GAP insurance when used prices are so high

[monkeyhanger]

At the end of the day, it's insurance on top of insurance that leaves you in a better situation than you were pre-incident.

Write- off is a highly unlikely scenario for most cars that are moderately expensive and hold their value well. If I had a high perfornance car and lived in an area renowned for car theft (Coventry/Birmingham always seem to be hotspots for Golf R and Audi S3 thefts) I'd be more likely to take it out.

Never had a but of bother with my Gokf R in North Tyneside or a string of other VW hot hatches.

[Griff]

[quoteI’m looking into GAP insurance and am aware that used prices are really high right now. It also doesn’t look like supply chain issues are going to stop any time soon. So if the purpose of GAP is to prevent against depreciation in the event of a total loss, and cars are holding or even increasing in value, is there any point in buying this insurance right now?][/quote]

This exactly what I was wondering. Does anyone know how insurance companies define "market value"? i.e. are the prices quoted by Motorway/WeBuyAnyCar et.al. an indication of what insurance companies will use ...or do they have their own algorithm?

[monkeyhanger]

First amount offered is usually a mickey-take. You have to go back at them and demonstrate how much you need to get a suitable replacement - dealership and autotrader ads etc.

I don't take out GAP, it's insurance on top of insurance for a highly unlikely event. It takes a hell of a lot of damage to write off.a 0-3 year old car with very good residuals, and year 1 is usually a new replacement under a standard policy.

An old colleague used to take out GAP every time he got a car and just before it reached 3 years old, it would be stolen and burnt out. He did this 4 times in my 13 years at that place of work.

[Griff]

First amount offered is usually a mickey-take. You have to go back at them and demonstrate how much you need to get a suitable replacement - dealership and autotrader ads etc.

I don't take out GAP, it's insurance on top of insurance for a highly unlikely event. It takes a hell of a lot of damage to write off.a 0-3 year old car with very good residuals, and year 1 is usually a new replacement under a standard policy.

An old colleague used to take out GAP every time he got a car and just before it reached 3 years old, it would be stolen and burnt out. He did this 4 times in my 13 years at that place of work.

Thanks, good point. All insurance is the same...if you need to use it, it's the best thing ever, if you don't need it, it's a waste of money>

I guess your old colleague is partially responsible for us all paying more for our insurance.

[Solwayboy]

I’ve never bothered with gap insurance. The one time that I was hit by another and they offered an unacceptable settlement, I wrote to their insurer advising that I would pursue settlement directly with the driver via the county court. I further reminded them that any issues re settlement were between them and their client and were nothing to do with me. They immediately settled the full amount. Legally, the insurance is a distraction from the two people involved.

[andrewparker]

I’ve never bothered with gap insurance. The one time that I was hit by another and they offered an unacceptable settlement, I wrote to their insurer advising that I would pursue settlement directly with the driver via the county court. I further reminded them that any issues re settlement were between them and their client and were nothing to do with me. They immediately settled the full amount. Legally, the insurance is a distraction from the two people involved.

You don’t take it out to cover the eventuality of getting a poor settlement figure in the event of a total loss.