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gap insurance??????

Discussion in 'Trade Talk' started by mbrad, 14 Jan 2011.

  1. mbrad

    mbrad

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    hi all,
    i have just re insured my van and the broker has rang me up and offered me gap insurance. basically, my van is worth 9000 including VAT and this policy is supposed to give me the vans current worth for 36 months if involved in accident that wasnt my fault for £202.
    basically it sounds too good tobe true and as the saying goes, if its too good to be true, it generally is!!
    has anyone had any dealings with this and shoild i go for it? sorry if its in the wrong forum but the searches didnt come up with any other results.
    thanks
     
  2. heatingman

    heatingman

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    From my understanding of gap insurance, its to cover the difference between market value payout and any outstanding debt/finance in the unfortunate event the vehicle is a total loss after an accident.
     
  3. Mw Roofline

    Mw Roofline

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  4. mbrad

    mbrad

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    thanks, so do you think its worth taking out, £200 for a potential £5000 seems great. has anyone had any dealings with trying to get paid out?
     
  5. kirkgas

    kirkgas

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    i have never had to claim on any of them, but have taken it out on any car i have bought on HP for many yrs, ok its a couple of hundred quid, but well worth it, i have spoken to a relation who is a financial adviser and he takes it out as well, they are sound,
    you will know fine well you buy a van for £10k on HP so you are tied into paying at least say £12k back, you crash and write it off a week after buying it, suddenly back at the insurance office the offer they make you for your £10k van is £8200 tops, so you are nearly £4k down, GAP insurance basically takes the £8200 and settles with the HP company for somewhere in between (their in house dealings are not our business to be fair) however you have no van and no debt so you just go and buy another one
     
  6. kirkgas

    kirkgas

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    i have never had to claim on any of them, but have taken it out on any car i have bought on HP for many yrs, ok its a couple of hundred quid, but well worth it, i have spoken to a relation who is a financial adviser and he takes it out as well, they are sound,
    you will know fine well you buy a van for £10k on HP so you are tied into paying at least say £12k back, you crash and write it off a week after buying it, suddenly back at the insurance office the offer they make you for your £10k van is £8200 tops, so you are nearly £4k down, GAP insurance basically takes the £8200 and settles with the HP company for somewhere in between (their in house dealings are not our business to be fair) however you have no van and no debt so you just go and buy another one
     
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  7. mbrad

    mbrad

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    SOLD.
    i see your point so i have agreed to the deal. as it happens i have just finished paying for the van after 3years so i guess i have been lucky to have no problems. i am covered now so its just happy motoring from now on i guess haha
     
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