1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Gap insurance?

Discussion in 'New A3/S3 (8V Chassis)' started by Ryanytchan, Jan 28, 2014.

  1. Ryanytchan
    Offline

    Ryanytchan Member

    Joined:
    Aug 31, 2013
    Messages:
    79
    Likes Received:
    1
    Hi all,

    Just been offered gap for 3 years by the dealer for £400, did all of you get it? Sounds like a good deal to me but just wanted more input
    Cheers
    #1
  2. andywil13
    Offline

    andywil13 Active Member

    Joined:
    Oct 24, 2011
    Messages:
    228
    Likes Received:
    37
    I took a 5 year GAP policy with https://www.directgap.co.uk/

    I paid less than that from memory for a longer policy. The dealer said he "didn't blame me" for taking a 3rd party GAP policy
    #2
    Joetidman likes this.
  3. ruddocks
    Offline

    ruddocks New Member

    Joined:
    Oct 1, 2013
    Messages:
    29
    Likes Received:
    19
    £419 is the usual rate for cars upto £30K i believe, So £400 isn't that much of a good deal. I didnt bother with it this time and took it privately through ALA, for £170 for 3 years. Same back to invoice policy.
    #3
  4. cuke2u
    Offline

    cuke2u Well-Known Member

    Joined:
    Sep 14, 2013
    Messages:
    1,673
    Likes Received:
    343
    I got it over four years for £299...
    #4
  5. cemerson
    Offline

    cemerson Well-Known Member

    Joined:
    May 9, 2013
    Messages:
    3,359
    Likes Received:
    689
    Doesn't seem that great a deal. Shop around - I went with ALA in the end.
    #5
  6. wills_1990
    Offline

    wills_1990 Member

    Joined:
    Jun 6, 2011
    Messages:
    100
    Likes Received:
    20
    I havent taken it out with the dealer yet, but doing some looking around on the net there are a lot of 3rd parties offering 3 years for under £200. The one i think i will be going with is AutoTraderGap who quoted £165 for 3 years with 20k's worth of cover.... seems pretty good to me.
    #6
  7. mjcourtney
    Offline

    mjcourtney Well-Known Member

    Joined:
    Jan 28, 2013
    Messages:
    1,057
    Likes Received:
    240
    Autotrader GAP is done through ALA anyway, who are one of the bigger and more reputable firms :icon_thumright:
    #7
  8. wills_1990
    Offline

    wills_1990 Member

    Joined:
    Jun 6, 2011
    Messages:
    100
    Likes Received:
    20
    Didnt know that, so thanks for the info :)
    #8
  9. TTLAW
    Offline

    TTLAW Member

    Joined:
    Nov 11, 2003
    Messages:
    127
    Likes Received:
    2
    I got a quote from ALA for £129 and the dealer matched it.
    #9
  10. rams_s3
    Offline

    rams_s3 Active Member

    Joined:
    Nov 21, 2010
    Messages:
    284
    Likes Received:
    67
    I use a company called AMS, £155 for 4 years on my s3
    #10
  11. Fanboy
    Offline

    Fanboy An Audi Fanboy

    Joined:
    Apr 21, 2012
    Messages:
    497
    Likes Received:
    27
    What's this insurance! I don't get this... Is it the regular car insurance that you guys are talking about or what...?
    :)
    it...
    #11
  12. mjcourtney
    Offline

    mjcourtney Well-Known Member

    Joined:
    Jan 28, 2013
    Messages:
    1,057
    Likes Received:
    240
    No it's not normal car insurance, it's primarily aimed at cars purchased through finance. It covers the 'gap' between what your normal insurance pays out and the amount you paid for the car - in the event you write it off.

    Good info here:
    https://www.moneyadviceservice.org.uk/en/articles/do-you-need-gap-insurance
    #12
    Charding and Oyster like this.
  13. Fanboy
    Offline

    Fanboy An Audi Fanboy

    Joined:
    Apr 21, 2012
    Messages:
    497
    Likes Received:
    27
    Oh I see... Didn't know coz I never bought cars on finance...

