I've just bought a new Mazda car and I've been offered this GAP insurance for £400 for 3 years.
I just wondered if anyone has taken out GAP insurance, and if so was it worth it. Grateful for any thoughts.
Many thanks and Rep in advance.
This is the blurb from Mazda about what GAP insurance is:
Do you know how much you would be getting from your motor insurance policy if your vehicle was written off due to an accident, fire or theft? Even with comprehensive cover, your motor insurance company will only pay out the market value of your vehicle at the time of the write-off. For example, if your vehicle cost you £15,000, its market value may only be £9,000 after 2 years, and this is what you will receive from your motor insurance company (minus any applicable excess). This means you will have lost £6,000.
Mazda Insurance have a portfolio of Guaranteed Asset Protection (GAP) products that can insure you against Total Loss of your vehicle.
Mazda Insurance Invoice GAP
This will cover you for the difference between your motor insurance companys settlement or Glasss Guide Retail value whichever is the greater at the time of the total loss and the original net invoice price of the vehicle. This is known as Invoice GAP.
Mazda Insurance Combined GAP
Our Mazda Insurance Combined GAP product offers the same benefits as the Mazda Insurance Invoice GAP, while including the Finance GAP Element which pays the difference between your motor insurance companys settlement or Glasss Guide Retail value whichever is the greater at the time of the total loss and the outstanding finance balance due to your finance company.
Rather than have a Finance GAP product as a stand alone cover, we offer this as a Combined Product, in effect having the Invoice GAP and Finance GAP in one policy.
This Policy, will either pay your Finance Company the difference between your Motor Insurance settlement figure and the outstanding Early Settlement Balance due to your Finance Company, or pay you the difference between the Net Invoice Price of your Insured Vehicle at the Start Date and your Motor Insurance Companys settlement figure. Your claim will be settled based on whichever is the greater amount.
So in the event of your vehicle being written off during the period of combined cover, the policy will pay out whichever of the two is greater, up to a maximum of £20,000.
This combined cover is available for up to 36 months, after which you are only covered for Finance element, up to maximum of five years from the date you take delivery of the vehicle.