[Sparklingfairy]

Hi all,
Went to the dealership today to sign some documentation as my car arriving in the next two weeks- 1.2 allure

I have had a quote from the dealership for gap insurance as follows:

1x payment of 11.12
35x payments each £7.20

Total £263.12

However, I got a quote via ALA (as recommended by someone else on here) the total for three years= £103 overall.

Why is it such a huge price difference? Should I firstly go ahead with gap insurance or is it a pointless product? Or go ahead with ALA Or dealership if I do?

Thanks in advance x

 

[Jack'sMam]

Hi Sparklingfairy

IMO gap insurance is a bit pointless especially in the first year (or two depending on your insurance policy) as gap insurancewould only comeinto use if your car is a write off (or I think stolen but not 100% sure on that). Check your insurance policy as a lot of companies will replace your car with a brand new same marque car if it's written off in the first year - some companies cover this for two years - so you're basically paying twice if you take out the gap insurance in that first (and maybe second) year.

It might be worth considering once you're not covered by your own insurance policy but even then I would definitely buy it myselfrather than through Peugeot as you will get a better deal.

Don't know why there is such a huge price difference - possibly Peugeot taking a nice little commission?!

Hope the next two weeks pass quickly for you - you will definitely enjoy driving your new car.

Jack'sMam xx

 

[Frank Bullitt]

Why is it such a huge price difference? Should I firstly go ahead with gap insurance or is it a pointless product? Or go ahead with ALA Or dealership if I do?

The price difference is down to the commission the dealer gets on the insurance - GAP, 'superguard' type products it's where the real commission is earned.

As has been said, check your insurance policy and if it doesn't have a new-car replacement policy go for the ALA deal that's being offered here...

 

[jonesy]

I worked in the Motor Trade for 25 years+ and can honestly say that Guaranteed Asset Protection (GAP) is a waste of time IMHO, its meant to help you if your car is written off or stolen and you owe more than the replacememt value or the equivalant replacement car is more to buy, ie the insurer pays the 'GAP' so you dont have to, most insurance companies will try and give you a low value/settlement if your unfortunate to have it written off/stolen, but you can contest this and they should honour a like for like replacement (after a bit of negiotiating).

Hope this helps

 

[burty]

I took out the ALA gap insurance.My insurance company doesn't cover the full replacement cost so I figured the ALA cover is cheap enough.Like you said £103 for three years is pretty small money considering. Edited by: burty

 

[Dan]

Someone at work had their car written off in the floods recently. Gap insurance ensured she could get a brand new car rather than the £5k her insurance company offered. (Car was 3 years old.)

I took it out even though my insurance covered me for the first year. In three years time the car will be worth considerably less and its nice to know that I could get a brand new one thanks to the GAP cover should it be written off. I think ALA also offer four year policies.

So yes, the first year GAP insurance was a waste but the other couple of years could be worth it. Like any insurance product it depends on your attitude to risk.. and as mentioned above, dealers can add a couple of hundred on to the price knowing most won't shop around.

I'm sure you are aware but if not we get a discount with ALA too:http://www.2008ownersclub.co.uk/forum/discount-on-gap-insurance_topic7.html

 

[ricaird]

Also consider HelpUCover - I pay £3.71 per month for full invoice replacement cover, which equates to £133.56 for the life of the policy. It's a good way of spreading the payment if you don't want to fork out between £100-£300 for a gap policy. Also, helpucover qualifies for £24.24 cashback through Topcashback payable after month 3, or £24 through Quidco - brings the overall cost to £109 without having to fork out a lump.