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Old 26th Apr 2015, 15:56   #1
SlyReaper
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Is GAP insurance worth it?

So, I'm buying a new car, agreed price of £34,500. The dealer is offering something called GAP insurance for £465, which will last 4 years. If the car is written off in that 4 year span, then they will top up my insurance payout such that the total is what I originally paid.

Good idea? I'm leaning towards getting it, but since I didn't have to decide immediately, I said I'd take advice.

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Last edited by SlyReaper; 26th Apr 2015 at 15:59.
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Old 26th Apr 2015, 15:57   #2
[TW]Fox
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How about we start this thread again but use actual pounds rather than 'spacebucks' because it's worthyness depends on a few things chief of which being the actual price paid for the car, the other being what the car is and what its likely depreciation might be and how its funded.

FWIW, it's NEVER worth buying from the dealer as the same product can be had online for about 100 quid.

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Old 26th Apr 2015, 15:59   #3
SlyReaper
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I could call them squidaroonies instead? OK, I'll edit my post.

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Old 26th Apr 2015, 16:01   #4
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It's probably worth buying at that value, but buy it for about £100 from somewhere like http://www.click4gap.co.uk instead.

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Old 26th Apr 2015, 16:06   #5
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I just checked click4gap. Their quotes aren't great. £393 for 3 years cover and a £15k claim limit (which is what I expect my depreciation to be over that period). Given that, £465 from the dealer for a 4 year period seems more attractive.

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Old 26th Apr 2015, 16:08   #6
thewanted
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Make sure you understand the difference between "Return to Invoice" and "Vehicle Replacement" GAP policies. This is all clearly explained on www.ala.co.uk (use "GAP12" for a 10% discount).
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Old 26th Apr 2015, 16:11   #7
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It was just an example off the top of my head. The point is there are many firms who will offer this.

For example:

http://www.ala.co.uk

Back to Invoice Plus

4 years, £15k cover, £225 - half the dealer price.

The dealer price is a con designed to make them tasty margin.

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Old 26th Apr 2015, 16:15   #8
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Mine is with ala, back to invoice plus.

I'll be going with ala again when I order the s3 (or possibly s4)


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Old 26th Apr 2015, 16:16   #9
[TW]Fox
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Quote:
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I'll be going with ala again when I order the s3 (or possibly s4)
Is that because you found it so useful on the A4?

This is of course the issue with this product - the prices are VERY reasonable but there is a reason why - almost nobody ever claims. The chances of writing off a vehicle with a significant value are almost nil, you need to be involved in a very serious accident or have it outright stolen for it to be more cost effective to write the car off.

This is why it's cheap, the risk to the insurer is very low. The policy priceayout ratio tells you what you need to know about the chance of it ever being used.

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Old 26th Apr 2015, 16:24   #10
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Thanks for pointing me towards ALA, they're giving much better quotes. I wonder if my dealer will match that quote? Given it's less than half the price, I suspect not, and I'll get the ALA insurance.

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Old 26th Apr 2015, 16:29   #11
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Quote:
Originally Posted by [TW]Fox View Post
Is that because you found it so useful on the A4?

This is of course the issue with this product - the prices are VERY reasonable but there is a reason why - almost nobody ever claims. The chances of writing off a vehicle with a significant value are almost nil, you need to be involved in a very serious accident or have it outright stolen for it to be more cost effective to write the car off.

This is why it's cheap, the risk to the insurer is very low. The policy priceayout ratio tells you what you need to know about the chance of it ever being used.
Quite. But it would be Sod's law that if I didn't have cover I'd need it. For the cost, I'd rather throw away ALA money than dealer prices!


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Old 26th Apr 2015, 16:34   #12
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Quite. But it would be Sod's law that if I didn't have cover I'd need it
Nobody 'needs' it, it's strictly a bonus. Insurance will pay the replacement value of the car (after 2 weeks of arguing obviously) and you can buy a 2 year old S3 for the payout in 2 years time. It's not as if not having it leaves you destitute in the event of a crash.

The only GAP thats essential is the original gap - the one that pays the difference between what your nearly new Astra is worth (£500) and what you still owe on the finance (£billions) because not having it means you are screwed in the event of a writeoff

But of course I'm now duty bound to argue its pointless, I figured I might as well buy it for the F10, then I forgot too

But its basically just gambling - you pay £250 and hope your car gets written off 2 years down the line and you get a bononza payout far in excess of its value.

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Old 26th Apr 2015, 16:45   #13
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I'm actually going to be paying for mine outright. No loans. Is it still worth getting? I mean, if my 2 year old S3 got trashed because some idiot drove into the side of me, I'd rather replace it with a brand new one than another 2 year old S3 where I have no particularly clear idea of the car's history.

