Gap Insurance

[wiltsman]

A friend is about to purchase a three year old hatchback from a local main car dealer. The price is in the region of £11k to £12k, with approx 24,000 miles on the clock. The car's bodywork is in good condition and has a full service history, having been serviced from new by the main dealer.

The question is, would you advise her taking out GAP insurance at a cost of £350 for two years cover?

[wiltsman]

Sorry - Gap insurance price is actually £149

[Hymie]

Gap insurance is just another rip-off from the insurance industry, which is a win-win for them. They value your car at less than you paid for it, and offer you the option to pay an additional fee to cover them paying you the market rate for the vehicle.

You have to ask yourself, why are all these car buyers paying over the odds for their vehicle or is the insurance industry just ripping off punters?

[ToraToraTora]

3 year old hatchback, £11-12K seems a hell of a lot, what is it?

[Hymie]

Dealer second-hand car prices have gone mad due to the problems with the supply of brand new vehicles – my boss recently purchased a Mazda (more than 2 years old) for £27k.

[barry1010]

Webuyanycar has almost doubled their offer for my banger over the last year. Check out prices on Autotrader, it's madness

[douglas9401]

The fat lads in too-tight trousers designed for much younger men will sort out any 'shortfall' when you come to buy your next car.

They're a special kind of genius. :-)

[wiltsman]

Thank you for your informative comments.

[barry1010]

I forgot to post my reply. Gap insurance is never worthwhile if you buy a used car, it doesn’t suffer the huge, rapid depreciation that a new car is subject to as soon as you drive it off the forecourt.
Tell your friend to save his money

[wiltsman]

I have Barry! ...... Thanks