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Old 17-11-2007, 02:57 PM
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puter puter is offline
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Location: Congleton. Cheshire
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Default GAP Insurance

My wife recently purchased a new C class and was offered GAP insurance by the dealer, which she declined. Looking on the internet lots of people are offering this type of cover, and I would appreciate comments from forum members who have knowledge and experience with this type of cover.
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Old 17-11-2007, 10:51 PM
joem joem is offline
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Location: Leicestershire
Posts: 185

There are two types of gap insurance, invoice gap and finance gap.

Invoice gap covers you for the difference between the payout from your insurance company when they write a vehicle off and the full price you paid for it.

Finance gap covers the difference between the insurance payout and the outstanding finance on the vehicle. If the vehicle is written off shortly after purchase on finance it is likely - especially if the vehicle is bought on a low or zero deposit scheme - that the outstanding finance is more than the vehicle is worth. Your insurance company would only give you what the vehicle was worth leaving you out of pocket in settling the finance (which you would have to do if the vehicle is written off).

My view is both are worthwhile. Invoice gap can be expensive wheras finance gap is usually quite cheap. Finance gap is only any use if you buy the car on finance obviously.

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Old 17-11-2007, 10:58 PM
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television television is offline
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Thank you Joe, I did not know any of that, thank you

Don't worry, it only seems kinky the first time
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Old 17-11-2007, 11:06 PM
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whitenemesis whitenemesis is offline
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Thanks Joe, clearly explained.

Like any insurance, you pay your money, if you don't need to claim it's gone (wasted?). If you do claim you are (usually) quids in and relieved.

All to do with peace of mind...
C270 CDI - Gone but not Forgotten
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Old 18-11-2007, 12:12 AM
Juddian Juddian is offline
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We are with NFU and they provide 2 years new for old replacement if your cars stolen or written off.

They are not really any more expensive than other good insurance companies and that Gap type cover is a good saving.

How that compares with the Gap cover you are explaining you will probably be able to explain better than me.

When we bought new this year the dealer wanted to sell us gap cover but he knew straight away about the NFU cover and stopped trying, hopefully its up to par.
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Old 18-11-2007, 01:55 AM
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oldcro oldcro is offline
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When I bought my C320CDi Elegance I was offered GAP insurance which covered the cost of a new car for three years. The price was £400 which I thought was very expensive as many insurances will replace new with new during the first year. Considering my fully comp. insurance was £270 including legal cover and their potential costs in an injury claim can run into thousands, even millions of pounds it made the GAP insurance very expensive. There also was a £2500 limit on any payout.

When I checked the internet I found pages of insurance companies offering such cover which meant it was a very profitable scheme for them.

Just have to trust my car is not written off or stolen for the next three years.
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Old 18-11-2007, 02:45 AM
hawk20 hawk20 is offline
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Seems to be the latest bit if icing on the cake for many dealers. Premiums I have been offered seem outrageous.
ML250 BlueTEC SPORT Jan 2013
ML350cdi Sport Jan 2010
E220cdi Estate Avantgarde Mar 2008 (sold)
A180cdi Avantgarde SE Auto Sept 2007 (sold)
S320cdi dec 2005 (sold)
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Old 18-11-2007, 09:13 AM
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puter puter is offline
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Thanks everyone for responding to my GAP query. I also received an e-mail from a friend who reads but doesn’t post on this forum, drawing attention to:

Their FAQ section is worth a read and thanks to Joe, and 4gap I know much more about GAP insurance than I did 24 hours ago!
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Old 18-11-2007, 12:21 PM
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David Nock David Nock is offline
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Like any insurance, take the risk yourself if you can bear it.
Most people can bear the risk on extended warranties and white goods/similar failing and hence the debate which says you are paying mony to the electrical chains etc for nothing.
Not many people can bear the risk on houses being destroyed or 3rd party claims arising from driving so we all (mostly all) insure against them.
GAP insurance? What's the chances of a write off? Are you able to make up the difference yourself?
I know I wouldn't bother with it.
PS Most Councils 'self insure' a large portion of their day-to-day risks because they're big enough to take on those risks themselves. Same principle.

Last edited by David Nock; 18-11-2007 at 12:24 PM.
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Old 18-11-2007, 12:32 PM
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jberks jberks is offline
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I turned down gap insurance and spent the money on an extra years mechanical warranty instead. I figured that the risk of a mechanical or electronic failure was far greater than the car being written off and that in any case, 90% of write offs are financial so commonly, whilst it may be a write off from the insurance co's POV, there are alternatives (buy back and fix) from mine.
Plus, a car as expensive as a merc is sufficently valuable, even at 3 years old, to make write offs rare.
It could happen, true, but it's unlikely and you have to draw the line somewhere.
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