Hi having read the previous thread re gap insurance I thought that I would start another as the last one was posted last January.

Insurance is one of those things that we all (or at least me) tend to think we know enough about to make a sensible decision, usualy based on price and other extras such as loan car etc, only later to find out that we missed something in the small print. that is why I don't want to be conned into paying gap insurance if it is not worth it.

I am very suspicious of insurance companies so would like to know if anyone has had to claim on their gap insurance policy and if so how did they get on with it paying out.

Finaly if they are thought to be good, how much should I be looking to pay each year for a vehicle being bought for 33k

I work for a company who 'wholesale' gap to the big automotive vendors. We underwrite it and pay the claims....

So perhaps I can help?

I don't work in the gap part of the company but I asked a man who did when I bought the FL2 to see if it was worth it.

He said the claims ratio was extremely low...I don't remember the exact ratio but it it was down in the one percents...

Meaning very very few people who buy gap ever actually make a claim.

On the flip I'm sure the vast majority of claims are paid without hassle. The only time disputes usually arise is when the customer has been mis-sold a policy (the dealer has made promises the policy cant keep) and the customer havent taken the care to read the keyfacts and small print.

It is in the interest of delears to sell you gap as the take the lions share of the premium as commission.


Its your call at the end of the day. Valid claims will be paid without issue (its against the law not to!) but you have to figure out what the chance of ever needing to claim is.

I certainly didnt think the gamble was worth the money. '57 GS TD4 in Stornoway. Privacy, Leather, Tred Cills. From ebay etc.. 18" 12 spoke HSE alloys, rear spoiler, clear side repeaters with clear leds, led interior light to replace bulbs, sports exhaust trim, TomTom 720.
Favourite Off road vehicle, still my Santa Cruz Mountain Bike! http://www.team-banana-racing.com

I rememeber this moment in the vehicle buying process very clearly! Basically, they wait until you have finally made your big decision to spend a lot of hard-earned cash on your FL2 baby. At this moment of extreme vulnerability, they gently hit you with a few "what ifs"
What if the baby sicks up all over your upholstery? ...... Hey buy this extra fabric clean and seal service! (A lot cheaper to buy a can and do it yourself)
What if someone totals your car on the drive back home? ..... Buy this gap insurance!
and so on .....

I consulted my brother who sells cars in Canada .... his advice ...."No, that's where the sales guy gets his best commission". It all comes down to a judgement on the probabilities of these risks. It could happen ... but how likely is it? The fact that this is such an earner for the dealership suggests that the probability is very very low. So unless you are of very nervous disposition, or feel very unlucky, I'd forget the gap insurance and all the rest!  Life is not a dress rehearsal!

Referring back to the original post 'gap query part 1' around where to buy and what to buy...

Just like buying any other insurance policy; sharpen your pencil and do your home work.
Don't be under pressure to buy and do read the key facts. Make sure that you know what are expecting to get and then check the small print against that.

I have no idea if the cut-out-the-middle-man web sites are cheaper but it doesn't take a rocket scientist to do the math when you subtract the massive commission whack the dealers get. Just ensure that the company selling and administering the policy on the site is signed up to all the regulatory bodies , FSA etc.. they shouldn't really be trading if they aren't. '57 GS TD4 in Stornoway. Privacy, Leather, Tred Cills. From ebay etc.. 18" 12 spoke HSE alloys, rear spoiler, clear side repeaters with clear leds, led interior light to replace bulbs, sports exhaust trim, TomTom 720.
Favourite Off road vehicle, still my Santa Cruz Mountain Bike! http://www.team-banana-racing.com

my colleague has just bought a new Q5 (to keep up with my 2010 F2). Standard insurance cost him about £450 fully comp for a year. Gap insurance - which as I understand it, covers the difference between the amount paid out by standard insurance and the original mkt value of the car, was quoted through the dealer at £600. Without going any further you can see what terrible value this is. Any anyway, there are some insurers who will provide a "new for old" policy within their standard insurance, so you might not need to go for specific Gap insurance for those about to rock...

Gap insurance, extended warranty, "new for old (if you pay a bit extra)",. IMHO, all a waste of money and a complete rip-off.

Calculate the risk, the insurance companies certainly have.

These days, things are FAR more relable than before, and the risk of having a vehicle stolen is also, believe it or not, a lot less than 5 or 6 years ago!

Basically, you've got to be bloody unlucky to need to claim on this sort of policy.

It's always a risk/ballance equation, and I would never argue that some people will be better off. What I would argue against is that the some will mostly be the insurance companies.

Obviosly, this being an internet forum, we will find that 90% of our listeners are in the "unlucky" group  We Don't Care About Pot Holes !!

I've got GAP insurance. Cost 400 quid for 3 years from the supplying LR dealer, but as said, it only covers you up to the original invoice value.

Would I buy it again? Yes, but I'd shop round. Can't remember if Saga or NUF cover cars for 2 years or until a certain milage new for old.

All our vehicles are GAP'd up, it's just a nice little piece of mind if it gets nicked/torched/written off in the 3 years. Mine: 2012 Golf GTI Edition 35
Family's: 2009 Freelander 2 HSE TD4 Auto, Stornoway

Yorkshire - God's County