GAP Insurance - worth getting or not?

[Amethyst]

First time I've had a car over £1k and not just paid cash ...

so car cash price was £6500 - total finance cost £9520.40
paid 3580 odd over 23 months and settlement 5020... not great is it ... but I'm trying to look at it like it's cost us £155 a month to rent the car ( took me many sleepless nights before we made the decision to go the finance route as I really feel it's chucking money down the loo 🚽 ) then the £980 cash bit takes us to cost of £113.04 a month oop

Had I paid cash 6500 and same happened I'd be £2000 out of pocket or £86 a month oop

so cash still better but I didn't have £6.5k handy when the last car died ( had to pay someone to take it away lol ) and needed something we didn't have to worry about breaking down constantly

got to go through it all again now.... ughhh

[Amethyst]

Oh forgot the question with all my overthinking ... gap was a one off payment of £240 ( should add that into the maths but I'm depressed enough 😂) and we didn't pay a deposit or advance payment or part etc etc for the car.

[Phaeton]

They are money pits aren't they I love & hate cars in equal amounts, but I still think somebody needs to do something about he Auto insurance industry, as in this case, you were not to blame so you should come out of it no worse off.

[Amethyst]

Indeed, unless it's a classic that you never drive they're only going to go down in value. Think now if you want a decent car and good backup if it goes wrong you have to get your head around thinking of it as an expense of 'renting' rather than as purchasing an asset.

Anyway if my car hadn't been written off, then in two years I'd have paid £9.5k for a car worth £3.5k. So that would have been a bummer. And our credit file is better now so we should be able to get a better finance deal.

Saying that I can't find one same spec / yr / mileage as mine for less than £6k now ... sent insurance some examples but not holding out any hope the offer will go above £4.5k.

[Phaeton]

Tell them that you do not want a cash settlement & that you want them to supply you a car equal to the one that was written delivered to you. I know Direct Line used to do this, no idea if they still do.

[Amethyst]

Finally all settled/sorted

Car insurance paid £4200
Gap insurance paid £1750
Total £5950

Original car cost £6500

Difference £550 due to GAP valuation being £4750 and Insurers refusing to budge from £4200 ( various quite legitimate reasons )

so gap paid £6500 less their valuation of £4750

once finance was paid off it left us with 'cash' of £1046
rather than without having gap where we'd have had to find £714 to get everything settled.

I think that shows that the £240 investment in gap was worthwhile

Now to sort out GAP on the new car and hope no bugger reverses into us again ( just started application for drop kerb and planning for a driveway to prevent the same happening again )

[Amethyst]

Oh and I didn't grow up ... got virtually the same car again... yellow again... but couple years newer and the cabrio version ... whoop whoop !

[Phaeton]

Oh and I didn't grow up ... got virtually the same car again... yellow again... but couple years newer and the cabrio version ... whoop whoop !

I was with you all the way until you got to cabrio then I was just disappointed, hope you have lots of Tupperware*

[Amethyst]

Question : *should the option to purchase fee be charged in the case of the car being written off ?( I'm guessing yes )

[des8]

As you can't hand the car back (visions of man with sack of bits...) I suppose you must, but in that case I would have expected the GAP insurance to cover it as it is part of the final finance settlement figure.

[Amethyst]

Oh yes they probably did, it's all settled off, I just got my final statement from the finance and it's a little odd with no explanation and I don't like companies taking the mickey just because they don't think anyone will check the math. I'm sure it's probably fine - just annoying when I don't know instantly why things are where they are - why move the card payment - what's the £125 adjustment - where's £350 come from ( seems to be upfront document fee plus option to purchase fee at £175 each ) - what's interest been charged on .... lol - I really hate Maths so I'll just let it ride - like I have done with a £20 fuel charge in my new agreement - doesn't mean it doesn't irritate me

[des8]

So get your money's worth and ask for an explanation... you're entitled to it*

[Amethyst]

I think I will ... I'm not with them for the finance on the new car so there's no risk in asking now I'm not beholden to them. I'll let you know. Ta Des xx