Your local BMW dealership will have spoken to you about BMW Gap Insurance as part of their duty of care. They really where telling the truth they have an legal and moral obligation to offer your the ability of protecting your BMW with a form of BMW Gap insurance.
That does not mean that you have to buy it from from but they must at least offer to talk to you about it.
That said with the average lenght of ownership of a new statistically 63 months is the standrad 3 years BMW Gap Insurance really offereing your the protectection you want for as long as you want it?
The standard BMW Gap Insurance 3 year cover could leave you exposed when you need it most. After all if the motoring experts say that the average vehicle can loose up to 50% in the first 3 years alone the fourth and fifth year could be as costly.
Bearing in mind that the BMW 3 series has just won an award for being the most reliable fleet car we will use this as an illustration. ( The rates of depreciation are taken from what cars depreciation calculator.
Lets say that you have just bought a BMW 3 Series Saloon 318d SE four door and paid in the region of 4dr£26,680 and protected yourself with 3years BMW Gap insurance.
Now lets me absolutely honest £26,000 is a lot of money for anyone but and it is a big but the BMW is known for its build quality and longevity so you plan to keep the car for some time .
- By the end of year 1 your BMW is estimated to be worth £14,875
- By the end of year 2 you BMW is estimated to be worth £12,175
- By the end of year 3 your BMW is estimated to be worth £9,900
- By the end of year 4your BMW is estimated to be worth £7,925
- Based on these levels of deprecation by the end of year 5 we think that an estimated worth of £6525 is conservative.
Don’t forget that after 3years your standard 3years BMW Gap Insurance will have expired!
In fact if your BMW was written off in year four or five when your BMW Gap Insurance policy has expired you would be completely exposed. You would think that by know any settlement would in fact be sufficient to clear any outstanding finance well possibily? But possibly not and what if you paid cash. Just because you have decided to keep the car past the traditional 3 years mark shouldn’t you be able to protect yourself beyond the standard 3 years BMW Gap insurance.
We searched the Internet and found a gap insurance provider who could supply five years return to invoice and vehicle replacement gap insurance for less than the cost of a standard 3 year BMW Gap insurance policy.
We have to say that they are not part of BMW and have no affiliation with BMW Gap Insurance. Instead they where an independent broker with all the right credentials ( I know we checked). They we also underwritten by a major player in the gap insurance world who currently underwrites policies for the AA warranty, Halfords Auto centres and Kwik fit to name a few.