GAP insurance advice

[mitch84]

Hi

I have never purchased this but I'm seriously thinking about doing it this time, although not from the dealership Im purchasing car from. I just need some advice on wether its a wise decision to do. I understand it can be a money maker for salesmen and some say its not worth it,  but I guess unless something in the future does or doesn't happen everyone will have different opinions on it.

Anyway the reason I think I might do it this time is that the car I'm purchasing is the most amount of money I have ever put down on a car.

I normally only spend around 8k-12k if I buy almost new and I keep the car as long as possible, my current focus mk2.5 has lasted me over 9 years but I didn't bother with gap insurance at the time as I got a good deal on the car, so didn't worry to much about GAP.

My next car is slightly more expensive, 17k, so I'm thinking that gap might be wise.

I will be paying the sum in full.

I have looked on ALA insurance for GAP which I have seen mentioned a fair bit on car forums, checking it's about £290 for 3 years.

So waste of money or worth it for peace of mind?

Really just need some responses from you guys that have purchased GAP and found it useful down the line.

 

Thank's

[Matthew McGuinness]

Ive got GAP insurance on mine that i got in September. I have my car on a 4 year PCP so it was to give me full piece of mind. I used Motor easy for my GAP insurance where i have paid £195 for 4 years worth of cover.

[mitch84]

4 minutes ago, Matthew McGuinness said:

Ive got GAP insurance on mine that i got in September. I have my car on a 4 year PCP so it was to give me full piece of mind. I used Motor easy for my GAP insurance where i have paid £195 for 4 years worth of cover.

So Is it better to get GAP for people on the finance plans or it makes no difference on finance or people that have paid in full?

I will check out motor easy, thanks.

[Matthew McGuinness]

3 minutes ago, mitch84 said:

So Is it better to get GAP for people on the finance plans or it makes no difference on finance or people that have paid in full?

I will check out motor easy, thanks.

I don't think it should make a difference. It just means that on a new/ nearly new car, if you end up having a total loss claim, then you will be able to get back the amount that you paid for your car. This is because normally insurance companies will only pay out the current value of the car, and your GAP insurance will pay the rest.

[mitch84]

2 minutes ago, Matthew McGuinness said:

I don't think it should make a difference. It just means that on a new/ nearly new car, if you end up having a total loss claim, then you will be able to get back the amount that you paid for your car. This is because normally insurance companies will only pay out the current value of the car, and your GAP insurance will pay the rest.

Great, ALA and Motor Easy both have good reviews will just have to decide which one, ala quoted me £293 for 3 years.

[AndyDC]

If your car is written off, would you go and buy another brand new car? Even if it's after 2 years?  If you have an aversion to a used car then it makes sense (to me) on a car where you are paying outright. If you are OK with buying a second-hand car of the same age as the one just written off, then gap cover doesn't seem logical to me (the gap insurance seems to be a premium to insurance something that will not be a loss to you and will be very unlikely to happen at all).

If it was on finance then that's a different matter as you can end up with a deficit between the pay out of the normal insurance and the amount outstanding on finance, which means the gap insurance ensures you don't end up having to dip into savings etc.

[mitch84]

13 hours ago, AndyDC said:

If your car is written off, would you go and buy another brand new car? Even if it's after 2 years?  If you have an aversion to a used car then it makes sense (to me) on a car where you are paying outright. If you are OK with buying a second-hand car of the same age as the one just written off, then gap cover doesn't seem logical to me (the gap insurance seems to be a premium to insurance something that will not be a loss to you and will be very unlikely to happen at all).

If it was on finance then that's a different matter as you can end up with a deficit between the pay out of the normal insurance and the amount outstanding on finance, which means the gap insurance ensures you don't end up having to dip into savings etc.

I see your point, but you can look at it another way, would I want to buy a used car of the same age with lets say 30'000 miles on the clock, I wouldn't know how the previous driver has driven the car or treated it.

I'm getting used by the way, but it's only done 600miles and has pretty much every fitted option available, Im shelling out a lot of money, the most for me ever, which is why I think GAP might give me some peace of mind. 

Thanks everyone for the feedback.

[mozz]

 

I'm not really clued up on this, but am i right in thinking that if you have this type of insurance and your car is 'written off' at any time during covered period, 'gap' insurance will make up the difference to the original purchase value? If that's the case, i'd say it's a good plan, if your finances allow. 

 

[Nick Y]

42 minutes ago, mozz said:

 

I'm not really clued up on this, but am i right in thinking that if you have this type of insurance and your car is 'written off' at any time during covered period, 'gap' insurance will make up the difference to the original purchase value? If that's the case, i'd say it's a good plan, if your finances allow. 

 

That is correct. 
Say you pay £12k for a nearly new or new car you will lose a chunk of that value the moment you drive it away. If your car gets written off by an insurer after an accident (say after 12 months), the insurance will only pay out the average market value for the car at the time of the accident. This means that you could lose several £k on a car that you haven't owned long. 
GAP insurance will cover the rest of the balance so you will be able to recover the total amount you paid for the car 12 months before (£12k or however much you paid for it). 

