Insurance booster offered on new purchase?

AvonEnniskerry

I am purchasing a new car and as an extra I am being offered an insurance booster for 3 years. Meaning in the event of a crash the full cost of the car would be paid out as opposed to the depreciated value... Has anyone experience with this. Is it to good to be true?

colm_mcm

Gap insurance?

AvonEnniskerry

colm_mcm wrote:

Gap insurance?

Yes. Thank you. Couldn't think of the name

colm_mcm

Haggle on the price of the insurance and price alternatives too. Don't accept the price the salesman gives you without doing this. They have margin on it to give away.

AvonEnniskerry

Thank you. I am in serious haggle mode at the moment and am in a position to do so as I've been cleared for finance etc.

But the gap insurance is it payable to the buyer or to the business? I really don't get how it works and isn't open to abuse? The garage aren't too clear on it... Only that it means the full cost of the car will be paid out in an incident...

colm_mcm

How are you financing the car?

AvonEnniskerry

colm_mcm wrote:

How are you financing the car?

Pcp

AvonEnniskerry

It's just I understand that obviously the garage will want the full price returned to them. But if an incident happens just before I renew my PCP I've already paid off 3 years... Does that mean I get my money back?

talla

Have been through reclaiming Gap insurance, it was on a HP and not PCP though but works the same.

Gap insurance typically bring you from book value which is what your insurance will pay out on a write off to the purchase price.

E.g. You buy a car worth 30k, which has a final GMFV(Baloon payment) of 10k at the end of three years.

Lets say you write the car off after two years, you will still owe the GMFV + any outstanding payments for the remainder of your contract.

While you may have insured the car with your own insurance for 30k, they may only pay out 20k. Gap insurance would cover you for the balance so in this scenario, 10k.

So you get 30k in overall settlement, but you owe the finance company the GMFV + remaining payments, so lets say 10K + 4K. So after payout you would be up 16K but without a car.

AvonEnniskerry

That's great thanks talla. In my head that makes logical sense but these things often don't work out like that... But you only come to realise after years of payments when you need the service. But in my mind definitely worth the additional cost if something were to happen.

ellobee

Before you go back to the dealer ring an insurance broker and see can they quote you, I would be very reluctant to buy this product from a dealer.

https://www.allianz-assistance.ie/corporate/our-products/automotive/gap-insurance/

AvonEnniskerry

ellobee wrote:

Before you go back to the dealer ring an insurance broker and see can they quote you, I would be very reluctant to buy this product from a dealer.

Thank you. I've just discovered that you can purchase through brokers. Though axa apparently have a max payout of 15k. Also if crash happens within the first year you're insurance company will likely replace with a brand new car anyway.

It's a mine field making these decisions

digitaldr

I got a GAP insurance quote from www.carprotect.ie (UK company behind them seem reputable enough from what I could see online) for €395 for 36 months max payout €20,000. My dealer was looking for €495 with max payout of €25,000 (€20,000 would have been plenty). Anyway he matched the carprotect quote.

AvonEnniskerry

digitaldr wrote:

(UK company behind them seem reputable enough from what I could see online) for €395 for 36 months max payout €20,000. My dealer was looking for €495 with max payout of €25,000 (€20,000 would have been plenty). Anyway he matched the carprotect quote.

Thank you. My dealer is looking for €600... Not sure of the pay out though. There was no mention of a max payout. So I've to find out more about it. But this thread has been very helpful in finding out I can purchase it independently.