GAP insurance - yay or nay

Smokin Joe · July 18, 2008, 10:58:34 AM

I am buying a one year old Passat for ~£14k.

Should I take out the GAP insurance (return to invoice)? It costs £285 for 3 years.

What's the general consensus?

stpauls · July 18, 2008, 11:01:50 AM

is there a warranty on the car, usually there is a 3 year warranty, so the GAP insurance will only be needed for the final year!!! pointless really then!

Smokin Joe · July 18, 2008, 11:03:57 AM

Quote from: stpauls on July 18, 2008, 11:01:50 AM
is there a warranty on the car, usually there is a 3 year warranty, so the GAP insurance will only be needed for the final year!!! pointless really then!

Stpauls, unless I am missing something, the GAP insurance has nothing to do with the warranty.

The GAP insurance kicks in if the car is lost or written off. If that happens at any stage within 3 years I will get back the £14k that I paid for the car. The warranty has nothing to do with this.

stpauls · July 18, 2008, 11:24:58 AM

sorry Joe, i was thinking of something else!! you are right, it is then up to yoursef if you want to take it. though it will cost you a bit now, if your car is nicked at the end of the 3 years and you don't have it, you will only get the value it will be worth then, rather than the 14K you will have paid for it!!

supersarsfields · July 18, 2008, 11:28:25 AM

Naw your correct Joe. Gap insurance is the difference between what you bought the vehicle for and what your own insurance company will give you for your pre accident value ( PAV) if you total it.
To be honest I'd say it prob is worth it. Considering over the next three years you could lose a few grand from your purchase price. However it's one of those things. If it happens you'll be counting your lucky stars you have it and if it doesn't you'll be wondering why you bothered. But for the peace of mind I'd say it's worth it as it's not that overly expensive.

Smokin Joe · July 18, 2008, 11:39:12 AM

Quote from: stpauls on July 18, 2008, 11:24:58 AM
sorry Joe, i was thinking of something else!! you are right, it is then up to yoursef if you want to take it. though it will cost you a bit now, if your car is nicked at the end of the 3 years and you don't have it, you will only get the value it will be worth then, rather than the 14K you will have paid for it!!

Stpauls - the GAP insurance (return to invoice) means that they give me an amount of money to ensure that I get £14k back, not what it is actually worth.
So for example if you got the car stolen in Year 3 you would be quids in as it would only be worth say £6k (which the insurance company will dtump up) and then the GAP will pay me the other £8k.

£285 doesn't sound like a lot of money in the circumstances............

Hardy · July 18, 2008, 11:41:27 AM

Sounds like an incentive to have it stolen in year 3.

Smokin Joe · July 18, 2008, 11:46:06 AM

Quote from: Hardy on July 18, 2008, 11:41:27 AM
Sounds like an incentive to have it stolen in year 3.

That thought did cross my mind...........

feetofflames · July 18, 2008, 11:58:07 AM

Whats the chances of your county having a game in Croke Park in August 3 years time. If I was you Id offer to drive, park er on the kerb in front of someones house and leave a big fcuk the dubs flag along the back window.

stpauls · July 18, 2008, 12:04:28 PM

Quote from: Smokin Joe on July 18, 2008, 11:39:12 AM
Quote from: stpauls on July 18, 2008, 11:24:58 AM
sorry Joe, i was thinking of something else!! you are right, it is then up to yoursef if you want to take it. though it will cost you a bit now, if your car is nicked at the end of the 3 years and you don't have it, you will only get the value it will be worth then, rather than the 14K you will have paid for it!!

Stpauls - the GAP insurance (return to invoice) means that they give me an amount of money to ensure that I get £14k back, not what it is actually worth.
So for example if you got the car stolen in Year 3 you would be quids in as it would only be worth say £6k (which the insurance company will dtump up) and then the GAP will pay me the other £8k.

£285 doesn't sound like a lot of money in the circumstances............

same difference

you still get your 14K instead of 6k if you didn't have it!!

Smokin Joe · July 18, 2008, 12:14:52 PM

Quote from: stpauls on July 18, 2008, 12:04:28 PM

same difference you still get your 14K instead of 6k if you didn't have it!!

eh, explain how I would get the £14k if I didn't have GAP insurance and the car gets stolen anytime after the first 6 months?

supersarsfields · July 18, 2008, 12:55:48 PM

You wouldn't. The insurance company only has to pay the PAV for the vehicle. Which is what the vehicle would have been worth the day previous to the accident. So lets say it depreciates by 5k over the 2-3 years and you total it in the final year then your own insurance company will pay out 9k (PAV) and GAP insurance will pay the depreciation of 5K.

stpauls · July 18, 2008, 01:09:10 PM

Quote from: Smokin Joe on July 18, 2008, 12:14:52 PM
Quote from: stpauls on July 18, 2008, 12:04:28 PM

same difference you still get your 14K instead of 6k if you didn't have it!!

eh, explain how I would get the £14k if I didn't have GAP insurance and the car gets stolen anytime after the first 6 months?

oops, i really should have read over that before posting it!! the "didn't" shouldn't have been in there!!

feetofflames · July 18, 2008, 01:49:51 PM

St pauls no offence but do you know anything whatsoever, even the tiniest little bit about what the rest of these guys are talking about. If you do so then say Yay!!!

stpauls · July 18, 2008, 01:51:21 PM

Quote from: feetofflames on July 18, 2008, 01:49:51 PM
St pauls no offence but do you know anything whatsoever, even the tiniest little bit about what the rest of these guys are talking about. If you do so then say Yay!!!

i do now feet, thanks for filling me in! god knows where i would be without you.