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The missus's yeti arrives Friday. Whats the deal with GAP insurance from memory its pretty essential? Anyone recommend a comparison engine or company to deal with for it if so (Skoda wanted 500 bones)

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£500 sounds like a lot as a premium when you think about the total value that would get topped up in the event of a payout.

I thought a 'new car replacement' was quite commonplace in most insurance policies if the car is brand new? Maybe that's a better option to add in economically if possible.

Never bought a brand new car so haven't taken a gap policy but i've thought it makes sense for financed purchases until the value of the car exceeded the amount owed, or if I was buying a premium car (no offence Yeti) and 5k or more was driving off the forecourt with me.

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Why is it essential? As I am sure I have mentioned before I never take out optional insurance cover, cars, vans TV's , washing machines etc. etc. never regretted or needed it and probably saved enough over the years to buy a new car.

Salesmen always look crestfallen when I turn down their offer as its easy money for them.

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I too generally turn down all the optional insurance offers.

Just bought a new beemer 3 series and the normal road insurance covers 'new car replacement' as did many of the other quotes.

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Had a friend work for a company selling GAP insurance and OMG the margins and sales incentives were huge !

It's almost the next PPP

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Well say you buy a brand new car (50k) you drive it out the showroom and it effectively becomes 2nd hand (40k). You write it off a week later, your insurance company pays you 40k however the finance outstanding on the car is 49 800k leaving a 9.8k shortcoming

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Or you ensure your insurance policy states for 1st year its "new for old"

I know a friend had such a policy and when his Clio sport (the rear engine one) thing went up in flames after sucking in a cigarette.

He was paid out on the latest new list price, which was actually more than list when he bought his.

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As Patt says, check your existing policy.

And remember that you don't have to bend over and take what is offered - you negotiate.

BTW I did buy a 62K car without gap insurance.

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I bought one for £56k and figured for the reasons toocan says it was worth it (despite normally also turning down all other warranties and cover of such sorts)

I turned down Porsche at circa £1000 and took one with more cover I think the Porsche one had a £25k and 3 year limit) :

Back to invoice, 5 year period of claim and max £50000 claim value...my understanding is that if I had a total right off for the equivalent small sum of around £90 per year I would get a brand new vehicle, or value to enable me to get one...for FIVE YEARS after purchase...the earlier years are what worried me most TBH

From memory the Porsche car insurance policy I have DOES cover the full cost of replacement new vehicle in the first year mind you.. so that should definitely be checked

my policy with Porsche (car insurance) states

New car replacement
We will replace your car with a new car of the same make and specification (if one is available in the UK) if, within 12 months of you or your partner buying the car
from new:
• the cost of repairing any damage covered by the policy is more than 60% of the car’s list price (including car tax and VAT) when you bought the car;
or
• your car is stolen and not recovered.
We will only replace your car if:
• you or your partner own the car or are buying it under a hire-purchase agreement (not a leasing, contract-hire agreement, or other type of agreement where ownership of the car does not pass to you);
• the hire-purchase company agrees;
and
• you or your partner are the first registered keeper of the car.

Also there are three different types of Gap, with different periods of cover available and different limits too..

I bought mine from 'Shortfall'

https://shortfall.co.uk/gap-insurance/488

I would think for a cheaper vehicle and a lower limit/number of years it could be 'cheap as chips'...maybe a no brainer, depending on how long you expect to keep the car and whether your car insurance policy covers it already for year 1, of course.

Apologies for the length of the reply!

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Just found this thread and reading with interest as I'm considering GAP for my new BGTS.

I have a GAP policy on my BMW from Frank Pickles gapinsurance.co.uk - they allow the policy to be deferred for up to 12 months should your insurance cover the first year.  The price was good too, £250 to cover from the end of year one to the end of year five.

ALA look pretty much the same - except no mention of deferring the start.

I'm still undecided regarding the Boxster as it isn't a DD and will do less than 10k miles per year - as such it's a luxury rather than a necessity.  However, GAP could be very well worth having especially in years 2 to 5 as a total loss payout would be considerably less than a new replacement car - but if I would be happy with one of a similar age the payout should cover it.  Cost is quoted at £330 for four years £50k cover which is not bad, hmmm...

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I bought Gap online a couple of years for a £30k boring saloon. I think it cost  @ £125 for 3 years cover. Never buy from a dealer -shop around. I think for the price it is probably worth it.

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