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Gap or not to Gap


Wallynnette

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Hi all, we're looking at an Autotrail vline 610 and I'm wondering should we have Gap ins from the dealer. Or should we shrug off the pressure and look at a 'private' one, or not to bother. I've had it on a couple of vehicles and always thought the £400 was a waste of money, (not if you really need it though).
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I always thought GAP was a waste of money. But whenever I bought a new vehicle I negotiated it into the price. Then I had a new Merc stolen at 6 months old. The insurance offered me 9K below what I paid for it. The GAP insurance was worth every penny then.

 

But with my MH i did not take it out. As the insurance is old for new for the first 2 or 3 years.

 

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Decisions about voluntary insurance should be based on your assessment of the hazard, i.e. how damaging the adverse event would be to you, in this case seriously damaging, and the risk of it actually happening to you, which in this case is probably quite small.

 

I therefore don't insure low risk scenarios when I could afford to take the hit myself if necessary, so for example i don't insure the little luggage trailer I use to take stuff to the tip because it will only cost £500 or so to replace with a new one.  Third party costs when the trailer is on the road are of course covered by the insurance of the towing vehicle.  On the other hand I do take out travel insurance because the worst-case-scenario cost of an incident would be enough to bankrupt me, even though the risk of me having an injury or illness which would need me being flown home in an expensive ambulance aircraft is hopefully quite small.  So cover small potential losses yourself and insure against the bigger ones, that's the principle.

 

GAP insurance for a new MH gives you all your money back if your MH is written off and without it you would suffer a big hit.  Insurers write off vehicles if the cost of repair exceeds about 60% of the market value because they have a deal with salvage companies to pay them a standard one third of market value, so their worst hit is paying you, in effect. two thirds of the market value they actually pay you.  But it is market value we're considering here, not the cost of replacement with another new MH so your new MH depreciates steeply as soon as you start driving it and you would be lucky to end up with much more than half of what it would cost for a new one with new accessories if it was written off after only a few months.

 

On that basis GAP insurance offers good value for owners of new MHs.

 

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  • 2 weeks later...

Hi, although your insurance covers new for old what happens if you are hit by an uninsured driver or an insured driver who is at fault- not you.

In that case you would be claiming from his/her insurance so will the other insurance pay out new for old.

If not then will your insurance make up the difference.

 

I have recently taken out gap because of claiming from another insurance even though it would be via my insurance. Not being alarmist but it may be worth asking the question.

 

Mike

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