GAP Insurance

[mahbouni]

I'm about to go collect my new 2015 reg 320d from the dealership. The salesman wanted to sell me BMW shortfall insurance for about £600 but I found a lot of companies online that are cheaper. I've been looking at Replacement Insurance with [url=http://www.gapinsurance.co.uk]GapInsurance.co.uk | Get Quotes, Info and Buy Online.[/url]. I am hoping that if the car is written off or stolen then they will give me enough on top of my main insurers payout to buy a brand new 320d of the same spec

Is GAP insurance worth buying or is it a scam? Has anyone here actually made a claim and got the full payout they expected or did you end up getting a lot less than you expected?

[Mark_T]

It is only a scam if you buy it from the dealership ...

Make sure you get the right version though as there are two broad types, return to invoice and replacement value.

Both help, but the more expensive one will cover the replacement of the car, the cheaper one gets you back what you paid which may or may not be enough to get a new one.

You do need to decide if the risk of a total loss is worth covering, but if you do think so then the insurance is generally pretty cheap, as long as you steer clear of the dealer offers.

[RcRotaryMadness]

I took out GAP insurance when I bought a brand new car, its worth the premium for the piece of mind but don't buy it from the dealer, its way over priced, just use a well reviewed GAP insurance company and read the terms & conditions - I went for the return to invoice option as I would be happy to get back what I paid for the car should anything happen (which thankfully it didn't!)

[Grumpy]

Personally I only buy insurance for the risks that I cant 'self insure' (i.e. if the sum at risk is something i could if pushed pay myself, or live without). So stuff like the house and the (primary) car policy I'll have insurance on, because I cant afford to replace my house, and I have to have car insurance by law. Smaller risks that I could if pushed cover myself I don't bother with insurance for.

Insurers are in business to make money so they take in on average more than they pay out. By the same measure you the insured pay out on average more than you get back. If the 'risk' is something that you could live with (and i think GAP insurance falls into that net) than why pay for insurance? I'd put it into the same category as extended insurance on household goods, or on you phone, while not exactly a 'scam' they aren't usually a good investment.

[trexamanic]

Insurance can be such a lottery. Why is it that for £15 on top of the £110 annual premium, i have an agreed valuation on my 40 year old mgb roadster for £8500 yet they do not give you that option for new cars?
Warranty cover is another bug bear,
the best quote was £1150 for our range rover but its almost a worthless policy when you read into it. over 2 years i have replaced the alternator at £700 year 1 then £400 for an ignition barrel yr2 so i am in credit for whatever goes wrong year 3 (please do not let it be one of the turbos:disturbed:
looking to buy something different but i am disabled now and the ability to raise and lower the suspension is so handy to get in and out.

I buy gap insurance for everything i can like car hire, holiday etc.
I always get yearly premiums and just got a renewal for travel insurance which has over doubled due to hitting a certain age (her not me and saga)
slightly off topic but always a talking point insurance

[RcRotaryMadness]

The thing is a 320d bmw? Is quite an expensive purchase, so a gap insurance that covers 4years? For a few hundred quid is worth it imo, so if its stolen or written off you will have the full amount back (return to invoice gap policy) where you could get another new car. If it was a cheap car for 6-8k i wouldnt bother but a 320d is some serious cash

[Grumpy]

Standard insurance will give you market value for the car. So if it was a write off or stolen you could go buy another of similar condition and age and not be significantly out of pocket. I dont see the problem with replacing 'like for like'? Depreciation is something you need to accept when you buy a car, if you cant financially cope with a car's depreciation then you cant afford that car, simple as that in my book.

[mahbouni]

From my perspective I think that there is a small risk of the car getting stolen or written off. My neighbour was burgled last year and they stole his 1 week old Audi A5. No it wouldn't bankrupt me if that happened but I would be pretty upset if the main insurance payout isn't enough to repay the outstanding finance on the car. I would be in a situation where want to finance a new car but I still have outstanding finance on the old car. An extra insurance premium of £200 is nothing to me if it gives me peace of mind. I just want to be sure that it will actually do that and not trick me with the small print.

£250 for Replacement GAP insurance is even better to me if it will give me enough money to replace the car for a brand new one of identical spec. I managed to negotiate a 17.5% deposit contribution on my new car but if i have to replace the car in 6 months time I might not get the same discount. The GAP insurance link I posted above seems to say that they will pay enough to replace the car, even if it costs more than what I paid for it. I'm just worried that there is some small print that I don't understand and they won't pay out what they are advertising on their website.

[Mark_T]

[QUOTE=mahbouni;1164619]My neighbour was burgled last year and they stole his 1 week old Audi A5. No it wouldn't bankrupt me if that happened but I would be pretty upset if the main insurance payout isn't enough to repay the outstanding finance on the car.[/QUOTE]

Check the small print, that specific case is often excluded as it is a relatively common cause of a total loss. So car stolen following keys taken during burglary is not something you can necessarily rest easy about.

The other one to look for is the value of any options you may have bought, even 'replacement' GAP insurance may only replace the car model you purchased but not the options so look for that one in the T&C ...

[mahbouni]

[QUOTE=Mark_T;1164622]Check the small print, that specific case is often excluded as it is a relatively common cause of a total loss. So car stolen following keys taken during burglary is not something you can necessarily rest easy about.

The other one to look for is the value of any options you may have bought, even 'replacement' GAP insurance may only replace the car model you purchased but not the options so look for that one in the T&C ...[/QUOTE]

Referring to these T&C's [url]www.gapinsurance.co.uk/policydocs/ReplacementGapInsuranceTerms-27-02-15.pdf[/url]

[QUOTE]
Net Invoice Selling Price
Is the purchase price of the Vehicle (including factory and dealer fitted accessories) including any discount given, but
excluding any arrears or Negative Equity.

Replacement Vehicle
A vehicle of the same make, age, mileage and specification, as the insured Vehicle when You bought it. If the
model is no longer available then the price of the nearest equivalent vehicle will be used.

Total Loss
Where an Insured person has claimed under their Motor Insurance Policy and the claim has been settled, with the
Vehicle being surrendered to the Motor Insurer or otherwise, and a Total Loss payment made.
[/QUOTE]

It's the Replacement Vehicle definition that I'm not sure about. Replacement vehicle from a dealership where I bought it, or market value the minute you drive it away from the dealership? I might send them an email to get confirmation

[Peteski]

Personally I think gap insurance is a good idea on a brand new car, especially an expensive one. But what I normally try to do is get the dealer to include it in the sale price once it's clear that they have bottomed out on the discount offered. I've found that they are usually willing to throw it into the deal to secure a sale. Probably a bit late if you are collecting the car shortly though! Third party gap insurance is the next best thing as will be much cheaper than what the dealer offers. The concept is not a scam but there are likely to be some dodgy policies kicking around.

[Jez N]

I got it for my 320d estate but haggled and haggled on the price for the car and the gap insurance.

Go go at the end of a month and they will come down a lot to ensure they make a sale for that months targets.

[mahbouni]

I contacted my main insurer (MoreThan) and changed my car over to the new one. I was told that my insurance does include a replacement as new for cars that are less than 12 months old. So I haven't bothered taking out any extra GAP insurance. I should probably read the small print soon to see if it is what she said it is.

[bladeboy400]

Check the policy you buy, some include new vehicle within the 12 months anyway but they will not tell if you have a claim, but this is only if vehicle is total loss or stolen not recovered, Gap then is ok for the years after that. you may not need it in the first year anyway KGM do this policy.