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Gap Insurance For New Car?


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#1 Stupidmia

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Posted 21 February 2012 - 09:15 AM

Hi

I am picking up brand new car for the wife next week and was wondering about Gap Insurance?

I realise that dealers try to sell you this at inflated prices and it can be purchased online through several different companies.

Has anybody purchased Gap insurance recently and could recommend a reliable (now there’s a word that you don’t associate with insurance companies…so perhaps ‘more reliable than others’ is a better phrase) company?

I am buying the car (total price @ 12.5K) on finance over 3 years as follows:

@ 15% deposit
36 monthly payments
Final price to purchase (@ 40% of cost of car)

So what type of Gap insurance would be best in my situation?

Had a look at some of the guff on the internet, but a lot is from companies trying to sell it! I need good honest, impartial advice…and in layman terms!!!

Cheers

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#2 Mistermena

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Posted 21 February 2012 - 09:24 AM

What you have to remember is that if your car is written off (And I hope not) in the 1st year then the insurer will buy you a brand new car!... After that then the GAP kicks in. You have to weigh up if the cost of GAP is worth the extra money over the remaining period of ownership...

#3 cabcurtains

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Posted 21 February 2012 - 09:29 AM

The key point with GAP is if your in negative equity at any point, if you are you should buy GAP, but not from a dealer unless its negotiated to a sensible price.

If your not going to be in negative equity a return to invoice value policy might be more suitable.

Equity is the key word here.

#4 Stupidmia

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Posted 21 February 2012 - 01:01 PM

Hi...Thanks for replies so far.

The car will be insured on a multicar policy through Admiral....and they will only pay the market value (which we know is not the value to buy the same car of same age and spec etc).

Am I correct in thinking that for the sake of £120 to £140 for 3 years piece of mind (wouldn't like to be paying for a lower spec/older car, because that is what the insurance will cover) it may be worth it? Suppose it works out 40 to 50 quid extra per year...which you can save a proportion of by shopping around for your regular insurance.

In my situation...given I get a a good quote...it seems sensible.????

#5 jirehn

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Posted 21 February 2012 - 02:38 PM

Well having an insuarnce is really good, it is the manner of choosing the best among them.

#6 cabcurtains

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Posted 21 February 2012 - 06:52 PM

Assuming the car is 12.5k new and the interest is 5% flat per year the total amount payable would be 14.5k, 15% deposit leaves 12.5k ish as the amount owed when you drive off, so not a lot of negativity equity and there is no GAP to be covered.

So return to invoice could be more suitable, but this money could be better spent on lottery tickets!

I've sold cars to people and have had no deposit and left with 5k of negative equity and they never wanted GAP!

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