Gap insurance

[GLM]

Hi,

For those who have been picking up their new cars, or about to, have you gone for any gap policies - if so which ones (e.g. standard Audi offered one)?

If so, what sort of cover have you gone for £25k or more?

Cheers

[RSphantom]

Yes, took out the standard Audi one. It is a three year term but the cover is for £50k max. Cost was about £500. Also what you may not be aware of is if you change or sell the car before the end of the term you can get a refund. Just got £400 back on my policy from the last car

[GLM]

Cool - didn't realise that. Thanks RSphantom

[Mcma1]

Got the audi one myself aswell as tyre and rim policy thrown in to my deal without even asking too hard.

[HF25]

Hi, I pick my car up on Saturday, and am considering the Audi gap policy..

I was quoted for 3 year policy, for vehicles in excess of £60 000, they claim it should be around £1000 and offered me for about £800... If RSphamtom got it for £500 clearly more negotiation to be done...

What is the tyre and rim policy Mcma1? This wasn't mentioned - and what ball park figure did you pay if you don't mind saying of course...

Cheers

[W8PMC]

Total waste of money in my opinion.

If your car is stolen/written off in the 1st year then 99% of Insurers offer New for Old so the 1st year of this cover is a complete con. Secondly if i was in a situation where my Insurer was trying to wriggle out of paying me true market value for my car in years 2/3 then they'd have a fight on their hands & i'd be confident i'd not be out of pocket. Also who in their right mind would be driving a car in negative equity so Insurance payout 'should' always cover the borrowings.

If for some reason you really do want GAP insurance then check specialist Insurers as usually better cover for a lot less money.

Some decent policies about for tyres/wheels though but look online as normally available for significantly less than dealers quote & usually better cover.

[nastro azzurro]

I got the Audi GAP insurance for £450. Was quoted £800 first. Told them I would get alternative cover and they dropped to £450......which is in the ballpark.

[RSphantom]

Hi, I pick my car up on Saturday, and am considering the Audi gap policy..

I was quoted for 3 year policy, for vehicles in excess of £60 000, they claim it should be around £1000 and offered me for about £800... If RSphamtom got it for £500 clearly more negotiation to be done...

What is the tyre and rim policy Mcma1? This wasn't mentioned - and what ball park figure did you pay if you don't mind saying of course...

Cheers

With gap and all the other extra's like tyre and alloy, paint protection etc. it's all part of the overall deal when I negotiate prices etc. I've also got the tyre and alloy protection. I got it for the tyre more than the alloy protection. If you do curb a wheel then be warned, on the 21" its a diamond cut alloy which will mean a send away job. I only took it on the basis that the dealer lends me a car for the duration of my wheel being done. If I remember correctly its £150 per alloy wheel claim up to a maximum of ten claims. Tyre is £300 per claim up to a maximum of 5 claims. Total cost for cover was about £200 for a three year term.

I can understand people thinking all this type of cover is a waste of money and I also agreed if you shop around you can probably get this type of cover cheaper with a more comprehensive policy. However, I'm don't do hassle so if I take these out with the dealer and I get a problem I know its only one phone call or one trip to the dealer to get things sorted. If that costs me a bit more then in my opinion its worth it if I can reduce down the hassle

[Ian_C]

Also who in their right mind would be driving a car in negative equity so Insurance payout 'should' always cover the borrowings.

Errrrrrrrrrrr there must be millions of cars in the UK bought on finance? Overpriced older second hand cars from independent garages on high finance rates with zero deposit and 48+ month terms to ramp up the interest. And new cars being sold on finance with minimal deposit so the car is in negative equity the moment the new owner drives off the forecourt....

[GLM]

Total waste of money in my opinion.

If your car is stolen/written off in the 1st year then 99% of Insurers offer New for Old so the 1st year of this cover is a complete con. Secondly if i was in a situation where my Insurer was trying to wriggle out of paying me true market value for my car in years 2/3 then they'd have a fight on their hands & i'd be confident i'd not be out of pocket. Also who in their right mind would be driving a car in negative equity so Insurance payout 'should' always cover the borrowings.

If for some reason you really do want GAP insurance then check specialist Insurers as usually better cover for a lot less money.

Some decent policies about for tyres/wheels though but look online as normally available for significantly less than dealers quote & usually better cover.

I hear the argument but i think it depends on the type of car. In years 2 or 3 the price on these cars can drop off quite quickly, so if £500 now means i could loose out on £10k in 2/3 years then its a no-brainer. Market value vs cost for brand new on a RS6/M5/E class can be significant in a short space of time.

[HF25]

Yeah, the issue isn't so much in the first year, although a lot of insurance companies are moving away from paying out full value and only paying market, but if you have a total loss in 2 1/2 years, and the market value is 50 % roughly, the gap could make up £40 000 plus, so for the sake of £500 over 3 years as insurances go it's not to bad in my opinion..

Like all insurances and levels of cover its a bit of a gamble... I'm not keen on paying out anymore for insurances than I legally have to, but this makes sense to me for the values involved.

[W8PMC]

Also who in their right mind would be driving a car in negative equity so Insurance payout 'should' always cover the borrowings.

Errrrrrrrrrrr there must be millions of cars in the UK bought on finance? Overpriced older second hand cars from independent garages on high finance rates with zero deposit and 48+ month terms to ramp up the interest. And new cars being sold on finance with minimal deposit so the car is in negative equity the moment the new owner drives off the forecourt....

Agree that many folk finance their cars, but i hardly think your negative equity (can't get mainstream credit) type of car buyer is going to shell out £500 - 1000 on GAP insurance.

If folk want to acquire their cars with 0% deposit & at crazy Interest rates then fair enough, but for the mainstream car buyer, GAP really doesn't hold much use & is in my mind a bit of a rip off.

[W8PMC]

Total waste of money in my opinion.

If your car is stolen/written off in the 1st year then 99% of Insurers offer New for Old so the 1st year of this cover is a complete con. Secondly if i was in a situation where my Insurer was trying to wriggle out of paying me true market value for my car in years 2/3 then they'd have a fight on their hands & i'd be confident i'd not be out of pocket. Also who in their right mind would be driving a car in negative equity so Insurance payout 'should' always cover the borrowings.

If for some reason you really do want GAP insurance then check specialist Insurers as usually better cover for a lot less money.

Some decent policies about for tyres/wheels though but look online as normally available for significantly less than dealers quote & usually better cover.

I hear the argument but i think it depends on the type of car. In years 2 or 3 the price on these cars can drop off quite quickly, so if £500 now means i could loose out on £10k in 2/3 years then its a no-brainer. Market value vs cost for brand new on a RS6/M5/E class can be significant in a short space of time.

So are you saying that your GAP policy would provide you the difference in value between your 2 1/2yr old car & a brand new car for a mere £500 as that's not how i have ever read these policies.

I've many friends who work in insurance & market value is 'usually' aligned with market conditions, so if your RS6 is worth £40k & gets nicked, you'll get as near as damn it £40k payout & if they offer less you demonstrate that their offer is below market value & fight. An Insurer is never going to give you more than something is worth & i don't believe GAP insurance provides a cash bonus payout.

That said, i'm a hater of these fringe (money making for the dealer) insurances & have never purchased an extended warranty (i would on a car if ever needed though).

[lofty]

ALA always seem to be one of the cheapest or try Frank Pickles, I've got a 10% off code for ALA somewhere if anyone goes ahead.
http://www.gapinsurance.co.uk/about-frank-pickles.asp

[Ian_C]

GAP definitely has its time and its place. £1000 is nuts though - that must contain a massive mark up!