    Thanks for the info, I'll look into this... Who knows, might need it for my next car :)

    Cheers
    #13
  14. andywil13
    Offline

    andywil13 Active Member

    Joined:
    Oct 24, 2011
    Messages:
    228
    Likes Received:
    37
    I bought it even though I bought the car as a cash payment. If the worst happens I want to get exactly the same car which I would never find on the 2nd hard market, I had too many options fitted. If you just order a standard spec car, then its less of an issue
    #14
  15. Psyman79
    Offline

    Psyman79 Active Member

    Joined:
    Nov 1, 2013
    Messages:
    119
    Likes Received:
    34
    Rather than just going for "return to invoice", i went for "combined vehicle replacement" for £169 for 3 years. This goes 1 better than RTV and gives you what it would cost to replace the car at the time of the claim instead of what you originally paid. Therefore you are covered for future increases in price too.
    #15
  16. h5djr
    Offline

    h5djr Well-Known Member

    Joined:
    Jan 23, 2003
    Messages:
    7,484
    Likes Received:
    564
    I have RTV Gap Insurance on my current Sportback and will definitely buy it again for any new 8V I purchase. Nothing worse that your car being written off or stolen and you only getting the insurance valuation for it and having to find quite a bit more to replace the car with what you had.

    Another insurance worth considering is Excess Protection Insurance. This covers the cost of any Excess that you may have to pay if you have an accident and you cannot recover the excess from anyone else. It also allows you to accept a higher excess on your normal policy. I have £750 cover for £47.00 premium. Google Excess Protection Insurance to find out more.
    #16
    warren_S5 and Oyster like this.
  17. PilotAudi
    Offline

    PilotAudi New Member

    Joined:
    Oct 4, 2009
    Messages:
    2,353
    Likes Received:
    478
    I have never seen then point of GAP insurance.

    2 questions

    1. How many times have you had a total right off
    2. How many times have you had a car stolen and not returned.


    As an aside in the first year most insurers give you FREE RTV insurance so why bother (certainly in year one)

    There will be those who suggest why bother with House Insurance.. slightly different and protecting a major asset. Insurance on a £500,000 house is similar to a £30,000 car for many and is generally compulsory when property is mortgaged.

    Again Dave MY Opinion .
    #17
  18. veeeight
    Offline

    veeeight Well-Known Member

    Joined:
    Jul 14, 2012
    Messages:
    1,649
    Likes Received:
    720
    GAP Insurance, like any other non-mandatory statute insurance, reflects personal circumstances, and your outlook on risk.

    The choice of whether to buy life insurance, unable-to-work insurance, travel insurance or any other sort of insurance etc. depends on your personal circumstances, and your aversion to risk. Nothing more, nothing less.



    Two very useful previous threads (for those considering GAP Insurance)

    http://www.audi-sport.net/vb/new-a3-s3-8v-chassis/201513-gap-insurance.html

    http://www.audi-sport.net/vb/new-a3-s3-8v-chassis/197614-gap-insurance-again.html
    #18
    Oyster and h5djr like this.
  19. Scott
    Offline

    Scott Well-Known Member

    Joined:
    Mar 10, 2009
    Messages:
    1,248
    Likes Received:
    102
    Whilst I disagree with the usefulness of many of the insurance products available (Excess Protection Insurance, for example, or Wheel/Tyre Insurance).....I think Gap is a good investment and I would always purchase it, especially as it can be purchased (not through a dealership) for a few pounds per month, and has recently been changed so that you can cancel and receive a pro rata refund at any point, such as if you sell the car after 2 years. I am insured with Elephant and they do NOT provide a new car within the first year of ownership. Besides, even if insurance companies do offer this, you are also able to defer some (maybe all?) Gap policies to start at any time up to a year from taking the policy out.

