Who buys gap insurance?

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PaulH
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Post by PaulH »

I don't not for last 5 new vehicles over the years

I don't get it
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Paul
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Post by Paul »

Everyone has their own perspective on risk, or protection of a perceived risk vs the cost of that protection.

Like most insurances (whatever you are protecting) they are expensive until you have to use them, and then you’re glad you bought the policy (but no, I don’t take out GAP either!)
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Post by Deleted User 1895 »

I read an article a year or so back which said that the payout on gap insurance is about 10% of the value of premiums. If you imagine that overheads are another 25% or so, that means the margin on Gap insurance is a whopping 65% for the insurance company. Nice business, if you can get it. Having read that, I wouldn't dream of buying it.
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pmg
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Post by pmg »

derekm wrote: Mon Jan 21, 2019 5:37 pm I read an article a year or so back which said that the payout on gap insurance is about 10% of the value of premiums. If you imagine that overheads are another 25% or so, that means the margin on Gap insurance is a whopping 65% for the insurance company. Nice business, if you can get it. Having read that, I wouldn't dream of buying it.
When sold by the garage the commission they get is quite high, often 40% or more
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MCDK
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Post by MCDK »

I buy it. £200 for 4 years cover with the possibility of maybe a 40k payout is worth the punt for me.
Bigboyrolo
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Post by Bigboyrolo »

derekm wrote: Mon Jan 21, 2019 5:37 pm I read an article a year or so back which said that the payout on gap insurance is about 10% of the value of premiums. If you imagine that overheads are another 25% or so, that means the margin on Gap insurance is a whopping 65% for the insurance company. Nice business, if you can get it. Having read that, I wouldn't dream of buying it.
Don't bother with a dealer, get a quote from ALA (01653 916304) and decide for yourself. As with all insurance, far too many myths out 'n about. So what if the margins are huge, they are on your Porsche but you bought it. If you get the cover you want for a price you are willing to pay, that's business.

I have just been paid £700 by ALA on our written off Fiat 500, premium was £96 for 3yrs cover of up to £5K, every little helps. I have it on the Porsche, £176 for £35,000 cover back to invoice for 3yrs, wouldn't be without it.
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jk88
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Post by jk88 »

derekm wrote: Mon Jan 21, 2019 5:37 pm I read an article a year or so back which said that the payout on gap insurance is about 10% of the value of premiums. If you imagine that overheads are another 25% or so, that means the margin on Gap insurance is a whopping 65% for the insurance company. Nice business, if you can get it. Having read that, I wouldn't dream of buying it.

My son's payout a few years ago was almost £6k on a £150 premium, so I guess that's the exception that proves the rule ;)

Like any non compulsary insurance product, you hope it's a complete waste of money but great to have if the worst happens :shock:
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Ray G
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Post by Ray G »

Bigboyrolo wrote: Mon Jan 21, 2019 7:17 pm
derekm wrote: Mon Jan 21, 2019 5:37 pm I read an article a year or so back which said that the payout on gap insurance is about 10% of the value of premiums. If you imagine that overheads are another 25% or so, that means the margin on Gap insurance is a whopping 65% for the insurance company. Nice business, if you can get it. Having read that, I wouldn't dream of buying it.
Don't bother with a dealer, get a quote from ALA (01653 916304) and decide for yourself. As with all insurance, far too many myths out 'n about. So what if the margins are huge, they are on your Porsche but you bought it. If you get the cover you want for a price you are willing to pay, that's business.
Agree. Same as the discussion on the extended warranty.

Does anyone ignore Gap Insurance but buy the Extended Warranty?
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Guy
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Post by Guy »

Ray G wrote: Wed Jan 23, 2019 7:31 am Does anyone ignore Gap Insurance but buy the Extended Warranty?
Yes, me :D
nozydog
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Post by nozydog »

Yep... simply don't buy it from the dealer selling you the car! They usually try to 'hard sell' it when you collect your new car and at an extortionate price! I've usually been quoted around £300-400 which I won't pay, but I'm sure shopping around will get a far better price! I've never taken it on 7 new cars. One tends to drive very, very carefully in a brand new car for the first few months. Having said that if they'll cover the invoice value for 3 years that sounds pretty reasonable if the price is right, but remember it ONLY covers you if the car's completely written off... I've not written off a car yet in 35 years of driving!

It's money for old rope in my book as the chances of writing off a car are very small, and if I did I think I'd just be glad to get out alive!!
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