'Gap' Insurance?

[JollyTeaScroller]

Does anyone know of a car insurance that incorporates this 'Gap' insurance? I am buying a new car for the first time in my life and my friend suggested I get one of those 'Gap' insurances in case it gets stolen. Do you think it's worth it?

I am looking at car insurance (Alliance, Aviva, LV etc) but they do not seem to do this 'Gap' one, I found this one company called Motor easy?

Do people usually get it as an add-on on their current insurance, or a separate one from another company?

Gap insurance is usually a specific product for HP or other car loans. It's designed to cover the "gap" between an insurance payout and the remaining loan. It's usually be sold via the car dealer although that might have tightened up with numerous mis-selling scandals.

If you Google compare gap insurance there are a selection of comparison websites where you can get quotes.

My DD bought gap insurance on a new (second hand) car a few years ago. After she had it a couple of years, someone broke into her house, at night, pinched her car keys, and made off with her car. She ended up getting the full amount back that enabled her to buy a replacement car. So, in her case it was worthwhile

Gap insurance is stand alone insurance.

i’ve had it for some previous cars I’ve owned and it pays the difference between the insurance payout and the amount still owed on the car - this will vary depending how your car is financed.

it was relatively cheap and in my opinion was worth every penny.

Gap insurance is a completely separate product to car insurance. If you’re financing the vehicle, I’d definitely get it, but never through a dealer as their markup on gap insurance policies is ridiculous. There are plenty of options online.

It’s standalone insurance and I’m not sure if dealers offer it now, the last 2 cars we have had, we had to organise it ourselves.

Personally I wouldn’t bother as I think all insurance is a scam and only insure house, contents, car and travel, anything optional like this I swerve. Think about the odds of your car being either stolen/ written off and think if you want to spend a significant sum in case it happens.
However if you want it don’t let a car dealer sell it to you it’s a big commission earner.

It was was great when we had a new car written off 13 months after it was purchased. It was on finance and all the remaining finance was cleared and we had a chunk to put towards another new car. Ours was completely smashed thanks to a speeding driver but if you consider how easily cars are written off by insurers now it seems worth it if you are getting a new car.

The only time we didn’t have it was when a new car was written off. We’ve had it ever since. It’s a relatively insignificant sum in the grand scheme of things - a one off amount less than 1% of the car invoice price.

I've only ever bought it as standalone insurance for the period of time I've owed money on a car for. Have never had to use it thankfully, but have sold 2 cars within the insurance period and had a very easy refund of the remainder.