    It's definitely one of those policies which you hope to never use - but would be VERY glad of, if you ever did, especially 2-3 years into ownership of the vehicle.
    #19
    JohnnyM100, wills_1990 and h5djr like this.
  20. rams_s3
    Offline

    rams_s3 Active Member

    Joined:
    Nov 21, 2010
    Messages:
    284
    Likes Received:
    67
    I had my 1.4 s-line 8v wrote off and my gap/RTI cover enabled be to 'up' models for hardly any increase on my payments (considering the cars worth £15,000 more) so for £150 or whatever it costs it's worth it in my eyes and I'm speaking from experience. The gap returned me to invoice price and my settlement was obviously a lot less than that so had a nice chunk to put down on my s3, hence keeping payments reasonable.
    #20
    PilotAudi likes this.
  21. Oyster
    Offline

    Oyster Member

    Joined:
    Dec 27, 2013
    Messages:
    53
    Likes Received:
    11
    I got it for free,didn't even asked for it.:rock:
    #21
    PilotAudi likes this.
  22. mjcourtney
    Offline

    mjcourtney Well-Known Member

    Joined:
    Jan 28, 2013
    Messages:
    1,057
    Likes Received:
    240
    Well that could be a bit naughty on the dealers part there. Although it was 'free' to you it was certainly included in the price you paid (as the dealer pays a trade price for it) therefore you could have probably negotiated a cheaper price for your car by removing it. From a certain perspective that could be viewed as miss-selling, as you neither wanted or asked for it.

    Just my opinion!
    #22
  23. Scott
    Offline

    Scott Well-Known Member

    Joined:
    Mar 10, 2009
    Messages:
    1,248
    Likes Received:
    102
    I agree. Nothing is free.
    #23
  24. Oyster
    Offline

    Oyster Member

    Joined:
    Dec 27, 2013
    Messages:
    53
    Likes Received:
    11
    Trust me, it's free, when it comes to money I am a tight fistted old man:moa:
    #24
  25. h5djr
    Offline

    h5djr Well-Known Member

    Joined:
    Jan 23, 2003
    Messages:
    7,484
    Likes Received:
    564
    You only need one two year old car to be written off or stolen for GAP Insurance to be worth while. Not a great deal of money for three years peace of mind. That's what any type of insurance is all about.
    #25
  26. PilotAudi
    Offline

    PilotAudi New Member

    Joined:
    Oct 4, 2009
    Messages:
    2,353
    Likes Received:
    478
    Ok so feel free to challenge my logic.

    Car costs £30k (after discount)
    Sell after 3 years for 18k

    End of year one value Circa 25k
    End year 2 value circa 21k

    If the car is a Total right off I get back £30k. Car worth between 18-25k when it happens. So for £400 I am insuring a highly unlikely loss of between 5-12k.

    Over 50 years I could spend £6800 17x400 on Gap insurance.

    I love statistics 97% of the time but don't see this as good value. I might consider if I could buy years 2/3 for about. £100 however!

    There is of course no right answer Dave, just informed opinion.
    #26
  27. cuke2u
    Offline

    cuke2u Well-Known Member

    Joined:
    Sep 14, 2013
    Messages:
    1,673
    Likes Received:
    343
    Only informed opinion means nobody would buy GAP at £400 for three years. Common sense also comes into it...
    #27
    Oyster and PilotAudi like this.
  28. Cumbrian_bob
    Offline

    Cumbrian_bob Member

    Joined:
    Aug 29, 2013
    Messages:
    227
    Likes Received:
    101
    Have to agree with Pilots logic.

    Its the balance betwen insuring the chance to get the ful amount back while accepting the depriciation should you want to sell the car.

    The biggest risk gap insurnace covers you for is gap in the finance and insurance value of the car, i.e. car finance is worth 25k car is worth 22K, so if the car is written of you owe 3k to the finance company.

    But the reality is if you needed to sell the car becuase your financial circumstances changed this would be the same position, and this is accepted when you buy any car because its always a risk of having a car on finance.
    #28
    PilotAudi likes this.
  29. PilotAudi
    Offline

    PilotAudi New Member

    Joined:
    Oct 4, 2009
    Messages:
    2,353
    Likes Received:
    478
    Thanks Bob! I think the same logic applies if you buy the car too. ;-)
    #29
  30. Psyman79
    Offline

    Psyman79 Active Member

    Joined:
    Nov 1, 2013
    Messages:
    119
    Likes Received:
    34
    I've only had 1 car written off so far and didn't have GAP at the time. I was in a pretty bad position financially at the time and ended up having to buy another car on finance while still paying off the balance of my old car. This obviously had a huge impact on my well being at the time. Had i had GAP it would've cleared the balance and i wouldn't have gotten myself in such a mess.
    I'm in a much better position these days but would still be in a mess if i wrote off a £25k car and had to find the uninsured amount.
    Thats just my story though and everyone is different. I, for one, will continue to buy GAP, just not at Audis prices :)
    #30
  31. Oyster
    Offline

