prt57 Posted February 18, 2007 Report Share Posted February 18, 2007 Hi, with my new car (S3 ) looming closer I asked my dealer about GAP insurance. The policy they provide only returns you to invoice price and does not take account of the fact that the price may go up over 3 years. It is also expensive!! Other companies do provide "new for old" cover but could you recommend a company that is reliable and will not back out of paying up in the event of the unthinkable happening. Thanks very much, prt Link to comment Share on other sites More sharing options...
wytco0 Posted February 18, 2007 Report Share Posted February 18, 2007 I am not at all convinced by GAP insurance and my recommendation would be none ! Link to comment Share on other sites More sharing options...
dogbucket Posted February 18, 2007 Report Share Posted February 18, 2007 I have always found the idea of insuring my insurance a bit strange really. I said so to the salesman when I bought the R and he seemed genuinely shocked when I did not take it. Link to comment Share on other sites More sharing options...
prt57 Posted February 18, 2007 Author Report Share Posted February 18, 2007 As I understand it your ordinary fully comp insurance will pay out the market value of your car at the time of the total loss. Let us say that the loss occured 2.5 years into the life of a car your insurance payout may be only 50% of the original invoice price. You then possibly cannot afford to make up the balance to replace the car with the same model or only find second hand examples in poorer condition than your original car. You may say that the car that suffered the total loss was not worth the full amount but it was still a car that originally cost you dearly and was of a quality to go with that outlay. As an example my wife drives an 8 year old Golf GTI 1.8T which we bought new for about £18000. It may now be worth about £4000 but it still drives very well and has the comfort associated with the original purchase. If it was stolen I probably would not be able to find another car in the same condition for the £4000 that the insurer would pay out. Consequently I am happy to pay out approx £360 or about £120/year to ensure that for 3 years if a total loss occured to my new car a new one would be ordered for me with no contribution from me. The other benefit of course is that the replacement car would be worth more than the original come time to sell in the future. A colleague had her car stolen from her drive, it then turned up on a country road totally stripped inside and out. No major stress as short time later another car turned up thanks to her GAP insurance. Thanks for your input, prt Link to comment Share on other sites More sharing options...
wytco0 Posted February 18, 2007 Report Share Posted February 18, 2007 Insurance normally aims to put you back in the position you were in at the time of the loss, so if you lose a 3 year old car it will payout roughly what it was worth at the time of loss. If GAP is cheap it’s because the likelihood of it having to pay out is low. I will continue to take the risk myself, as I do with breakdown cover, life insurance and extended warranties etc. Of course the insurance industry is constantly trying to develop new products to protect us from things that we don’t need protecting from ;-) Link to comment Share on other sites More sharing options...
R32Ash Posted February 18, 2007 Report Share Posted February 18, 2007 [ QUOTE ] Insurance normally aims to put you back in the position you were in at the time of the loss, so if you lose a 3 year old car it will payout roughly what it was worth at the time of loss. [/ QUOTE ] But the 'roughly' will be in the insurance company's favour. You could be looking at a pay out of say £15k on a car you could have sold privately for £18k. So even without GAP you'd be lucky to get enough to buy yourself a comparable replacement. Since you can get 3 year's return-to-invoice GAP for less than £200, I think it's a good buy. Each to their own of course, but I like knowing I wouldn't be severely out of pocket if the worst happened and I know people who've lost out in a big way following a total loss on a newish car. Link to comment Share on other sites More sharing options...
wytco0 Posted February 18, 2007 Report Share Posted February 18, 2007 [ QUOTE ] But the 'roughly' will be in the insurance company's favour. You could be looking at a pay out of say £15k on a car you could have sold privately for £18k. So even without GAP you'd be lucky to get enough to buy yourself a comparable replacement. [/ QUOTE ] Yes thats true you have to negotiate with your insurance company but so long as you can show good evidence of the cars market value you should get a settlement near that. [ QUOTE ] Since you can get 3 year's return-to-invoice GAP for less than £200, I think it's a good buy. [/ QUOTE ] I would guess that £200 will buy you maybe £5000 max cover its all about risks, on this basis max loss is potentially £4800 against something that the insurers must think they are not very likely to pay out on. [ QUOTE ] Each to their own of course, [/ QUOTE ] Absolutly Link to comment Share on other sites More sharing options...
stv8 Posted February 18, 2007 Report Share Posted February 18, 2007 Definitely worth having. Did mine via Volkswagen who are underwritten by Pinnacle. Cost me £450 which covers a maximum outlay of £15k (return to invoice) or, more importantly for me, peace of mind for the next 3 years. If you've ever 'haggled' with an insurance company at pay-out time (yes, they will say that your car was worthless) then you'll know having insurance on your insurance is worth every penny. steve Link to comment Share on other sites More sharing options...
OliFH Posted February 18, 2007 Report Share Posted February 18, 2007 VW chucked it in for free when I bought the car - I didn't even know what it was! Link to comment Share on other sites More sharing options...
dharr999 Posted February 18, 2007 Report Share Posted February 18, 2007 I've got mine thru the dealer. Also I was told that the insurance if needed, pays the 1st £250 excess on your insurance. Link to comment Share on other sites More sharing options...
petsy Posted February 18, 2007 Report Share Posted February 18, 2007 it's too late now but you could have got similiar cover for a tad under £300 elsewhere... Link to comment Share on other sites More sharing options...
wytco0 Posted February 19, 2007 Report Share Posted February 19, 2007 [ QUOTE ] I've got mine thru the dealer. Also I was told that the insurance if needed, pays the 1st £250 excess on your insurance. [/ QUOTE ] Cant be worth much then most people dont even get a tank of fuel Link to comment Share on other sites More sharing options...
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