Gap Insurance

[herbie911]

I do 10000miles a year and planning to keep the car for 5. Dealer quote me £395 for 3 years. I had signed the dotted line.
Sort of regret about my decision.  :sick:I had never written off my car since I pass my test. Is it worth getting Gap Insurance???
Should I had spend that money on a service agreement or extended warranty instead?

[FamilyDub]

Gap insurance is like normal insurance... it's boring and overpriced until the minute you actually need it.

On a new car I would always get Gap, but that's my opinion. 

[keelaw]

Given its a new car and given how much its going to depreciate, 133 quid a year is pretty cheap.

I'm getting this and the servicing pack too.

What deal you getting on the extended warranty?

[matchboy]

I have GAP insurance on my mk 5 (as i bought it from new) and i have also gone for it for my on order mk 6.  its defo worth it, particually if you right the car off (which hopefully no one will do!!)  Threaten to go elsewhere for your GAP insurance - that's what I did and i ended up with the quoted £500 cover being given for free (they would have taken £500 off the car price and added the £500 back) - remember, the dealers earn massive commission on this type of extra so you can defo get it off them cheaper as they will just take it off the price of the car because they make nothing on the car but loads on the service plan, insurance, finance etc!

[keelaw]

Strange, I had to actively ask for gap insurance. Also I had to ask about the autoglym protection, though the dealer guy said it wasn't worth it!

Prob because he was on the fleet side and doesn't get these bonuses.

[herbie911]

Thanks guys! Feel a bit better. I will see if I could haggle the service agreement with the Gap insurance for £500. It was listed on the car configurator for £250!

[Rolfe]

OK, ignoramus here.  Could somebody explain what GAP insurance is? 

Rolfe.

[synnea]

If for example your car is written off 2 years into your ownership the insurance companies only pay out the current market value of your car.

So, say in 2007 you paid 20k for your car. Worst case scenario it is written off today and market value for your 2 year old car is now 12k. Your insurance company pays you the 12k. You are in effect 8k sort of the original amount you paid of 20k. The GAP insurance fills this 'Gap' hence the name. So your GAP insurance in this example would pay out 8k, leaving you with 20k as you had already parted with in 2007.

Now this is what I was told by my dealer and hence the reason I bought the GAP insurance. Now if this is wrong can someone please correct me?

[R32UK]

that sounds about correct Jules

I thought it was a total waste of time and money until a few of the people on here smashed their cars. The way cars have lost value over the last few years its definately worth the relatively small initial fee.

[simonpolly]

If the market value is 12,000 and the insurance company gives you 12,000 then you could replace you car like for like without gap insurance.It should be called gap bonus because if you write your car off or it gets nicked you would actually gain from the gap.