Is Guaranteed asset protection (GAP) insurance worth it?

Associate
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Looking at all the figures for getting a Focus ST I've been told that GAP insurance on the 11k Focus is worth taking, but like all insurance policies is it a good deal? it seems that the different finance companies and brokers push this quite hard so I'm guessing they make a lot of commission on the extra insurance as well?

I've always owned cars outright before so not come across this before. I assume I only need to use GAP insurance if the vehicle is a total loss before the end of the finance agreement?

If I don't take the insurance and the car is a write off for whatever reason in the future what kind of depreciation loss could I expect?
 
Associate
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I've just taken GAP Insurance for my Fiesta ST, I looked on the internet and saved myself some money on it. I've always had it and tbh if the worst happens then you will be very glad you have it.
 
Caporegime
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what type of GAP protection are they offering

will they meet the full value of the outstanding finance, or just the trade in value of the car at the time ?

If you take the latter kind of GAP protection, you wont be out of pocket at all. If the former, it really depends upon what 2nd hand focus ST prices do.

However, an 11k Focus ST has already done the bulk of its depreciation, so you should be ok. You wont find Focus STs dipping below 5k in the next 3 years.
 
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The GAP insurance both different companies are offering is that they will pay the difference between my insurance pay out and the cost of the finance agreement.

I'm making quite a few assumptions here but say the car costs 11k. With our trade in of 2k and a 1k deposit the total finance is 8k
If the car is written off next year and direct line pay out 8k for market value this would cover the finance.

So in this case what would GAP insurance pay out?

Out of interest where should I look online for comparison costs, therubble where did you look?
 
Soldato
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will they meet the full value of the outstanding finance, or just the trade in value of the car at the time ?

If you take the latter kind of GAP protection, you wont be out of pocket at all. If the former, it really depends upon what 2nd hand focus ST prices do.

I think this should be other way around...
 
Caporegime
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Looks like there's a few different types.

Back to Invoice Car Gap Insurance

This type of car GAP Insurance will pay you the difference between your motor insurer's settlement figure and your original invoice price of the vehicle. If the vehicle is financed you can use this payment to settle the outstanding financeowed, with the remaining amount put towards a replacement vehicle. This policy is suitable for vehicles owned outright or on finance.



Vehicle Replacement Car Gap Insurance

This product will cover the difference between your motor insurer's settlement figure and the cost of replacing with a brand new or equivalent age vehicle, up to the benefit limit, whether you own the vehicle outright or it is on finance.



Contract Hire Car Gap Insurance

Protects the shortfall between the outstanding balance under the Contract Hire agreement (this can be up to 100% of outstanding rentals) and the total loss settlement offered by insurers in the event of a vehicle being written off following an accident, fire or theft Available for cars and light vans on Contract Hire and Personal Contract Hire Agreements.

I'd say it was well worth having.
 
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Thanks for pointing me in the right direction people :) It seems from some extra reading the policy that the finance companies are offering (only Finance GAP insurance) is way over priced, and might not actually pay out if my insurer pays a reasonable market value.

I would like to hear from anybody who has taken Invoice GAP insurance out, I'm looking at about £190 for 3-4 years but would like to go with a company somebody has good words to say about rather than a stab in the dark on Google.
 
Soldato
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The GAP insurance both different companies are offering is that they will pay the difference between my insurance pay out and the cost of the finance agreement.

I'm making quite a few assumptions here but say the car costs 11k. With our trade in of 2k and a 1k deposit the total finance is 8k
If the car is written off next year and direct line pay out 8k for market value this would cover the finance.

So in this case what would GAP insurance pay out?


Ive had it before, and if the car is written off and you dont need to claim on the GAP they would pay you £1000. I didnt think that could be right at first bout i double checked the small print and it is
 
Soldato
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I took out GAP insurance on my vRS - mainly because the dealer offered it to me at a really good price.
My GAP insurance is "back to invoice" value and it is in place for 3 years.
The car is all paid for - a loan from my mum means we own the car outright.
However, if at any point within 3 years I was to write the car off, the GAP insurance will boost any offer the insurance company gives me back to the invoice price of the vehicle.
So examples:

Car costs me £12k
I write it off after 2.5yrs
Insurance company offer my £8k - current value
GAP insurance pays £4k
I have £12k again to spend on a new car

For the amount it cost me just seemed a nice little safety net.
 
Man of Honour
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Warning, I got screwed over by GAP insurance. I bought a new bike at a risky time financially for me and took out the top GAP cover that technically covered me for any circumstance that the insurance didn't pay out and it should have covered any remaining finance too. The bike got stolen and after a lot of arguing I didn't get a penny from either.

I'd never take it out again.
 
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Warning, I got screwed over by GAP insurance. I bought a new bike at a risky time financially for me and took out the top GAP cover that technically covered me for any circumstance that the insurance didn't pay out and it should have covered any remaining finance too. The bike got stolen and after a lot of arguing I didn't get a penny from either.

I'd never take it out again.

Possibly the reason the insurance company didnt pay out are the same reason the GAP insurance didnt pay either. What happened?

Ive used both these companies (http://www.click4gap.co.uk/ http://www.directgap.co.uk/) in the past for return to invoice GAP and they both worked out very good prices compared to what was about at the time. They are both hitatchi finance backed insurance same as many main dealers including Audi use.
 
Soldato
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Warning, I got screwed over by GAP insurance. I bought a new bike at a risky time financially for me and took out the top GAP cover that technically covered me for any circumstance that the insurance didn't pay out and it should have covered any remaining finance too. The bike got stolen and after a lot of arguing I didn't get a penny from either.

I'd never take it out again.

I'm interested too.
What reason did they give for not paying out?
Reading through the T&C of my insurance I just cannot work out a way I couldn't get paid :)
 
Man of Honour
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Possibly the reason the insurance company didnt pay out are the same reason the GAP insurance didnt pay either. What happened?
De-restricted 50cc bike and I needed a CBT to ride it, insured TPFT. I didn't have a CBT when it was stolen from outside my flat and my claim was refused on the grounds that I couldn't supply a valid licence. The GAP then refused because the insurance refused. I got the insurance refunded (£150) and the cost of the GAP insurance refunded and cut my losses, about £2K out of pocket. In hindsight I probably should have pursued them in court but this was before my internet days when lots of people offer good advice, like on here.
 
Associate
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I thought about it but to me if you had it you'd be hoping you had an accident to make it worth while as otherwise you may as well set the money on fire.

I wouldn't be getting the GAP on the off chance that I manage to binn the car myself. As my wife has proved with our old Focus it's far more likely to have some idiot drive into us, or it's stolen and written off. These are my main worry.
 
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