Guaranteed Asset Protection (GAP) insurance - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HUKD, you accept our cookie and privacy policy.
Get the HUKD app free at Google Play

Guaranteed Asset Protection (GAP) insurance

bigblueballoon Avatar
8y, 6m agoPosted 8 years, 6 months ago
Hi,

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.
Other Links From Gap:
bigblueballoon Avatar
8y, 6m agoPosted 8 years, 6 months ago
Options

All Comments

(12) Jump to unreadPost a comment
Comments/page:
1 Like #1
Depends very much on how much credit you have on the car.

With some PCP deals the car can end up being valued far less than the outstanding balance on the vehicle meaning if you have a smash the insurance payout will not cover the outstanding credit balance.

GAP insurance will cover this mismatch should you have an accident.

It could be worth it depending on whether you have a PCP or other credit agreement and the value of the car becomes less than the outstanding amount of credit during the aggrement. Personally, I've never taken it out having balanced the risks.
#2
i wish i;d had it whe my impreza turbo was written off afte 13mths from new in 2001. Insurance only pays full cost of new replacement for 1st 12 months!.

A small premium to pay in case of the worst but as the previous post says, depends on how much credit you have on it as invariably the credit can be more than the value of the insurance payout leaving you out of pocket in a future scenario.



S
#3
look at is as £130 od a year for 3 years, quite small fry really.

The problem with insurance is when you dont have it you wish you had but its too late then!
#4
[QUOTE=Ritchie 2]Depends very much on how much credit you have on the car./QUOTE]

The car cost £16,500 and my finance will be with Mazda for £4500 over 3 years. :)
1 Like #5
not worth it then!
#6
Thanks for all the advice. rep left :-D
1 Like #7
Yea and thats a bit expensive is it not.

Got the same insurance for £200 with my Vauxhall financed for £8000.
£400 for £4500 finance is a bit expensive.
#8
Thanks for advice HH, have repped you :-D
1 Like #9
Not worth the GAP at all. I work for a motor finance company and even we'd turn our nose up at offering you the cover due to FSA regulations. I assume it's the motor dealer whose offered you this? They're targeted on the number of GAP's they sell per month and will also pocket some of the premium as a commission (usually £50).

It's only worth the GAP cover if you have a car that will depreciate rapidly or if you have little or no deposit.

Any further questions on the finance send me a pm, more than happy to help.
2 Likes #10
Just bought a Fiat 500 - I was offered GAP insurance by the dealer - more specifically RTI (return to invoice) GAP insurance - will bridge the gap between the amount the insurance company pays out and what the invoice price was rather the finance amount owing.

Dealer wanted around £260 for up to £5000 payout on a car cost of £9300 for 3 yr cover

I found a place on the net called http://www.click4gap.co.uk

I had 3 yr cover up to £7500 payout for £86!!!

This includes a £10 discount - i put in details and stopped the buying process. After a week i had a £10 discount code sent to me via email. You can also get this by being referred by a friend

The cover appears the same to the one fiat offered. Also phoned them - they are based in Wimbledon and didn't go through to a foreign call centre!!!

Asked them why they were so cheap - no dealer commission. Also looks like policies are electronic rather than paper.

I think i should post this as a separate deal!!!

Hope this helps

Matt
#11
Also just checked - and i missed out on this - bah!!! Quidco are offering £22.50 cashback!!!!

Matt
#12
manicmig
Just bought a Fiat 500 - I was offered GAP insurance by the dealer - more specifically RTI (return to invoice) GAP insurance - will bridge the gap between the amount the insurance company pays out and what the invoice price was rather the finance amount owing.

Dealer wanted around £260 for up to £5000 payout on a car cost of £9300 for 3 yr cover

I found a place on the net called http://www.click4gap.co.uk

I had 3 yr cover up to £7500 payout for £86!!!

This includes a £10 discount - i put in details and stopped the buying process. After a week i had a £10 discount code sent to me via email. You can also get this by being referred by a friend

The cover appears the same to the one fiat offered. Also phoned them - they are based in Wimbledon and didn't go through to a foreign call centre!!!

Asked them why they were so cheap - no dealer commission. Also looks like policies are electronic rather than paper.

I think i should post this as a separate deal!!!

Hope this helps

Matt



Thanks. Will def think about getting this as it's so much cheaper than the one offered by Mazda. :thumbsup:

Post a Comment

You don't need an account to leave a comment. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!