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Car gap insurance.

(10 Posts)
CEvert Sat 15-Feb-14 22:49:26

Just wondering if it is worth taking out a gap insurance on a car I bought. Or us it just another expense that we can do without?

Cindy34 Sat 15-Feb-14 22:52:04

What is it? Perhaps something only in some countries.
Is it the same as normal car insurance that is needed to drive a car on a public road?

StolenShortcake Sat 15-Feb-14 22:54:41

It depends if any finance on the car would be paid off in full if the car got written off.

If you got the current industry valuation, would you be fine?

If not, get gap insurance.

Rockchick1984 Sat 15-Feb-14 22:57:34

It's entirely up to you - have the details been explained to you? Basically if your car was in an accident or stolen, the insurance payout wouldn't cover the cost of the car finance so you would end up without the car and with a balance to repay still. Gap insurance is to cover the difference between your insurance payout and the balance of the finance agreement. It just depends on how risk averse you are, and if you feel it would be worth it in your circumstances.

fivepies Sat 15-Feb-14 22:59:55

We've always taken out gap insurance. Claimed on it once when our car was stolen. We got the difference between the insurance pay out and the purchase price. Definitely took the stress out of buying a replacement car. They were very easy to deal with and a cheque came through quickly.

CEvert Sat 15-Feb-14 23:01:57

If your car is written off or stolen your insurer usually pays out the market value of the car at the time the event took place. Cars depreciate so the amount you get back may be enough to get you a replacement. A gap insurance is taken out alongside the car insurance so that it pays out the difference between the amount you paid for the car and the amount you got from the payout.

CEvert Sat 15-Feb-14 23:04:04

May not be enough*

Thebluedog Sun 16-Feb-14 18:04:32

It really is up to you. My friend had a brand new car, took out the GAP insurance and write it off a while later. She was VERY happy she'd took it out smile

It's one if those things you take out but hope you never have to use.

specialsubject Sun 16-Feb-14 18:16:32

should add you only need it for v. expensive cars bought on finance!

just bought a car for £1300, trade value is apparently £1700 although would believe that if I saw it.

poorbuthappy Sun 16-Feb-14 18:21:58

I took it out when I bought a car from a dealership a few years ago.
When it was written off I rang about the gap insurance to find Mr Ken Thorne had pocketed my premium and not registered my policy. hmm

Cost me £1500.

And of course he had already gone bust and was sailing round the med on his yacht which was of course registered in someone else's name.


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