formatzero Posted February 21, 2018 Share Posted February 21, 2018 Anyone know if this is worthwhile.I'm buying a daily for 10k and dealer says he has included GAP insurance in price,which to be honest I had never heard of . Quote Link to comment Share on other sites More sharing options...
Bobbeh Posted February 21, 2018 Share Posted February 21, 2018 Can you afford to pay it off if the car gets written off? If not, take the gap insurance Quote Link to comment Share on other sites More sharing options...
BoGlE Posted February 21, 2018 Share Posted February 21, 2018 Okay so as cars usually depreciate, if for instance you write your car off in 2 years or whatever, the car will of lost money and you'll be stuck with a debt with nothing to show for it. So gap insurance will cover you from the agreed sale price till the end of the finance etc. So no matter how much the car depreciates over the years, you'll always get the price you paid back if you crash it beyond repair. Quote Link to comment Share on other sites More sharing options...
Ric Posted February 21, 2018 Share Posted February 21, 2018 you can usually get gap insurance from a supplier online for a lot cheaper than a dealer is offering. E.G audi wanted 700quid for a 3 year policy for my new car, i found it online for a 5 year term for £250. Quote Link to comment Share on other sites More sharing options...
Bobbeh Posted February 21, 2018 Share Posted February 21, 2018 you can usually get gap insurance from a supplier online for a lot cheaper than a dealer is offering. E.G audi wanted 700quid for a 3 year policy for my new car, i found it online for a 5 year term for £250. Thats interesting, got any recommended companies for it Ric? Might be worth looking into for future deals. Quote Link to comment Share on other sites More sharing options...
Ric Posted February 21, 2018 Share Posted February 21, 2018 Thats interesting, got any recommended companies for it Ric? Might be worth looking into for future deals. https://www.directgap.co.uk/ & https://www.ala.co.uk/ were 2 i looked at, Direct been the cheapest for me Quote Link to comment Share on other sites More sharing options...
formatzero Posted February 21, 2018 Author Share Posted February 21, 2018 Thanks,good info,dealer was £360, online £92 Quote Link to comment Share on other sites More sharing options...
Bobbeh Posted February 22, 2018 Share Posted February 22, 2018 Thanks Ric Quote Link to comment Share on other sites More sharing options...
Scooter Posted February 22, 2018 Share Posted February 22, 2018 Okay so as cars usually depreciate, if for instance you write your car off in 2 years or whatever, the car will of lost money and you'll be stuck with a debt with nothing to show for it. So gap insurance will cover you from the agreed sale price till the end of the finance etc. So no matter how much the car depreciates over the years, you'll always get the price you paid back if you crash it beyond repair. er that's not right is it? I though 'Gap' insurance was to protect you from the gap between what you owe on finance vs what they pay out? ie you won't have to dip into your pocket if the cars written off, not what your last sentence implies (sorry if I've misinterpreted) Quote Link to comment Share on other sites More sharing options...
BoGlE Posted February 22, 2018 Share Posted February 22, 2018 er that's not right is it? I though 'Gap' insurance was to protect you from the gap between what you owe on finance vs what they pay out? ie you won't have to dip into your pocket if the cars written off, not what your last sentence implies (sorry if I've misinterpreted)Ahh. Well that's how the young salesman explained it to me not long ago. Maybe I wasn't listening properly haha. But yeh, you're right. Here's what Google says: Quote Link to comment Share on other sites More sharing options...
Scooter Posted February 22, 2018 Share Posted February 22, 2018 Ahh. Well that's how the young salesman explained it to me not long ago. Maybe I wasn't listening properly haha. To be fair I think it's their job to make sure you aren't Quote Link to comment Share on other sites More sharing options...
Big Mark Posted February 22, 2018 Share Posted February 22, 2018 er that's not right is it? I though 'Gap' insurance was to protect you from the gap between what you owe on finance vs what they pay out? ie you won't have to dip into your pocket if the cars written off, not what your last sentence implies (sorry if I've misinterpreted) Likewise, I'm sure Gap insurance is the difference between car value and finance outstanding, so that you are not left owing money if the car is written off. Personally myself and a friend bought 2 almost identical new VW's a few years back and they came with a years free insurance from VW but neither of paid extra for Gap. Friends car got written off in the 11th month and she got a brand new VW from the insurance Mine got written off after 2.5 years and after a little haggling with the 3rd parties insurer the payout covered the cost of the outstanding finance plus £200 to me. So maybe we were both lucky but to me Gap seems like just an excuse for dealers and insurers to extract some more of out money. Quote Link to comment Share on other sites More sharing options...
Ric Posted February 22, 2018 Share Posted February 22, 2018 er that's not right is it? I though 'Gap' insurance was to protect you from the gap between what you owe on finance vs what they pay out? ie you won't have to dip into your pocket if the cars written off, not what your last sentence implies (sorry if I've misinterpreted) It depends what you buy. Standard Gap insurance covers the GAP as you say. Gap "Return to invoice" will cover the difference of the current market value of the car and the gap back to the invoice price you paid. So you pay 40k, car is worth 25k when you bin it. The insurance will give you 25k and GAP will give you 15k Quote Link to comment Share on other sites More sharing options...
Al Massey Posted February 22, 2018 Share Posted February 22, 2018 So maybe we were both lucky but to me Gap seems like just an excuse for dealers and insurers to extract some more of out money. It’s another revenue stream for salesman. It’s part of how they get paid. Quote Link to comment Share on other sites More sharing options...
Graham1984 Posted February 24, 2018 Share Posted February 24, 2018 It depends what you buy. Standard Gap insurance covers the GAP as you say. Gap "Return to invoice" will cover the difference of the current market value of the car and the gap back to the invoice price you paid. So you pay 40k, car is worth 25k when you bin it. The insurance will give you 25k and GAP will give you 15k This. A guy I work with got a GAP policy on a new van at the end of 2015 and wrote it off a few months ago. Would of lost a few thousand if it wasn't for the policy, so well worth it IMO. Quote Link to comment Share on other sites More sharing options...
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