How much GAP insurance?

Detritus · Jul 17, 2016

Hi all,

I'm still trying to settle on an insurer for my Beach (after having terrible quotes from Safeguard and Adrain Flux and then expensive quotes from Comfort and Caravan Club). However I think I've decided that I do want to take out GAP insurance and was wondering if anyone could recommend what amount as I really have no idea! I'd never heard of GAP insurance before I joined this site so it's all new to me - really appreciate the advice of you wise experienced Cali owners!

The list price of the Beach I'm getting (with all the options added on) is £52,000
I'm paying £41,000 because it's a 3 month old ex-demonstrator and will have approx 2000 miles on it

Questions:
- I think I'd want GAP insurance for 4 years so how much is it likely to depreciate in the 4 years (or how little are the insurance company likely to value it at after 4 years) and therefore how much cover do I need?

- The ALA site asks for the purchase price but should I state the list price rather than the actual purchase price? I think I've got a pretty hefty discount and unlikely to repeat that again but is the figure I enter for the value even relevant or is it just the maximum claim amount that matters?

- ALA do 'back to invoice' or 'vehicle replacement' which is slightly more expensive. I guess back to invoice would ensure I get £41,000 back in total from both insurers but the vehicle replacement would get me a three month old California of the same spec whatever that cost - which I'd think is likely to be at least a few thousand more than the invoice amount

- if I go for 'vehicle replacement' then given its a three month old ex demonstrator does that mean I could be stuck waiting for the right one to come up, or would they just give me the value of one and I'd use the money to buy what I want? Basically is it better not to do this option because its an ex demo or does it not make a difference?

Thanks,

Jez

snowy55 · Jul 18, 2016

Make sure your choice of a insurer will accept what is really a secondhand vehicle for Gap insurance, some don't.

WelshGas · Jul 18, 2016

From my experience " Back to Invoice " gives you the difference from the Insurance Payout to the Invoice Price NOT the List Price.
" Vehicle Replacement " means the GAP Insurance in conjunction with the Insurance Company source and supply a replacement vehicle - easily done if it is a " New " vehicle ( and they will use their influence to get a significant discount ) and so depends if a 3mth old ex-Demonstrator is classed as New.
Some Forum members have had problems when making a claim using 3rd Party GAP Insurance companies.

Rich20 · Jul 18, 2016

I went with ALA and did 4 year replacement vehicle cover just before it was a year old. Cost about £300 for cover up to £50000. Hopefully won't need to use it but will only know if it's worth if the time comes to claim.

AlanC · Jul 18, 2016

I have always thought GAP insurance is a con, just used to line the sales teams pockets. How many folk do we know that have claimed it?

Spend the £300 on something nice and sort any issues out 'as and when and if' they occur.
Life is too short, enjoy the van and don't worry.

Alan

Rich20 · Jul 18, 2016

AlanC said:
I have always thought GAP insurance is a con, just used to line the sales teams pockets. How many folk do we know that have claimed it?

Spend the £300 on something nice and sort any issues out 'as and when and if' they occur.
Life is too short, enjoy the van and don't worry.

Alan

It's the same with any insurance. I agree it is a dubious money maker but I know if I didn't have it any anything terminal did happen, it is doubtful that I would have the funds to replace such an expensive vehicle even with my standard insurance payout. I have never bothered in the past but my cars have never been anywhere near the price of my Cali. I don't know of anyone who has claimed on it but I do know of people that have been very out of pocket due to a write off.

andyinluton · Jul 18, 2016

AlanC said:
I have always thought GAP insurance is a con, just used to line the sales teams pockets. How many folk do we know that have claimed it?

Spend the £300 on something nice and sort any issues out 'as and when and if' they occur.
Life is too short, enjoy the van and don't worry.

Alan

Bit like house insurance then - I've insured to cover if the house burnt down but don't know anyone who has ever claimed........

Detritus · Jul 19, 2016

Thanks for the responses all. I think I've decided 'back to invoice' isn't for me as I think the price I've bought it for covers a good wedge of depreciation. I'm still tempted by vehicle replacement though, will sleep on it for a bit!