GAP insurance. Good idea?

[chriswt]

Has anyone purchase GAP insurance privately?

I recently bought a Saab Aero and was offered 3yrs GAP for £300 but declined. The car is on finance and I paid top dollar for it so due to the appalling depreciation Saabs I think GAP would be a good idea.

3 years cover purchase privately from http://www.shortfallcover.co.uk is only £160 and very appealing but I'm worried that this might not be the same type of cover offered by dealerships.

Any comments guys?

 

[Shude]

Read: http://www.mbclub.co.uk/forums/showthread.php?t=4310

 

[Benzowner]

At the end of the day, it is an insurance against total loss. I paid for GAP insurance and didn't need it. It's a calculated risk I guess whether or not to take the insurance.

 

[w124coupe]

I would say if you buy new or nearly new then GAP at £150-170 for 3 years is a good bet - you can choose the max payout and therefore control the premium.

Out of my colleagues at work, only one has claimed BUT his was at just over 2 years and he had over £12,000 from the GAP insurance payout.

His car was nicked off the drive following a break-in while he and the family slept upstairs - never to be seen again.

Insurers gave market value at the 2yr+ age for total loss and GAP made it back up to his original invoice. There was a bit of to and fro re the insurers settlement but then the money came quickly (Norwich Union).

One thing for sure, if you buy it then buy off the web separately from the sale. Its another big commission item for the car salesman - often costing 60% more than the web and then they lump it into the finance figure.

Oh, and ALL the policies will NOT pay a penny if you lose the original proof of purchase!

 

[chriswt]

Thanks for the advice. I thought it might be a case of dealers adding a large commission to the sale.

 

[maldon]

I paid through the nose on the first ML and by sheer fluke, only 3 months after I bought the car it was written off and the other partys insurers actually paid out more than I paid for the car (from main dealer).

Bargained the (again main dealer) to death on the second ML and I may have paid about two hundred quid. as certainly tons less than the first one.

There are some good deals on the net.

for a couple of hundred quid, my own view is that is is def worth having.

 

[pammy]

I have taken ot out on DDs new Ka mainly because she is young and heaven forbid - but should she have an accident then it's fully covered. Worth the peace of mind.

 

[Shude]

I have taken ot out on DDs new Ka mainly because she is young and heaven forbid - but should she have an accident then it's fully covered. Worth the peace of mind.

The other side of the coin is that no matter what age or skill the driver a 3rd party could cause a collision resulting in the car being totalled.

 

[pammy]

The other side of the coin is that no matter what age or skill the driver a 3rd party could cause a collision resulting in the car being totalled.

Indeed! And with lack of experience etc might mean she can't get out of the way as well as someone else might.

 

[219]

I think it is the case that a lot of insurers will replace a vehicle written off or stolen in the first year , so this other insurance is probably only required from year two onwards .

Perhaps this is something that can be bought as a 'top up' from your existing insurer after your car blows out the candles on its first birthday cake ?

 

[Thmsshaun]

Hmm. Didnt realise that this type of cover existed.

 

[w124coupe]

Most GAPpers (for return-to-invoice cover) will only quote for 6 months after purchase.

When I bought, it was far cheaper to get a separate web policy.

 

[fuzzer]

the more expencive the car , the more you need it.

Plus remember , finance deals over 25k are unregulated .. thus you can't do the 50% thing and walk away as well as other things..!!

Gap helps you sleep at night at least , especially on a new sabb ..!!!!