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Old 26th Apr 2015, 16:47   #14
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Originally Posted by SlyReaper View Post
I'm actually going to be paying for mine outright. No loans. Is it still worth getting? I mean, if my 2 year old S3 got trashed because some idiot drove into the side of me, I'd rather replace it with a brand new one than another 2 year old S3 where I have no particularly clear idea of the car's history.
The overwhelmingly likely outcome of some idiot driving into the side of your S3 is that you spend 3 weeks without your S3 in somebody elses S3 whilst your S3 is fixed at the cost of his insurer.

There is a very, very small chance that your car will be written off whilst you own it. Only if this very small chance comes to fruition will you benefit from GAP cover.

Only you know if a slim chance of a payout is worth £225.

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Old 26th Apr 2015, 17:20   #15
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I am also debating whether to get gap or not on my new Fiesta ST. Will only cost £85 for 4 years return to invoice cover (3 years but you can defer till after year 1 as my insurance will replace with a brand new car in the first year so 4 years effectively).

For £85 it isnt a lot of money but at the same time, it is just betting on your car being written off. I would probably be better off just taking the £85 to a casino.
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Old 26th Apr 2015, 18:03   #16
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Quote:
Originally Posted by [TW]Fox View Post
The overwhelmingly likely outcome of some idiot driving into the side of your S3 is that you spend 3 weeks without your S3 in somebody elses S3 whilst your S3 is fixed at the cost of his insurer.

There is a very, very small chance that your car will be written off whilst you own it. Only if this very small chance comes to fruition will you benefit from GAP cover.

Only you know if a slim chance of a payout is worth £225.
Or stolen.
I know a few people who have had cars nicked (keys taken from the house) and they have obviously benefited from GAP. There is quite a few reports of Golf R's being nicked so S3's would also be favourable as well.
Wife has her Fiesta ST on lease and for that its a must have as you are liable for the payments you havent yet paid as well.
Thinking of getting it for my new M135i, gapinsurance123.co.uk were cheapest on the Fiesta and seem the cheapest on the M135i (return to invoice). I'd go for 3yr / £10k or 4yr / £15k.

Cheers, Stu
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Old 26th Apr 2015, 18:11   #17
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Stolen = written off.

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Old 26th Apr 2015, 18:26   #18
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www.ala.co.uk are very good and much cheaper than dealer GAP polices...

It's not what you know, it's what you can prove...
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Old 26th Apr 2015, 18:29   #19
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Quote:
Originally Posted by Chris344 View Post
www.ala.co.uk are very good and much cheaper than dealer GAP polices...
I hope the OP checks them out now that they've been mentioned 4 times in this thread
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Old 26th Apr 2015, 18:42   #20
Chris344
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Well when I bought my car, the dealer wanted £500 for GAP, now they can throw this in for free depending on how much room they have.

ALA cost me £180 (and they are on Topcashback) for a better policy and they have great reviews in the industry.

It's not what you know, it's what you can prove...
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Old 26th Apr 2015, 18:48   #21
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Quote:
Originally Posted by [TW]Fox View Post
How about we start this thread again but use actual pounds rather than 'spacebucks' because it's worthyness depends on a few things chief of which being the actual price paid for the car, the other being what the car is and what its likely depreciation might be and how its funded.

FWIW, it's NEVER worth buying from the dealer as the same product can be had online for about 100 quid.
Allow me to translate.

IMO OP, it depends on a number of factors such as car value and depreciation, but typically speaking if you do decide to get GAP insurance, then have a look online first as it's usually a lot cheaper than from the car dealership as they add a big mark up to it.

You do have a way about you don't you.... Lol

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Old 26th Apr 2015, 20:34   #22
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When I got my Hyundai i10 last year, I went for the gap insurance purely for peace of mind.
Then again, I'm paying £2.50 a month for the privilege, obviously more expensive car would cost more.
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Old 26th Apr 2015, 20:42   #23
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Originally Posted by Kuros View Post
When I got my Hyundai i10 last year, I went for the gap insurance purely for peace of mind.
Then again, I'm paying £2.50 a month for the privilege, obviously more expensive car would cost more.
Is that £2.50 inclusive of the finance payments


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Old 26th Apr 2015, 22:36   #24
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Slightly OT, but I've been wondering this for a while.

If you have a GAP policy and have an accident which is found to be the fault of a third party, can the GAP insurer claim their costs back from the third party?

One of the advantages of the ALA policy is you can transfer the cover to another vehicle if you decide to change cars part way through the policy. Dealer GAP policies I've had didn't allow this.
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Old 26th Apr 2015, 22:37   #25
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No.

The law doesn't allow for betterment which is exactly what that would be.

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