Gap insurance - worth getting?

**northernladuk** · 26 March 2019, 17:22

Originally posted by psychocandy View Post

Getting a spanking lease car and they're trying to flog me gap insurance.....

OK the fact that they are trying to flog it means I'll but it off someone else. BUT didn't think of that - I guess mashing your brand new lease car a week after it arrives could cause a problem when the insurers wont pay out to replace?

Anyone got any experience of this? I must admit I always thought insurance meant they had to restore you to the situation you were in before? Or not?

It's generally flogged to clueless suckers so snap his hand off.

It isn't really there for the week after you've bought it. It's there for when you are a year/two years down the line and the depreciation has really started to kick in. The insurance will give you a car at the current value that will not meet the repayments in your lease agreements. The insurance covers the shortfall.

It's like any insurance. You'll be glad you had it if you have your car stolen or written off but it's a complete waste of money if you didn't. You just have to decide what the risks of you having an accident and what will you owe the lease company if it happens. If there is no way you could afford upwards of 6k after an accident (and you still have no car) then it might be worth getting it as the fallout is too great. If you can afford it or think you aren't going to have an accident then it's not really worth it.

Ignore whatever the lease company/dealer offers you. It will be very expensive. Go online and get yourself a quote first. It might look more attractive at the lower prices.

**man** · 26 March 2019, 17:35

Originally posted by northernladuk View Post

current value that will not meet the repayments in your lease agreements. The insurance covers the shortfall.

This. If you can't afford to meet the remaining finance payments (there will be a shortfall of some kind and it could be significant) then that's what gap insurance is for. Current market value for a car is not going to be anything like what you've actually paid for it if you've bought brand new.

**GhostofTarbera** · 26 March 2019, 17:39

What car ?

Sent from my iPhone using Contractor UK Forum

**Old Greg** · 26 March 2019, 20:30

Originally posted by northernladuk View Post

It's generally flogged to clueless suckers so snap his hand off.

It isn't really there for the week after you've bought it. It's there for when you are a year/two years down the line and the depreciation has really started to kick in. The insurance will give you a car at the current value that will not meet the repayments in your lease agreements. The insurance covers the shortfall.

It's like any insurance. You'll be glad you had it if you have your car stolen or written off but it's a complete waste of money if you didn't. You just have to decide what the risks of you having an accident and what will you owe the lease company if it happens. If there is no way you could afford upwards of 6k after an accident (and you still have no car) then it might be worth getting it as the fallout is too great. If you can afford it or think you aren't going to have an accident then it's not really worth it.

Ignore whatever the lease company/dealer offers you. It will be very expensive. Go online and get yourself a quote first. It might look more attractive at the lower prices.

I know who the clueless sucker is in this scenario. That car will be a burnt out crack den within a week.

**psychocandy** · 27 March 2019, 10:38

Originally posted by GhostofTarbera View Post

What car ?

Sent from my iPhone using Contractor UK Forum

merc a class

**psychocandy** · 27 March 2019, 11:08

Turns out because its a lease that the lease company, in the event of total loss, expect the sum total of all the lease payments (36 or whatever) PLUS whatever value they consider they're going to sell it for at the end of the lease.

Obviously, quite a few quid more than you're going to get off insurance company if you mash it in the first week. Seems you can said insurance for £120. for 3 years.

Seems sensible - otherwise you're probably looking at a £5-£6K shortfall.

**northernladuk** · 27 March 2019, 11:19

Originally posted by psychocandy View Post

Turns out because its a lease that the lease company, in the event of total loss, expect the sum total of all the lease payments (36 or whatever) PLUS whatever value they consider they're going to sell it for at the end of the lease.

Obviously, quite a few quid more than you're going to get off insurance company if you mash it in the first week. Seems you can said insurance for £120. for 3 years.

Seems sensible - otherwise you're probably looking at a £5-£6 shortfall.

Which is exactly what we told you.

But don't take the dealer option. Shop around.

**Platypus** · 27 March 2019, 16:40

Originally posted by northernladuk View Post

Ignore whatever the lease company/dealer offers you. It will be very expensive. Go online and get yourself a quote first. It might look more attractive at the lower prices.

Although I don't agree with you that Gap Insurance is for 1-2 years down the line, I do agree with this sage advice ^ my daughter bought her gap insurance independently and it was 1/2 the dealer's price IIRC.

**Platypus** · 27 March 2019, 16:41

Originally posted by psychocandy View Post

you're probably looking at a £5-£6 shortfall.

Wow, I know times are hard, but this brings a tear to my eye

Gap insurance - worth getting?