Is it worth spending your hard earned cash on buying gap insurance? What can it do for you and is it worth it?

OK well here is the bomb shell if you have not already figured it out we think Gap insurance is a good thing.

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The problem is that most people are only ever introduced to gap insurance when they buy a vehicle.



Usually at the end of a long sales process the sales executive talks to them about gap protection. They call it by many different names Gap plus, Value Protector, invoice protector, Vehicle replacement, wow the list goes on. Depending upon the dealership you could be quoted anywhere from the average of £395 to well over £1,000. In fact the most expensive I have heard of was just over £1495. No this was not for a Ferrari it was a Vauxhall Astra, finance gap insurance for five years. Staggering!

It can seam like just yet another cost, so like most of us today you pass on your dealerships very kind offer and do yur own research. Part of my job is to monitor what people are saying and writing about gap insurance and hate to say it there is alot of miss information, myths and mixed messages.

Gap Insurance is really very easy to understand and you most definitely do not have to pay thousands.

If your vehicle is written off it can protect you

  • it can clear any outstanding finance
  • it can return you to the invoice price you paid
  • it can return you to the replacement cost even if this has gone up.

All the different variations and names are essentially just combinations of these levels of cover.

Is gap insurance worth it?

Well I don’t like spending money unless I have to, my friends and colleagues call me frugal,  and right now if my vehicle was written off I would not want to simply write a cheque to clear finance or replace the vehicle. I work hard and could think of one million and one other things I would prefer to do with my money other than spending it on clearing finance or replacing a vehicle.

If you don’t mind the idea then hey gap insurance is not for you.

I recently read a post on a forum which was supposedly written by a forum member??? Mmmm If it was they should think about going into advertising as it was possibly one of the best ads I had ever seen.  But to cut a long story short they where discussing the merits of a particular provider and the pros and cons of gap insurance. A genuine forum member responded in double quick time and sumed up gap insurance in just one sentence.

“Gap Insurance – If you have got the money to replace your **** sat in the bank and don’t care what you do with it don’t bother”

That is it really in a nutshell ! If something goes wrong and you really don’t mind spending your own hard earned cash don’t buy it!

On line gap insurance prices could be as low as £100 or less which I think is a real bargin because I can see the benifit in it. So Gap insurance money for old rope well not for me what about you?