GAP Insurance

[Hotrod99]

Hi Guys,

I'm due to collect my car tomorrow morning and i know the dealer has already spoken to me about GAP insurance. It seems wise to take out the policy but i've seen cheaper elsewhere on the Internet then that of what BMW are quoting.

I did a quick search on the forum but was unable to pull up any releavent threads. Can anybody advise whether you took out the policy through BMW and whether you managed to get any substantial discount.
I know a lot of the other policies they sell are more a "sales target tactic" and seem pointless, but I think for peace of mind the GAP insurance seems a safe bet.

Any thoughts/experiences would be much appreciated.

[Schnorbitz]

GAP is so last year, what you really want is RTI - Return To Invoice. Google it and see the benefits

I went with BMW's, after a quick search on the web I couldn't find cheaper for comparable cover.

[bmw13]

GAP is a no brainer and a must. My monthly payment went up $15-$20 due to GAP. My father had his Cayenne GTS stolen twice. My father did not purchase GAP and had a balance due with Porsche of $20k+ because of it. That sucks to make payments on a car that is not even in your possession anymore... It is just not worth, not having!

[Hotrod99]

Originally Posted by Schnorbitz

GAP is so last year, what you really want is RTI - Return To Invoice. Google it and see the benefits

I went with BMW's, after a quick search on the web I couldn't find cheaper for comparable cover.

I thought GAP is the same, i.e. returns back to invoice/makes up the difference against insurance market value to provide you the fully money back?

[jhall1957]

I'm not sure what GAP you guys are concerned with. As a insurance agent I called a adjuster friend and asked the same question about my 2012 Boss 302 Mustang. He said the company will either repair it 100% or replace it and if it was a replacement situation they would pay the going rate for a car of that exact type. I figure repairing one of these limited production cars will be hard to do (get parts) and costly so the biggest risk is that your car will be totalled for a small accident. Then the company will need to come up with a price on the value of your car and they will need to pay dearly!

Now, if you look around for a ready replacement for either my Boss 302 or my 1M you'll see the cost to replace is more then I paid for either one. Where's the GAP?

If you take 72 mth financing you may at some point have a GAP but that's not likely to happen either.

I'd do abit more thinking on the different options and make sure you need the extra GAP coverage before laying down extra money for something you may not need. Also, ask around, some insurance companies are starting to include automatic GAP coverage on the policy.

[Schnorbitz]

Originally Posted by Hotrod99

I thought GAP is the same, i.e. returns back to invoice/makes up the difference against insurance market value to provide you the fully money back?

GAP pays the difference between your insurance payout and your finance settlement.

RTI pays the difference between your insurance payout and the invoice price.

You pick how much cover you want, i.e. £10k, £15k, £20k and pay a premium based on that.

For a car which can't be replaced if written off, you might as well get all your money back, eh?

[ChrisBuer]

If you buy the car with cash (i.e. no finance agreement), then is GAP insurance worth it?

[as7920]

I've never had GAP or Shortfall before but am seriously considering it this time.

BMWs own is pretty expensive however they were offering me a combined deal with Tyre insurance.

Oracle Finance sent me an email today and it looks like they're offering the same products, i believe underwritten by Allianz. Will give them a call and see how competitive they are.

I think it's worth it considering the relative rarity of the car.

[miiipilot]

Originally Posted by ChrisBuer

If you buy the car with cash (i.e. no finance agreement), then is GAP insurance worth it?

You wouldn't need GAP insurance. It's kinda like PMI on a house. It is insurance on the loan. If you owe more than the car is worth (Say you rolled some negative equity into a new loan), then GAP is a good idea. If you owe nothing there nothing to insure.

miiipilot