    Oyster Member

    Joined:
    Dec 27, 2013
    Messages:
    53
    Likes Received:
    11
    Just never know what's round the corner,however good driver is.
    #31
  32. VeeDubDan
    Offline

    VeeDubDan Active Member

    Joined:
    Jan 27, 2007
    Messages:
    256
    Likes Received:
    67
    Was originally offered it from the dealer for £419, but after some negotiation got it for £239 for 3 years. Whilst it can be had cheaper elsewhere I'm happier to go with Audi and it's one less thing to arrange elsewhere.
    #32
  33. Zig81
    Offline

    Zig81 Member

    Joined:
    Sep 10, 2013
    Messages:
    108
    Likes Received:
    35
    It can't be given for free as it is illegal to give insurance policies away. The price of the GAP will have been discounted off the car or elsewhere.

    I paid 235 from my dealer for an S3.
    #33
  34. MA3RC
    Offline

    MA3RC Member

    Joined:
    Oct 13, 2013
    Messages:
    243
    Likes Received:
    81
    Around 4/5 years ago I had a brand new car. Which I had owned for 2 years and was unfortunately written off. The insurance company paid me more than what I originally bought the car for. I guess I got very lucky on that occasion. But I'm going to be buying GAP for the audi.

    People rave about this ALA, which does get good reviews, also if you sign up to Quidco you can get £50 cashback on any new policy with them!
    #34
  35. driver_tim
    Offline

    driver_tim Active Member

    Joined:
    Jun 17, 2013
    Messages:
    191
    Likes Received:
    28
    Another vote for ALA, also suggest getting vehicle replacement cover rather than just return to invoice. It's not much more expensive.
    #35
  36. seadoo180
    Offline

    seadoo180 New Member

    Joined:
    Jan 26, 2014
    Messages:
    9
    Likes Received:
    0
    Dealer offered £210 29k list price for car, not bad however I had existing policy with ala and simply transferred it over
    #36
  37. SilureMark
    Offline

    SilureMark Active Member

    Joined:
    Jul 18, 2013
    Messages:
    287
    Likes Received:
    98
    That's horrendous! Audi pump up 'their' GAP with commission. I have used ALA a couple of times, around £200 for a better policy than Audi will offer and that was on a TTRS two and a half years ago. GAP is essential on a new or financed car - I have claimed on a GAP Policy when my car was stolen - trust me - you'll be very glad you had it if you have to claim a total loss. I was - ended up getting the full £35k back, which was the original invoice price of the car when I took delivery of it - 2.5 years old when stolen and the insurance company paid me £17k, the GAP insurance then paid me £18k. That's £18k I would not have got had I not taken out GAP. So if people think GAP is pointless, jog on I say ...
    #37
  38. rams_s3
    Offline

    rams_s3 Active Member

    Joined:
    Nov 21, 2010
    Messages:
    284
    Likes Received:
    67
    Exactly my friend!
    #38
  39. cuke2u
    Offline

    cuke2u Well-Known Member

    Joined:
    Sep 14, 2013
    Messages:
    1,673
    Likes Received:
    343
    But that's what all dealership do regardless of the company. It is our job then to beat them down...
    #39
  40. Scott
    Offline

    Scott Well-Known Member

    Joined:
    Mar 10, 2009
    Messages:
    1,248
    Likes Received:
    102
    But when you decide to sell the car, that is YOUR choice, and obviously you can stomach the depreciation otherwise you wouldn't buy a new or nearly new car to begin with. But if someone crashes into you, perhaps even when your car when parked in a car park or on a road, and your car is written off, this could be 2 months or even 2 years into ownership and then you are penalised because you have to buy a used car, which could have 1-2 previous owners more than yours did, an unknown history (who knows if it's been in an accident?) and probably a lower spec....then that is a risk which I would rather be insured for, especially when we're talking the cost of 2 tanks of fuel which covers you for 3-4 years.
    #40

Share This Page