GAP Insurance

[MRCLICKCLICK]

New car next week - looking at GAP insurance - any advice / companies?

[Nicksey]

Give Allianz a go. My renewal was only up by £30.

[ColinB]

If you’re considering whether to get GAP insurance, then this is worth a read:
https://www.moneysavingexpert.com/insurance/car-insurance/gap-insurance/
Summary:
“… gap insurance isn't essential as your car insurer should ALREADY pay out its value for a replacement car of a similar age and condition. Gap insurance is essentially there if you've a finance deal and would owe more to the finance company than you'd get from the insurer.”

If you’ve already decided you need it and are just wondering where to get it, then don’t go with the dealer’s suggestion, make sure you shop around as per the linked article.

[Karoq]

Waste of money IMO. When di you last write off a car? I've never had it never needed it. Dealers love selling it, they get huge commission.

[JB]

I have a long time friend [car salesman] very soon to retire describe it as just another money spinner in this day and age for the dealers.

[Lord Voltermore]

I dont fully understand the virtue of Gap insurance but it may make sense for some finance deals. Especially back when it was not unusual for a 3 year old car to only be worth 40% of its price new . (leaving aside big discounts sometimes given on purchase price, but also any extra paid in interest on a finance package) 

In round figures I paid £22K in for my new Mk4EX  in 2021.(No finance)   After 3 years I got £16K in part exchange against a new Jazz  (Ie it retained 72%  of what I paid for it)        Due to inflation (and maybe exchange rates and extra profit for Honda) a new Jazz advance  now cost about £28K  ( )   But even so my 2021 jazz  contributed 57%  of the cost  to change.    (I know I could maybe have got some discount on the £28K list price , but wouldnt then have got £16K trade in    ) 

Does GAP insurance still make sense with such high retained value?   

Do you  have Gap insurance outside the UK?  -I know in some countries  you can get basic third party insurance   then  extend this to fully comprehensive with a separate insurance policy  called Casco Insurance. The Casco could be with a different insurance company to the  3rd party. 

To clarify, Gap insurance offers protection if for instance a car is extensively damaged and no longer worth what you still  owe  on a finance contract. 

[Tombola]

I have never taken out GAP insurance but I don't have finance when I buy, like all insurance policies it will probably be a minefield of small print get out clauses, Personal protection insurance is another racket to get you to part with your hard earned

[Mr Onion]

When the insurance company wrote off our 09 Jazz back in December 23 (much against my will I hasten to add*) the payout was extremely fair and in line with cars for sale of similar age and condition

*yes I know I could have bought the car from the insurance company and had it repaired myself, but that would have left us without a car for weeks, or maybe months while the parts were sourced and the repairs completed. If the insurance company had repaired it we would have had a courtesy car for the duration which would have resolved that problem

[DAN@ADRIAN FLUX]

Hi.
Just to let you know that we offer a 12 month product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP insurance we feel for some customers it can make a cost effective alternative.
Please feel free to take a look if you wish.
https://www.adrianflux.co.uk/extras/total-loss/
Regards,
Dan.

[MRCLICKCLICK]

I have just checked - in the policy it says "New car replacement for cars up to 1 year old;" - from comments above - no need to think about GAP insurance till a years time??

[DAN@ADRIAN FLUX]

Hi.
Yes, most insurance policies come with this benefit subject to you being the vehicle's first owner.
Regards,
Dan.