General Gap Insurance

[SiliconS]

When we bought an Audi last year with PCP finance we took gap insurance but when we bought the 500c we paid cash and didn't bother. If you have finance on the car and it gets written off then you're left with an insurance payout that almost certainly won't settle the outstanding finance, which is why gap insurance is so reassuring. If you pay cash for your car then after a write-off you negotiate your insurance settlement and just go buy an equivalent used car with the payout and you're no worse off. Given that we're not accident-prone, gap insurance seemed like an unnecessary cost to us. But whatever you've done, I hope you enjoy your new car!

 

[306maxi]

When we bought an Audi last year with PCP finance we took gap insurance but when we bought the 500c we paid cash and didn't bother. If you have finance on the car and it gets written off then you're left with an insurance payout that almost certainly won't settle the outstanding finance, which is why gap insurance is so reassuring. If you pay cash for your car then after a write-off you negotiate your insurance settlement and just go buy an equivalent used car with the payout and you're no worse off. Given that we're not accident-prone, gap insurance seemed like an unnecessary cost to us. But whatever you've done, I hope you enjoy your new car!

Not really. I bought a new car and if it gets written off I don't want an equivalent car, I want a NEW car. There's probably only a .01% chance of claiming on my gap insurance but it's worth the peace of mind to know that if the worst happens I'll get a new car.

 

[jrkitching]

There's probably only a .01% chance of claiming on my gap insurance...

If true, and if my understanding of the laws of probability still holds good, that would value your overall expectation of a return from your GAP premium at a shade under £1.21 (and that's ignoring the settlement from the insurer).

This looks to be a very profitable product for the insurance industry and it's no wonder salesfolk push it so hard.

...but it's worth the peace of mind to know that if the worst happens I'll get a new car.

Exactly. Your overall expectation of a return on your £100+ GAP investment may only be £1.21, but the peace of mind that goes with it is priceless

 

[306maxi]

If true, and if my understanding of the laws of probability still holds good, that would value your overall expectation of a return from your GAP premium at a shade under £1.21 (and that's ignoring the settlement from the insurer).

This looks to be a very profitable product for the insurance industry and it's no wonder salesfolk push it so hard.



Exactly. Your overall expectation of a return on your £100+ GAP investment may only be £1.21, but the peace of mind that goes with it is priceless

Yeah, I don't know what the average rate at which cars get written off is, but I think GAP must be a VERY very profitable product. £220 for peace of mine though

 

[jrkitching]

Yeah, I don't know what the average rate at which cars get written off is, but I think GAP must be a VERY very profitable product. £220 for peace of mine though

I wonder what the actual number of GAP claims is each year, and what is the average payout?

Does anyone have any first-hand knowledge of having successfully claimed against a GAP policy?

 

[306maxi]

I wonder what the actual number of GAP claims is each year, and what is the average payout?

Does anyone have any first-hand knowledge of having successfully claimed against a GAP policy?

All the people on here who've had their 500's written off haven't had gap insurance. Sods law!

 

[jrkitching]

It's worth reading the small print to find out what's NOT covered.

For example (this is from Surf & Protect), they won't pay out "In respect of any claim whatsoever in the event that the driver of the vehicle at the time of the incident giving rise to a claim hereunder was driving illegally".

So if the driver is successfully prosecuted by the police in connection with the accident (a careless driving charge would not be unusual following a significant accident), then it seems the policy might not pay out.

 

[306maxi]

It's worth reading the small print to find out what's NOT covered.

For example (this is from Surf & Protect), they won't pay out "In respect of any claim whatsoever in the event that the driver of the vehicle at the time of the incident giving rise to a claim hereunder was driving illegally".

So if the driver is successfully prosecuted by the police in connection with the accident (a careless driving charge would not be unusual following a significant accident), then it seems the policy might not pay out.

Ooh nice But then again I can understand that. If I really wanted to, right now I could go out for a drive and accidently drive off the road into a field and write the car off. I think the law makes a distinction between slightly careless driving and wreckless driving. In reality someone is always at fault in each accident and could in theory be guilty of careless driving.

 

[arorat]

Not really. I bought a new car and if it gets written off I don't want an equivalent car, I want a NEW car. There's probably only a .01% chance of claiming on my gap insurance but it's worth the peace of mind to know that if the worst happens I'll get a new car.

I agree with maxi on this, in the scale of things paying another £200 odd on top of a new car gives a peace of mind that you can get a new car in the next 4 years if making a claim.

btw: I got my GAP from surfandprotect for 4 years yesterday, they did a price match as well. If you need a great contact in there PM me, but do compare all policies in the market and go with best for you.

 

[jrkitching]

...and wreckless driving....

Having spent my student days driving wrecks, it's something I now make every effort to avoid.

 

[306maxi]

Having spent my student days driving wrecks, it's something I now make every effort to avoid.

*facepalm*

Reckless

 

[RobinPJ]

Having spent my student days driving wrecks, it's something I now make every effort to avoid.

Surely you mean it is something you make every effort to do?

 

[jrkitching]

Surely you mean it is something you make every effort to do?

:doh::doh::doh:

 

[FloJo]

I need to sort out my gap insurance this evening, unfortunately the 2 months I have remaining on my existing policy are with Admiral so I don't get new for old covered. I'm wondering whether it would be better to just start a new policy from scratch starting in sept (the dealer has done the 7 day drive away thing) and then defer a 3 year gap policy for 1 year or just buy the gap policy now and carry on with my insurance year being in November. Decisions decisions!

 

[306maxi]

I think you're getting slightly confused between car insurance and gap insurance. They're two very different things.

 

[FloJo]

I think you're getting slightly confused between car insurance and gap insurance. They're two very different things.

I'm aware of the difference
I was thinking of starting a new insurance policy that included new for old cover

 

[FloJo]

I remembered the question I have: I'm using the Fiat i-deal finance thing - will that make any difference if I get replacement gap insurance?

 

[306maxi]

You've got 3 months from getting the car to get gap insurance so don't be too worried about getting it done now

 

[FloJo]

You've got 3 months from getting the car to get gap insurance so don't be too worried about getting it done now

But what happens if, for example I have an accident on Saturday and the car is a write off and I haven't bought the gap insurance?

 

[306maxi]

But what happens if, for example I have an accident on Saturday and the car is a write off and I haven't bought the gap insurance?

Most insurance policies offer new for old for the first year anyway?