Additional Insurance when purchasing a van

[ike]

Hi Folks.. We've just bitten the bullet and purchased another van (from Brownhills Preston). We were offered, but did not purchase, an additional insurance policy as follows - £499 for 4 years cover of £15,000 which would supposedly pay the difference between the cost of replacing the van and that paid by the "normal" insurance (ie the market value) should the van be stolen or a write off. I'd never heard of this before and I suspect it's just another way of getting money out of me but I could be wrong. Has anyone heard of this /bought it? Is it a good idea? The van we have bought - to be picked up early April - is a Pilote Galaxy 50 '54 plate. Does anyone have same? anything to be aware of? Thanks

Irene

[Basil]

Hi Ike,

 

I think you will find this is what is known as 'gap' insurance and has been available to new vehicle buyers for some while, only you can decide whether you feel it is worth the cost. The idea is it covers the difference in value between the invoice purchase price and what an insurer would offer for a total loss based on current market value which as you are probably aware is considerably less than you paid once you take delivery and drive it from the showroom.

See

 

http://personalinsure.about.com/od/policybasics/a/aa021405a_2.htm

 

for more information.

 

Bas

 

P.S. If you Google gap insurance you will find a lot of companies offering it, maybe you could find a more competative deal by buying your own?

[ike]

Basil Thanks for that website info. The cover can certainly be bought for less than Brownhill's was offering and we will need to think about whether it's worth it or not.

cheers Irene