Gap Insurance...is It Worth It?

[EmzIQ]

Helooo everyone,

Had my lovely IQ for over a week now and I am still madly in love haha! First day it hasn't rained today though so may go out for a random drive!

The point of my post was to ask your opinions really as i don't know what to think.

I bought my IQ from new and the salesman obviously kept pushing GAP Insurance to me. I couldn't make my mind up to whether it was really a good idea or he was just a really good salesman haha. Obviously it sounds great to be able to get the full amount back that my car is worth new, if it is written off or badly damaged but at £34 it isn't cheap to me when my payments have already gone up with getting the IQ.

Any honest opinions welcome!

Thanks,

Em.

[JordaniQ]

Hey Emz

My friend recently had his s2000 sent to the scrapyard because some mad man set it on fire when we were out one night. He was devastated. It was his pride and joy. Until he remembered he bought gap insurance when he bought the s2k brand new at like 20 grand I think it was.

Now he's getting the 20 grand back from the insurance and he's planning to buy another s2k at the prices they are today, with money left over for a rotrex supercharger plus some carbon fibre bits.

So really, I'd say you don't really appreciate the value of gap insurance until something like this happens, and really only worth it on expensive cars that you're likely to thrash/get stolen/have accidents in that people covet.

When I turn 21 and sell the iQ for either the ft86 or 123d next year, I'll definatetly be picking up gap insurance for it.

Jordan

[Kip]

You also don't have to buy gap insurance from the dealer, there are third party insurance companies who will sell you gap cover and probably a fair bit cheaper than your pushy salesman, trying to hit targers and earn more commision for his own pockets.

Just done a quick internet search... One company has a customer quote saying their dealer wanted £390 for gap, and this insurance company only charger them £90 for exactly the same thing.

[FROSTYBALLS]

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, www.cargapinsurance.co.uk, www.click4gap.co.uk, 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).

Have a look at www.ala.co.uk who seem to offer flexible policies