[mitch84]

Update

I purchased a 3 year plan, I hope I will never require the use of it, more for peace of mind.

I was going to go elsewhere for GAP but after checking ALA which I hear mentioned a lot, they were only £5 cheaper than FORDS GAP plan.

It cost me £297 for 3 years, I guess some other places could have been cheaper but least it's in place the moment I leave the forecourt.

[mozz]

Wise decision, given the purchase price on your car, i've recently spent megabucks on a new three piece suite and forked out £250 insurance for 5 years cover, covering any type of damage.As said, it's piece of mind. Let's hope neither of us need to use it.

[TomsFocus]

7 minutes ago, mozz said:

Wise decision, given the purchase price on your car, i've recently spent megabucks on a new three piece suite and forked out £250 insurance for 5 years cover, covering any type of damage.As said, it's piece of mind. Let's hope neither of us need to use it.

I can't read the phrase 'three piece suite' without hearing Hyacinth Bucket say it...  

Presumably yours is also an exact replica of the one at Sandringham House if it needs that much insurance!  

[mozz]

15 minutes ago, TomsFocus said:

I can't read the phrase 'three piece suite' without hearing Hyacinth Bucket say it...  

Presumably yours is also an exact replica of the one at Sandringham House if it needs that much insurance!  

 

What i should have said was 3 seater and 2 seater electric reclining settees. Personally I was happy with the 25 year old 3 piece that has seen a lot of action, but was cajolled into parting with my hard earned..

 

[TomsFocus]

8 minutes ago, mozz said:

 

What i should have said was 3 seater and 2 seater electric reclining settees. Personally I was happy with the 25 year old 3 piece that has seen a lot of action, but was cajolled into parting with my hard earned..

 

Crikey, you definitely got your moneys worth out of the old suite!   

[Eric Bloodaxe]

Couple of points:

Most, if not all, comprehensive insurance policies give new for old cover for 12 months these days, some even 24, so check that out before paying for GAP where you might already have cover.

GAP policies vary - some cover the gap between the current value of your car and the price when new, some cover the gap to the current new price, which (the way Ford prices have gone lately) could be a fair bit more.

 

[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.

[mitch84]

19 hours ago, Eric Bloodaxe said:

Couple of points:

Most, if not all, comprehensive insurance policies give new for old cover for 12 months these days, some even 24, so check that out before paying for GAP where you might already have cover.

GAP policies vary - some cover the gap between the current value of your car and the price when new, some cover the gap to the current new price, which (the way Ford prices have gone lately) could be a fair bit more.

 

I see this mentioned a bit, on Churchill it says:

"If your car is less than one year old and you are the first and only registered owner in order to get you back on the road as quickly as possible with the minimum amount of hassle, we will attempt to offer you a permanent replacement vehicle of the same make and model. In cases where this is not possible, your claim will be settled based on the market value of your vehicle at the date of loss."

As I got slightly used from Ford I guess I made a good choice with GAP as I wouldn't be there first registered keeper 

 

[Eric Bloodaxe]

My policy offers new for old up to two years, but again only if you are the first registered owner, so GAP would be the only choice with them also, if not buying from new.

Interesting that the Churchill wording says "permanent replacement vehicle of the same make and model" not "new for old".

[Gallego1968]

I have never done it before but then again never spent so much money on a car before. This time i took out 4 year gap insurance as it's peace of mind.

[Stoney871]

Don't take dealership cover as it's far cheaper elsewhere.
Ford were looking at £300 for 3 years, I just got the same from an independent for £140.
Ford like selling it as it's basically pure profit for them.

Sent from my SM-G965F using Tapatalk

[DanOstin]

I think investing your money into a GAP insurance would be a wise decision, no matter how much does the car cost, because you never know what might happen one day. Before purchasing a GAP insurance, I would advise you to have a good look around and choose what it's best for you. My personal choice would be Money Expert. It has proven it's quality and consistency in time, it has great offers, very good overall reviews on the internet. I've made some deals over the past with these guys and they managed to always be spot on with everything.

[lillianna3]

On 12/4/2019 at 12:49 PM, mitch84 said:

Great, ALA and Motor Easy both have good reviews will just have to decide which one, ala quoted me £293 for 3 years.

I normally only spend around 8k-12k if I buy almost new and I keep the car as long as possible, my current focus mk2.5 has lasted me over 9 years but I didn't bother with gap insurance at the time as I got a good deal on the car, so didn't worry to much about GAP.

[lillianna3]

On 10/9/2020 at 8:06 PM, lillianna3 said:

I normally only spend around 8k-12k if I buy almost new and I keep the car as long as possible, my current focus mk2.5 has lasted me over 9 years but I didn't bother with gap insurance at the time as I got a good deal on the car, so didn't worry to much about GAP.

Great, ALA and Motor Easy both have good reviews will just have to decide which one, ala quoted me £293 for 3 years.  Speed Test