Return to Invoice GAP insurance
 

Hi there, my dealer is trying to sell me something called Return to Invoice GAP insurance which is supposed to cover the difference between motor insurance settlement and the amount originally paid for the vehicle, or the amount outstanding on finance whichever is greater, in the event of a total loss claim. Anyone has had it before? Is it needed? Thanks

GAP insurance has been around for a number of years and yes aimed at settling your finance in full if the Insurance company come up with a different figure to your outstanding loan amount to clear the car, assuming it had been declared a total loss of course.

You can just pay the difference (if you dont insure it) but in my (personal) opinion I'd always make sure the Insurance company pay out enough to settle, or replace the car like for like if they cant. Focuses the mind to make sure you get a great deal in the first place and maybe put down a sensible deposit rather than bare min.

Cars will depreciate at different rates depending on many factors

Haggle with the dealer he may throw it in with the deal - mine did :)

Off the cuff, £350 was mentioned on a £12,500 loan.
No pressure to take it.

tem.

Better deals can be had on the internet money comparison websites.

Check with your insurance company first. Mine (Tesco) will pay the full price of replacement in the first year if it is written off. Therefore no need for GAP for 1st 12 months but might be worth buying after 12 months from a GAP insurer (assuming they will offer this on cars that are one year old).

My dealer is offering me GAP, wheel insurance and some touch up for scratches (yet to see full details) for circa £800 (half price!). Is it worth it?

Ouch, as Arianne says that is dear, at least seems that to me.

GAP is to cover more than the loan, it is to make up the difference if the car is written off between the insurance payout and the cost of a new car for however long the GAP is running.

I agreed 3 years for new car if written off, and next 2 years to same spec car of same age giving 5 years in total - all thrown in by dealer and I super the wasn't paying much for it ;)

Whats wheel Insurance ..? @ £1600 (ok I know you are getting it cheaper?)
you could pay for a new set
Its these add ons that make the dealers a fortune, they all seem like a good idea at the time... check the small print before you buy..

I would say no. I have never had these insurances on any of my previous cars and never needed them (maybe lucky ?). One Volvo dealer I went to seemed to be more interested in selling me these insurances than the actual car ! Maybe if you invested the Quoted £800 that may cover any future scratches etc.

Not sure of the finer details. Covered cut tyres that need to be replaced and touch up of alloys if scuffed. Also covers GAP, scratch repair and an autoglym paint protection finish (forgot that one it my other post). They are keen to push all of this but think I'll take the risk on this one..