Recommendations for GAP Insurance

[McVicar]

Hi all, wife just got a new (to her) car. Looking to buy GAP insurance for it. Online reviews are very good for ease of purchase but not very good from people who've had to claim. Can anyone who has had to claim, recommend a company. Thanks.

[Richard Simpson Mark II]

If you bought at the right price a used car won't depreciate as fast as a new one, so there will be no 'gap' to insure. Your payments should be ahead of the depreciation curve. The 'book' value of the car should be greater than what you owe on it unless you've been really badly stitched up on finance. Currently, used car values are actually going up, so I'd save my money if I were you. or, if you are that worried, buy a cheaper car.

[McVicar]

Bought the car from a main dealer so know I paid top dollar. If I take GAP insurance, in the event of a total loss up to three years from now, I will get back the invoice price. For a couple of hundred quid it makes sense to me.

[Snaf MKII]

I dealt with a GAP claim on behalf of a mate who didn't have time for it as he works away and there's a couple of things that I recall.

The price second hand he paid for the vehicle was above the GLASS's guide retail price for the vehicle at the time of purchase, this was due to a lot of extras and a strong market for the car he bought at the time. This alone meant the GAP didn't cover nearly £7k of a £46k car.

He'd put well above average miles on the vehicle and had gathered a lot or pre claim scruffs and scrapes, that and the fact he had his dogs in out of it causing damage resulted in the main insurer making a below market valuation of the vehicle pre accident. The GAP insurer didn't cover this GAP which amounted to another £6k.

What it also did was remove your right to negotiate with your/or third party insurance, the pay out offer was the first offer of the third party + the GAP insurance from the market value - £7k perceived over valuation of purchase price - £6k devaluation for pre accident damage.

The GAP insurance did work out ok in this instance as he got more for the vehicle than if he'd sold it but it was way short of the expectation.

The GAP insurance also prevented us from buying back the vehicle, he didn't want it anyway so I didn't pursue it but thought that was enough to prevent me from ever looking at GAP insurance as I've bought a two vehicles back from insurance claims that I've fixed for next to nothing and continued to use.

[McVicar]

Thanks snaff, I think, from what I've been looking at, that your mate had insurance with a market value clause. During my research I came across this:
A Market Value clause permits the claim administrator to reduce the amount of your claim based either on their belief that you paid too much for it when you originally bought your vehicle or, if your motor insurer pays out less than they think your car is worth at the time of claim - potentially both. Where possible you should avoid any GAP insurance policy that has one or more market value clauses permitting such a reduction in the amount of claim.

From replies I've had on other forums from people with positive claims experience I will go with directgap.co.uk or Gapinsurance.co.uk

Thanks all for the replies

[Tonibe63]

Insurance is a necessary evil but most insurances are bought out of fear and if claimed on they rarely pay out as expected. Statistically the Insurance companies must collect more in premiums than they pay out otherwise they would be bankrupt in weeks so statistically the vast majority of premiums are a waste of money.

[Helicoptermanr22]

Make sure its full INVOICE GAP, this is actually the invoice paid for the term of the GAP policy non declining. Its actually a very good product if bought right. What ever they quote you batter them down. 300 quoted can be supplied for 180 and thats what they can go to if needed.
It should include your full insurance excess paid
The difference to what your ins co payout the GAP ins should cover the full difference for the life of policy.12-24-36 M
Also normally included breakdown and recovery.

[McVicar]

Hi helicopter man. Full invoice is what we went for. Dealer quoted £399 for 3 years we bought direct for £160. Thanks for all replies.

[Helicoptermanr22]

Good stuff.
Sounds about the right amount!

[Snaf MKII]

It begs the question of why don't your insurance company offer this level of cover on your main policy.