Help with Gap Insurance

[ParisYaris]

I will be picking up my new Yaris in a few weeks time and I am considering buying GAP insurance.  If I buy GAP insurance, do I still need to buy the normal compulsory car insurance due every year. 

Also, do most people that buy a new car tend to buy GAP insurance?

Thanks!

[FROSTYBALLS]

24 minutes ago, ParisYaris said:

I still need to buy the normal compulsory car insurance due every year

Car insurance is a legal requirement - so yes. Aside from that if you're buying the car on finance, it is often a requirement of the finance agreement that the car is adequately insured.

Some car insurance policies will provide a replacement car if you're is written off in the first year - some GAP insurance policies will offer a delay to accommodate this.

There are various types of GAP insurance - e.g. back to invoice, replacement car, etc, etc. So you need to determine which type is best for you.

Don't buy the dealer's GAP insurance as third party companies offer better value and some offer longer periods (especially if your finance is over a period of more than 3 years). ALA, totallossgap, etc offer competitive policies.

[srt]

You need the normal compulsory insurance. Gap is completely different and is there to cover the shortfall between finance owing in the event you have a total write off and the depreciated value.

Normal insurance companies pay full value for the 1st year but you could lose out in any subsequent years. There is also a limited time after you buy a new car when you are able to take out Gap (usually a month).

Shop around and go fir a reputable insurer,  not just cheapest 

[FROSTYBALLS]

12 minutes ago, srt said:

Normal insurance companies pay full value for the 1st year

Re this clause in policies, often nowadays there is a requirement for the policyholder to be the first registered owner - which disallows purchasers of pre-registered vehicles from this facility.

Also insurance payouts are often not the full value, but somewhere around market value, as insurers won't pay the profit element of retail sales.

[Cyker]

Mine says they'll replace the car like-for-like or as close as possible if it's written off in the first year! 

IMHO GAP was a no brainer on a new car, as it's relatively inexpensive compared to how much you're paying for the car anyway, and helps blunt the depreciation should the worst happen, but right now with the cost of 2nd hand cars going crazy it's not as necessary as it used to be as the current market value for a car is sometimes higher than it was originally sold for!

 

[srt]

36 minutes ago, Cyker said:

Mine says they'll replace the car like-for-like or as close as possible if it's written off in the first year! 

IMHO GAP was a no brainer on a new car, as it's relatively inexpensive compared to how much you're paying for the car anyway, and helps blunt the depreciation should the worst happen, but right now with the cost of 2nd hand cars going crazy it's not as necessary as it used to be as the current market value for a car is sometimes higher than it was originally sold for!

 

I opted for replacement Gap in consideration of the way new have also hiked over last few months i.e. not just the used cars. If anything happens I'd like to get same as i lost and not have to fork out several thousand pounds more simply due to inflation. The used market seems to have dropped a bit from where it was a few months ago

[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. 

[ParisYaris]

Thank you everyone for the info.  Been so busy, did not get round to replying.  Once I get confirmation from my dealer I will buy the GAP insurance. I will post update of my delivery in the Yaris thread.

[Leo63]

Yes you need to buy your normal insurance policy every year and it must be fully comprehensive insurance not 3rd party insurance.

But I wouldn't buy GAP insurance policy from any dealership and buy from elsewhere ie ALA GAP insurance / Click for Gap Insurance you can save over hundred pounds cutting the middle man out ie the dealership.

I paid just under £200 for my CHR GR SPORT  my dealership wanted just over £450

 

[Derek.w]

In 2014 I was the second registered owner car was 6 month old and I opted for the GAP insurance on top of my normal insurance.