GAP insurance??

Medusa · Mar 19, 2009

Has anybody had experiance of GAP insurance?

I'm in a position where I have to replace my commute to work car as it is uneconomical to repair. I'm going to be leasing a new one and would like some views on whether GAP insurance is worth having.

What do you all reckon?

ratty · Mar 19, 2009

If you aren't BUYING the car it's not worth having. All gap insurance does is to pay the shortfall between the outstanding finance on the car and what the insurance company pay out in the event of a write off. Gap insurance will often give you the money to buy a new car if it was under 3 years old.

If you aint buying the car it aint worth having.

Medusa · Mar 19, 2009

Don't want to buy, the lease deal I've got works out cheaper overall compared to how much my Golf
cost to buy and the amount I've spent on keeping it on the road with major engine work etc.

I've now got the only vehicle I want to own. My V8 but I wouldn't mind a series but Darren would leave me.

mjltigger · Mar 22, 2009

if you are leasing is it lease hire .. a lot of these schemes are called lease but are actually a hire purchase scheme meaning that if the car is written off you have to pay the 'hire' firm for the car base don the value you 'bought' it.. if the hire firm are trying to sell you gap insurance then the chances are that is what it is... walk away and look for a proper contract lease deal instead.. you can tell the difference because a proper lease deal will include your standard service and maintenance

Medusa · Mar 22, 2009

Cheers Tigger, the plan is direct with Honda and there was no pressure to take the policy. I had received quotes from vehicle lease companies which were very good so I walked into a showroom and Honda matched it. More peace of mind that way.

mjltigger · Mar 23, 2009

I'm pretty certain the Honda scheme is NOT lease hire but a hire purchase.. with a guaranteed (subject to conditions) future value meaning that after a fixed amount of time you can give the car back and not pay any more.. this means that if the car is written off you will have to pay honda a fixed sum of money which is very likely to be more than the value of the car.. meaning you will have a debt and no car after the insurance company has paid you for the loss of the vehicle.. this is what the gap insurance covers and it may well be a good idea.. but then you need to compare the costs with it added.. the lease hire arrangement would not require gap cover as the car is never yours...

Medusa · Mar 23, 2009

mjltigger said:
I'm pretty certain the Honda scheme is NOT lease hire but a hire purchase.. with a guaranteed (subject to conditions) future value meaning that after a fixed amount of time you can give the car back and not pay any more.. this means that if the car is written off you will have to pay honda a fixed sum of money which is very likely to be more than the value of the car.. meaning you will have a debt and no car after the insurance company has paid you for the loss of the vehicle.. this is what the gap insurance covers and it may well be a good idea.. but then you need to compare the costs with it added.. the lease hire arrangement would not require gap cover as the car is never yours...

you can pretty much have what ever type of scheme you like with Honda. The one I'm on is a Lease Hire, the car does not belong to me (I don't want to buy) and I hand it back after the agreed time and don't pay anything else. I'm saving £70 a month with the new car over what my Golf was costing me + my Golf now, after 130K needs a major engine rebuild.

Here's the new one

Sean · Mar 23, 2009

mother in law has got one of those, the fancy v-tec engine in it - all black with black leather interior

scared the ****e outta her when she first put her foot now, thought she was buying the sensible 1.6 version

decent car - naff colour (red)

Medusa · Mar 23, 2009

Sean said:
mother in law has got one of those, the fancy v-tec engine in it - all black with black leather interior

scared the ****e outta her when she first put her foot now, thought she was buying the sensible 1.6 version

decent car - naff colour (red)

Very nice 2.2 Diesel, surprisingly swift tho not as much fun as my old 150 Golf (Rest its soul)

Agreed on the colour, wanted black but as it a lease it needed to be cheap so now there are three bloody red cars on the drive. :doh:

Until I can sort out the Golf that is.

GAP insurance??

Medusa

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ratty

I'm not special I'm limited edition

Medusa

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mjltigger

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Medusa

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mjltigger

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Medusa

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Sean

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Medusa

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