Couldn't disagree more - my son's Mini was written off by a lunatic on the wrong side of the road a few years ago. Car was getting on 3 years old, cost £18k new. Insurance paid out around £12k, ALA paid out the balance. Claim was straightforward and paid within a couple of weeks. Wouldn't be without it on any new car now.
Yes, but has his car was then only worth £12K there was no loss of wealth; there was a possible cash flow issue in finding the cost of replacement. Gap insurance grew as a "fashion" because of the increase in the population relying on borrowing and the increase in PCP as the method of car finance.
Like all insurance, the risk of loss to the policyholder is worth the cost of insurance companies profit margin across the line of business. If an individual is "cash-rich" then that cost may not be worthwhile.
That cost is also likely to be increased if the GAP insurance is bought via the selling car dealer due to higher levels of commission paid to dealer and their salesmen.
Couldn't disagree more - my son's Mini was written off by a lunatic on the wrong side of the road a few years ago. Car was getting on 3 years old, cost £18k new. Insurance paid out around £12k, ALA paid out the balance. Claim was straightforward and paid within a couple of weeks. Wouldn't be without it on any new car now.
Yes, but has his car was then only worth £12K there was no loss of wealth; there was a possible cash flow issue in finding the cost of replacement. Gap insurance grew as a "fashion" because of the increase in the population relying on borrowing and the increase in PCP as the method of car finance.
Like all insurance, the risk of loss to the policyholder is worth the cost of insurance companies profit margin across the line of business. If an individual is "cash-rich" then that cost may not be worthwhile.
That cost is also likely to be increased if the GAP insurance is bought via the selling car dealer due to higher levels of commission paid to dealer and their salesmen.
Noone is recommending buying GAP from any main dealer it's ludicrously expensive vs something like ALA one of the boards sponsors. At around £80 per year I wouldn't be without it.
If my car was written off in 3 years time I would only be able to replace it with a 6 year old Macan, unlikely to be purchased through a Porsche dealer due to age so no warranty worth having. I wouldn't know really if it had been cared for as mine would have been. With GAP I would be able to go and purchase another 2-3 year old Macan from Porsche without having a major cash outlay. All for £80 per yearDoes it for me
MY 2018 Carmine red GTS
MY2014 Boxster S GT Silver Anniversary spec.
2021 Nissan Leaf 62kWh
Just to let you know that we offer a 12 month product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP insurance we feel for some customers it can make a cost effective alternative.
