GAP Insurance

[ConnorLSA]

Alright everyone, I didn't bother going for the gap insurance from vw. Does anyone have any recommendations on companies in the uk who do gap for a good price? From experience preferably! Cheers!

 

[GazGTD]

Have used ALA on my last 2 cars and my wife's last few cars also. In my experience brilliant customer service on my last car I paid for 3 years cover but traded it in after 30 months and they discounted the 6 months left off my GTD. Think if I recall I got it for about £106 for back to invoice+.

 

[ConnorLSA]

Thanks mate shall get a quote soon

 

[ConnorLSA]

Can I ask what the difference is between back to invoice+ and vehicle replacement gap insurance?

 

[scottymcd7]

http://www.golfmk7.com/forums/showthread.php?t=5549

 

[Mark V1]

Can I ask what the difference is between back to invoice+ and vehicle replacement gap insurance?

back to invoice pays the difference between what your normal insurance pays out in the event of a total loss and the original invoice price of the car.

Replacement car GAP pays out the difference between the normal insurance payout and the full cost of obtaining an identical replacement new car.

The latter is the only worthwhile product as you can be left short if you managed to get a great discount on the original purchase and after two or three years the price has gone up by 2 to 3%. In this case you would end of paying for insurance and GAP insurance and still having to pay out to restore your position - which is hardly the point...

 

[mk6medic]

How much under water are you? Sometimes it is not really worth it, and depending on your insurance might not be necessary...

 

[Mark V1]

I can assure you with UK insurance on a high value car its very much worth it for the relatively small cost of these GAP policies.....

 

[Betty Swollocks]

I changed my general car insurance to Royal Sun Alliance..... saved about £100 on each car.

They stated that, whilst most insurers would replace a car with a brand new like for like, for 6 or 12 months in the event of total loss or theft.....

Royal Sun Alliance replaces with a brand new car untill the insured vehicle is 24 months old....

I saw this as a free GAP insurance policy for 2 years. GTD fully comp for £250!

 

[Mark V1]

The scenario its intended for is this sort of thing:

You buy a car on finance for 25k.

deposit minimal at say 5% so the financed amount is 23,750

Two years later you open your front door and the car is gone - stolen... never recovered.

Your insurance company assess the loss and pays out 16k as their estimated 'market value' at the time of loss.

However, you still owe 17k on the finance agreement so would need to put in a grand just to terminate it and have nothing left towards your new car which now costs 26k (price increases two years down the line)!

In this situation your GAP 'New car replacement' policy would pay out 10k.... which will be a sizable deposit towards your next car - that instead of a bill for 2.5k!

 

[Mark V1]

They stated that, whilst most insurers would replace a car with a brand new like for like, for 6 or 12 months in the event of total loss or theft..... !

Tempting - my insurance was the same - bur sad as i am I read the small print (the stuff nobody reads) and it highlighted all sorts of caveats regarding their procurement of a new car - essentially only one that was available. As my car is a 3-door DSG with six options a similar car will not be available. I asked myself if the insurance company would then order me a new one and decided that was unlikely and they would just pay market value as an identical was not 'available'.

of course if you drive a 5-door manual car with no options i would not think it would be a problem.

So for the 100 quid or so for the two year GAP policy I decided it was worth it to run side by side with normal insurance right from the start.

 

[Whackamac]

back to invoice pays the difference between what your normal insurance pays out in the event of a total loss and the original invoice price of the car.

Replacement car GAP pays out the difference between the normal insurance payout and the full cost of obtaining an identical replacement new car.

The latter is the only worthwhile product as you can be left short if you managed to get a great discount on the original purchase and after two or three years the price has gone up by 2 to 3%. In this case you would end of paying for insurance and GAP insurance and still having to pay out to restore your position - which is hardly the point...

So.... get gap insurance... total GTI... add $1500... get PP GTI! Yay!

...totally kidding. Unless you are truly unfortunate...

 

[Harrison]

ALA insurance all the way.

 

[ConnorLSA]

Yeah think I'll go with ALA!

 

[FormerRocco]

As I've said on previous threads, I think GAP is worth it. I had a Mk5 GTi stolen and not recovered, I did not have GAP and its galling to think I would have been so much better off if I had it.

Needless to say I have it now on my Mk7...