GAP insurance | Motoring discussion | Back Room Forum

Fri 20 May 2005 18:23

GAP insurance - bert-j

About to buy a new car. The salesman was desperate to sell me GAP insurance (at about £400). This apparently covers the difference betweeen the initial cost of the car during the first three years (if a total wreck) and what my insurance company would pay out. The thing that bothers me is that, according to the salesman, even if the car is a total write off during the first year, my insurance company would not replace the car but only the value of the car less VAT. My insurance policy states quite clearly that the car would be replaced if written off during the first year. Has anyone experience of this situation and/or is it yet another dealer try on?
He also tried to sell me a special paint treatment at £295 which I refused!

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Fri 20 May 2005 18:30

GAP insurance - ihpj

Read your insurance small print, or better yet, fire off a letter to them and invite them to clarify their position in writing. But yes, msot insurers will repalce for new if your new car gets written off (God forbid). Also clarify what they deem to be 'new' (no previous keeper?) and then make your mind up. I've only ever bought one (1) brand spanking new car and didn't opt for the Gap Insurance product as I was happy at the coverage provided by my Insurance Company. ANother consideration might be for you to check voer your own driving record...do you write off cars regularly? Do have nil NCB? Do you live in a 'high risk' area?

Also, remember if the car gets totalled due to someone else's fault then I'd wager it makes things easier for you to get it replaced 'with new' ...

I hope maybe RF or blue_haddock might be able to shed more light on it?

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Im not plain stupid, just a special kind of stoopid.

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Fri 20 May 2005 18:33

GAP insurance - blue_haddock

Right he will give you the hard sell on these as their a nice little earner for him so in answer to your question yes he is trying it on.

Many insurance companies will pay for a new car if your write it off during the first year so he is telling you porkies, it's in his interest for you to fear the worst and so take out the policy. The actual cost to the dealership is less than a hundred pounds and you can buy similar policies over the net for a lot less than £400.

The paint treatment has many names (silver seal, diamond bright etc) and it is meant to mean you don't need to wash or polish it as much as you would an untreated car. Usually it includes and interior protection coating similar to scotchguard. Again you can buy the product and install it for yourself for about 50 or 60 pounds.

Go back to the salesman and say you'll have them but you will only pay £100 each for them.

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Fri 20 May 2005 22:59

GAP insurance - 007

One word of caution.....if your new car is *pre-reg* the insurance people will probably not allow you the benefit of replacement in the event of write-off during first year.

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Fri 20 May 2005 23:09

GAP insurance - bert-j

I've now contacted my insurer. They assured me that if my new car was involved in an accident, and cost more than 60% of it's original cost to repair, then it would be replaced with an identical car. Quote ".... it won't cost you a penny if the car is written off during it's first year"
Whether GAP insurance is worth it for subsequent years is another matter. I certainly won't bother.

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Sat 21 May 2005 00:58

GAP insurance - David Horn

Worth it on a second hand car. I bought an S-reg Xsara two years ago and the GAP cover I bought separately would have refunded me the difference between what my insurer paid out and the purchase price of the car if I wrote it off within two years.

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Mon 23 May 2005 12:09

GAP insurance - PR {P}

I recently bought a nearly new ex demo car, and took out GAP insurance myself. The dealer wanted £300 I got it for £195. Shop around if you do want it. The company I got it from allows 30 days from purchase of the vehicle

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Mon 23 May 2005 22:40

GAP insurance - jlo

Hi,

I am just about to Opt out of our company car scheme and our fleet dept insists that we buy a car on PCP with Maintance, Tyres and GAP insurance although this Gap policy covers the short fall of what the insurace will pay out and what I would owe the finance company so these policies are much less expensive.

When my Wife bought a pre reg car from a Car Supermarket they also gave the heavy sell for GAP and theirs covered the difference in insurance pay out to invoice of car price so be aware there are 2 types of GAP.

Cheers

Jlo

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Mon 23 May 2005 22:59

GAP insurance - martint123