MRS. O,read me, bought herself a new car at the weekend (Mitsubishi Colt CZC3 in racing blue, before you ask*)and I’m now being asked if I want gap insurance.
Gap insurance? Well it’s kind of logical. You take out the insurance to cover any difference between the main insurance (rip off) settlement price if you have a major loss and the cost of a replacement new vehicle.
£5,000 difference in values on a £12,000 car for 3 years for £200 one off payment is a sort of benchmark cost.
Compared to the cost of a tracker or a (rip off) Thatcham approved alarm, that’s cheap.
Given I’m in for £12 K, do I take this option?
Oldguy.
The suggestion that having got Mrs. O a new car, we should now nip down to the Ducati dealers was not met with “great enthusiasm”.
GAP insurance is NOT covering the difference between the insurance settlement and the cost of a new vehicle.
GAP insurance IS covering the difference between the insurance settlement and your outstanding car loan settlement figure at the time of the insurance settlement.
It is only paying out when your insurance is. So you need to be and stay fully comp.
Will not pay iif your insurance decide not to pay for what ever reason.
So if your main insurance doesn’t cover you, then the GAP insurance won’t cover you… can you take out insurance against that? I call it The Whatever-the-f*ck-happens-to-your-motor-you-get-a-brand-new-one policy scheme, all for just one easy payment of the full new cost of your car to my bank account. PM me for details.
I have just got gap insurance on my new car, now god forbid I was to have an accident and write my car off then the gap insurance would pay my excess and cover the difference between the insurance settlement figure and the cost of replacing my car like for like, I know this is true as my mate wrote of his brand new blade last year (yes Martin roundabout blade lol ) and this is how things worked for him
Personally I think these kind of policies are a waste of money. I’d be interested to see some data on how many times they pay out and if the punter is actually happy with the deal.
It reminds me of those extended insurance olicies on washing machines and appliances, does anyone ever really claim AND get their money.
Worth the money if you buy your bikes new for cash. I have it and my mate had it and got a full like for like new replacement for his R1 when it got stolen. New bike for a 1 year old one that was nicked, now that’s value!!
I got it on 2 previous cars. Be aware though, it may last 3 years but if you decide to sell the car its NOT transferable to another car or the new owner. I only kept my cars a year so it was wasted really.
Already decided that if I take it at all, it will be the higher premium replacement vehicle policy. (VRI) The cheap but simple “pay off your debts” ones don’t make too much sense
Oh, and if you read the terms, some are transferrable to new owners and one, at least, does cover your first year loss of NCD.
(How do you prove the insurance company are now using a higher base premium while still, apparently, giving you the full NCD?)
So do I take out the insurance or trouser the £200?
I call it The Whatever-the-f*ck-happens-to-your-motor-you-get-a-brand-new-one policy scheme, all for just one easy payment of the full new cost of your car to my bank account. PM me for details.
) and this is how things worked for him 
