ragging. I even had my own vehicle recovered using tracker after the local main dealer employed a less than honest staff member who reprogrammed an extra key and sold it on with address details. Mine was the fourth vehicle taken this way and the first with a tracker. The others were not seen again. I got mine back in 36 minutes parked up quietly as described.

SB

 

[Beltane]

A question. With the command online and its integrated GPS/SIM card allied with the "Mercedes Connect Me" do you need a tracker?

The Connect Me app has geofencing of the vehicle and a locator.

 

[developer]

GAP Insurance can be very cheap and therefore cost effective.

On my used car I got 3 years "invoice value" GAP for around £1.50 a week.