[williach]

Do I need to take it out if I have normal fully comp insurance anyhow? Seems like a bit of a con paying insurance twice...?

 

[iamdabe]

Well it depends how you bought your Juke, if you took a trailer load of cash into the dealership then no, there's no need for GAP insurance.

However if you've financed the vehicle you might want the peace of mind of GAP insurance. If your Juke is stolen/written off your insurance will only pay up to the market value for the car at the time of the incident (i.e. what it's worth). This could leave you in a position where you owe more money than the cars worth (negative equity).

Two of my friends have been in this situation, one with his X3 when it was stolen and burnt out.

The worst thing is to think you're covered, then something happens and you find you're not.

GAP insurance is exactly what it says, they will make up the difference between what the insurance pay-out and the out standing finance. Obviously every GAP insurer will have their own T&C's so its wise to read the fine print.

Hope that helps.
Edited by: iamdabe

 

[hazy]

i got mine free when i bought car & also supa guard included

peter

 

[ginnym]

Ask your own insurance what offers they give. I discovered after I'd bought mine and agreed to the GAP insurance that my standard Direct Line policy covers me for a new car in the first 12 months. It's not quite the same as the GAP insurance but I might have thought twice if I'd known about the Direct Line terms.

 

[feefeeglasgow]

i would certainly get it as my 4 day old Qashqai was very nearly written off in 2008 and I discovered that if the car had been only a few weeks older my insurance company would have only paid out on 75% of the value of the car.


I am now a great believe rin over insurance rather then under insurin g- you never know whats ahead

Fee x

 

[williach]

Thanks everyone for the responses. I'm with direct line so I'll check with them and also see if I can get it thrown in as part of the deal. Thanks again

 

[Sarah]

I have worked in the insurance industry for years. I never take out GAP insurance! It's just an additional money maker at point of sale. As long as you are fully comp, and you would want to replace your vehicle, youare fine.

Your motor insurer (or the third party insurer)islegally boundto put youback in the same financial postion you were in prior to your loss.In the event that your vehicle is a total loss, they must give you sufficient funds to replace it on a like for like basis. If you are not happy with the settlement that they offer, you can tell them to source you an equivelent<?: prefix = o ns = "urn:schemas-microsoft-comfficeffice" /><?: PREFIX = O /><O></O>vehicle.

So when I hear sales staff scaring people into buying this cover, it really winds me up.

 

[iamdabe]

Hrm, well thanks for the info Sarah, I do wonder about how my friend ended up in the position where he still had to pay of his car after it was stolen, there was a £3,000 shortfall. maybe he should have haggled with the insurance a bit more...

 

[silverjuke]

Hrm, well thanks for the info Sarah, I do wonder about how my friend ended up in the position where he still had to pay of his car after it was stolen, there was a £3,000 shortfall. maybe he should have haggled with the insurance a bit more...

If there was a difference between the value of the car and the amount owing on his finance, he would have to pay the difference. That's is the only time when it is worth having GAP.
I did think that there was an insurance wide agreement that any new car written off in its first year would be replaced with a new car.
The other time to consider GAP insurance is if you wrote off a two year old car, would you be happy to have it replaced with another two year old car or would you want new?
GAP insurance can be found cheaper on the net than the dealers sell it for.

 

[Sarah]

Yes, you are correct. If a vehicle under 12 mths oldis declared a total loss, they will replace with new, but older than that, they will replace on a like for like basis.

The GAP insurance will allow him to better his position but people really need toknow that they will not be left 'high and dry' if they dont take out the additional cover, as is often indicated by unscrupulous sales staff.

<?: prefix = o ns = "urn:schemas-microsoft-comfficeffice" />

 

[chris78]

You're spot on Sarah. GAP is about getting a brand new car again, so acutally puts you in a better position. Most dealers charge £300 and its a rip off. Try the link below or use it to haggle with your dealer. You'd be amazed how quickly they come down:

http://www.autotrader.co.uk/gap_insurance/gap_insurance.jsp

 

[Strof]

Just checked my insurance (Saga- I am geting on a bit) and it will replacea car up to 24 months old. But there is a rub, max milage 12000, but no restiction in first year.As Idrive more than 12000 miles a year second year does not count for me, plus the market value wouldbe less. So it's GAP for me.
Also had a bad experiance with my son's motorcycle a couple of years ago. It was stolen after6 weeks andinsurance would only pay out market value. It cost me few hundred pounds.

 

[martinhold]

Has anyone taken out Gap Insurance, if so with which company and what type, RTI, RTV etc. I have been looking into this and cannot find Gap Insurance from any main stream insurance companies it seems its only the obscure ones that offer it

 

[...]

dealer offers it but if you have a good car insurance policy you wont need
currently i am with Admiral but will be changing as they only cover market value where as direct line will replace car for a new one with in the 1st 12 months

 

[silverjuke]

Just had a thought about this GAP insurance.
15 months in, if you suffer a right off, your insurer would pay out the current value of the car. Except there will be no used Jukes for sale that are a year+ old, so you won't be able to buy a replacement and will need to trade up and buy another new Juke.

 

[...]

i may misunderstand the gap policy but i believe it will only cover the difference between market value and whats outstanding on finance ( not sure how it works if you pay cash)
friend of mine just had to cliam on his gap he thought he was in for a windful got absolutely nothing
just finance paid off

 

[silverjuke]

i may misunderstand the gap policy but i believe it will only cover the difference between market value and whats outstanding on finance ( not sure how it works if you pay cash)
friend of mine just had to cliam on his gap he thought he was in for a windful got absolutely nothing
just finance paid off

There are different types of GAP insurance. You can get a cheaper one that clears outstanding finance. You can also gets one that pays out the difference between your insurance payout and the price of a brand new car, enabling you to then purchase a new car. You can also get a back-to-invoice policy to reimburse you upto what you paid, not ideal with the VAT rate increasing.
I got a quote to get back to a new car. Car value 16k, max payout £10k (on top of your insurance payout) valid for 3 years from registration, for £179.

 

[theguru]

yeah i'll prob get some GAP insurance but will source it myself, half of what nissan are asking....

 

[chris78]

You're right, there is more than 1 type of gap. You ideally want "return to invoice" insurance which gives you the difference between what the insurance company give you and what you paid for the car

 

[simps]

I'm intrigued by the interest in this, I'm looking into trying to arrange some "group terms" through some of my contacts...
looks like the back to invoice policy may be best value and most sensible.
just as a guide would many people be interested if the premium was, say £150? (don't take this as gospel, I need to do more negotiation!!)