GAP Insurance.

[johng]

Hi Guys.

I have just changed my car and purchased a rather nice Toyota Celica VVTLi T-Sport (what pre midlife - midlife crisis?? )

Anyway, I have put £3000 down and £5000 on finance. the finance company want £160 to cover the GAP finance. Is it really worth it?

Anyone have any experience or views on this. Is it worthwhile or just a watse of money, money that could be used for far more fun things?

Thanks in advance.

John.

p.s.
Big thanks to MedwayJon on his advice to buy this car in the 1st place.

 

[forefortheday]

For that price yes.

Check the T&C's but basically it will cover you if have a write-off as the insurance company will ofer you less than what you actually owe.

 

[Smiffy]

If they offer RTI cover, I always think that is a better option than GAP.
GAP will only pay the difference between what your insurance company pay out, and what you have left on finance.
RTI means "return to invoice" and will pay out the difference between what your insurance company pay out and the actual invoice price that you paid for the car.
That would give you some left over depending on how long you had owned the car before the unfortunate accident.
Hope that makes sense?
Any more questions, give me a shout
Rob

 

[SimonS]

Do a search on Google. I've used click4gap before and they are only £94 for RTI.

 

[chrisd]

So let me get this clear if I can Smiffy.

We bought a new car for the good lady a few weeks back and they asked me to take GAP insurance which I declined. We traded her Cooper S and paid the balance by dedit card. So, if the gap only pays the difference between the value if stolen/written off and any outstanding finance, then, as we had no finance then we couldn't have benfitted from the GAP?



Chris

 

[pokerjoke]

I had gap insurance 6 years ago when i purchased my bmw it cost me 300 quid for 3 years.I purchased car for £10,200,after 2yrs 5 mths i wrote the car off on some ice.The gap insurance paid out £8,200 as the insurance company priced the car based on parkers guide the gap insurance company paid out on the glasses guide price.I lost £2,200 but i was very happy i added gap protection.

 

[Ken_A]

Got cought out when I was asked to get GAP when I was 18, never took it. 6 months later I wrote the car off and was cought for £3k.

Lesson learnt, I always get GAP and advise all others to do it. And as sir Smiffy said - get RTI.

 

[Smiffy]

So let me get this clear if I can Smiffy.

We bought a new car for the good lady a few weeks back and they asked me to take GAP insurance which I declined. We traded her Cooper S and paid the balance by dedit card. So, if the gap only pays the difference between the value if stolen/written off and any outstanding finance, then, as we had no finance then we couldn't have benfitted from the GAP?



Chris

GAP insurance should only be offered to those having finance.
For cash purchases, RTI is what you should have been offered.

 

[RGDave]

Good choice johng.....I approve.

I'm not very useful on insurance "add-ons" because I never get them. But I do follow the perceived "value" of certain financial products.

What I would say though is on a new (financed) item, particularly a car, Yes.

On a 2nd hand item with a decent down payment, I'd be tempted to not bother.

If you've financed £5,000 on an £8,000 car....at what point is an insurance payout not going to cover your finance liability? I'd say never, but in the strange world of car values and insurance companies, I'd never say never.

My evaluation (like I said, not thinking about cars) would be £1,000 down on a £10,000 item, £160 is probably a very good deal. £160 to "save" £3,000 (as an example case) could be an intelligent punt.

 

[johng]

I'd say never, but in the strange world of car values and insurance companies, I'd never say never.

You just did!


Thanks for the feedback guys.

I have been looking online and it does seem I can get the same cover for about £80 less than the finance company are quoting. Time for a bit of haggling me thinks!

 

[chrisd]

GAP insurance should only be offered to those having finance.
For cash purchases, RTI is what you should have been offered.

That's what I understood from your earlier posting Smiffy and thanks for confirming what I thought. So, the salesman should have ascertained how we were planning to pay for the car first and then offered the proper product!

My position now is , if the car is stolen or written off then insurers will pay out according to its current value which is all I would have got anyway


Chris