Gap Insurance

[dee s]

Just taken delivery of a Gen 3 and wow what a brill car. However I think i upset the dealer by not taking Gap insurance for £299. Anyone have this insurance and is it necessary ?

[reidy]

Gap Insurance

"If your car is declared a write off by your vehicle insurer in the event of a theft or accident there may be a shortfall between the insurer’s market value and the amount required to settle any finance agreement. This shortfall may be quite significant depending on the outstanding period on the finance agreement and the cars depreciation and you will be responsible for this shortfall. In the event of this occurring, a GAP Insurance policy will bridge the gap between any shortfall and will pay the finance company the outstanding amount."

[cabcurtains]

This depends on the equity in your finance, if you put a small deposit in then you will be in negative equity now. If you put a 25-30% deposit in then you shouldnt need it.

You can buy it for more like £100 online at anytime.

[pobrown]

3 year GAP from my dealer (with loads of clauses) £300

4 year GAP from an on-line broker £188 (The 3yr cover was about £110)

Whether or not you need it depends on personal circumstances, but I'd never buy it from a dealer.

[Lorna2]

I had GAP on my Yaris, the finance on the car was 0% Happy enough that I paid the GAP,didn't need it but sure it was there 'just in case'. Same as any insurance, if you buy it you won't need it, but if you don't buy it, you will need it. If I was getting another car on finance I would get the GAP as I wouldn't want to be left still paying for the car if it ended up a write off and I could just imagine the car insurance company giving less than market value.

[Opifex]

3 year GAP from my dealer (with loads of clauses) £300

4 year GAP from an on-line broker £188 (The 3yr cover was about £110)

Whether or not you need it depends on personal circumstances, but I'd never buy it from a dealer.

Useful information - thanks.

Whether to take GAP or not depends on how risk-averse you are. I was offered it but didn't take it because I reckoned that I'd been driving for over 40 years and hadn't written a car off yet so the chance of it happening in the next 3 years must be low. It's worked so far. :)

[Chris Dance]

I got my Gap insurance from the Toyota dealer when I bought the car new. To be honest I could not work out what it cost as it was in the overall package of buying the car. There were lots of items listed but the dealer said they were all in the original price agreed. There was a special deal on at that time so it was all part of that. I am pleased I have it just in case of a write off.

[cootuk]

Use it as another negotiating tool to get a discount on another item.

[CharlotteV]

Hi don't normally do this but I work for a leasing company who sell gap insurance.

There are 3 main types of gap insurance. Finance gap insurance - this pays the difference between your Toyota's value on the day it is written off and clears any outstanding finance.

Return to invoice - this pays the difference between your Toyota's valuation on the day it is written off and clears the outstanding finance or the difference to take you back to the invoice price you paid which ever is the higher.

Vehicle replacement pays the difference between your Toyota's valuation and the amount you would need to spend to buy another Toyota on a like for like basis. For example if my Yaris was written off it would pay the difference between my Yaris value and the amount I would need to spend to go and buy another Yaris on a like for like basis. I paid just less than £10,000 for my Yaris. It was a pre reg so if it now costs £11,000 to buy a pre reg that it is amount I would get.

I would Google Gap insurance as you can buy policies on line for pennies ok well alot less than main dealers anyway.

[Terry953]

Hi don't normally do this but I work for a leasing company who sell gap insurance.

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I would Google Gap insurance as you can buy policies on line for pennies ok well alot less than main dealers anyway.

Superb Advice CharlotteV - Words of wisdom from the horses mouth - MANY THANKS

I shall file your reply for future reference.

I tried earlier to suggest to the post originator to spend 15 minutes on the internet and be ready for a nice surprise, but the site went in to a maintenance mode and I couldn't send it - but yours reply is the dogs bees knees.

[ian rooke]

Hi when my Gen 2 was written off at 6 weeks old my insurance paid out full market value as most comp insurance will if written off in the first year so why do you need gap insurance in that year.

[mandon75]

I have just cancelled my gap insurance offered to me by Lister's Toyota through a company called MapfreAbraxas as I have found a deal over half what they were charging and offering more (£299.04 down to £133.56).

I Purchased a Gen2 TSpirit nearly a fortnight ago and spoke to my Father who works in the trade and he told me that dealerships will charge a premium for this service as they are on commission.

Although the idea behind it is just a safe guard, I will still be purchasing insurance as a safety net.

[mandon75]

http://www.moneysupermarket.com/car-insurance/gap-insurance/

[CharlotteV]

Hi when my Gen 2 was written off at 6 weeks old my insurance paid out full market value as most comp insurance will if written off in the first year so why do you need gap insurance in that year.

You where lucky your insurance company offered you new for old within the 1st 12 months.

A lot of insurance companies are coming away from this as it costs them a small fortune. But if your insurance company offer you this you can defer the start date to coincide with the end of your own cover. So instead of having to pay for three years you could pay for two, the prices vary from supplier to supplier but it can save you even more money.

That said you need to check check and double check as some insurance companies have terms about mileages etc. You would have to be completely happy that your own motor insurance covers you as if your bought a deferred policy and your own insurance company did not pay out you would be left high and dry. If possible get your insurance company to put it in writing.

P.s Thank you Terry953 its a pleasure.

[mandon75]

3 year GAP from my dealer (with loads of clauses) £300

4 year GAP from an on-line broker £188 (The 3yr cover was about £110)

Whether or not you need it depends on personal circumstances, but I'd never buy it from a dealer.

Useful information - thanks.

Whether to take GAP or not depends on how risk-averse you are. I was offered it but didn't take it because I reckoned that I'd been driving for over 40 years and hadn't written a car off yet so the chance of it happening in the next 3 years must be low. It's worked so far. :)

It's not just your driving you're insuring it all the nutters on the road that might hit you and write your car off!!

[cootuk]

Also consider if you change from a manual to auto, you might go all USA and press the accelerator instead of the brake...

[ian rooke]

Hi when my Gen 2 was written off at 6 weeks old my insurance paid out full market value as most comp insurance will if written off in the first year so why do you need gap insurance in that year.

You where lucky your insurance company offered you new for old within the 1st 12 months.

A lot of insurance companies are coming away from this as it costs them a small fortune. But if your insurance company offer you this you can defer the start date to coincide with the end of your own cover. So instead of having to pay for three years you could pay for two, the prices vary from supplier to supplier but it can save you even more money.

That said you need to check check and double check as some insurance companies have terms about mileages etc. You would have to be completely happy that your own motor insurance covers you as if your bought a deferred policy and your own insurance company did not pay out you would be left high and dry. If possible get your insurance company to put it in writing.

P.s Thank you Terry953 its a pleasure.

Hi there was no need to ask for it in writing as it was stated on the original insurance documents and is pretty much normal for most comprehensive insurance.

[johalareewi]

However I think i upset the dealer by not taking Gap insurance for £299.

When I refused the GAP insurance as 'too expensive' and 'I can get it cheaper on the internet', they dropped the price to £99 and it covers the 'gap' between write off value, and cost of new replacement prius (for 3 years).