Opinions Please

[BlackBirdBaz]

On GAP Insurance.

That clever little add on insurance policy for new vehicles which in effect makes up for any shortfall in the event of a write off or theft whereby you in effect have a 'new for old' cover for 3 years.

What do you think, Honda offered me the policy for ?300 and that covers me for 3 years on top of my normal policy.

So in 2 1/2 years if my bike is stolen or written off I get a brand new one

Good or uneccesary ??

Baz

 

[Smoothandquick]

I thought....

GAP insurance was not just for new vehicles but any vehicle where by in the event of a total loss claim, it merely bridged the gap between what the insurance company offers you in settlement against what finance is owing on the vehicle - not a new for old situation....:dunno:

 

[BlackBirdBaz]

Have I been misled then if there is no finance involved ?


Baz

 

[Stevebrooke]

Check the price!!! I only paid ?250 for a policy on a brand new VW Passat.

Could it be more expensive because bikes are easier to write off :dunno:

 

[Smoothandquick]

Unless Honda are offering somethign new....

GAP insurance was set up purely to eliminate the issue of owners still paying for vehicles that had been written off that were heavily financed in the first place....a lot of insurance valuations for write off cases were coming in low, well under the amount of finance still owing, so the GAP left was covered by these insurance policies...

Now if they are offering a different policy, on a new for old basis, for ?300, covering you for 3 years then go for it !!!!! Never heard of that before tho ?? :dunno:

 

[BlackBirdBaz]

In short.......... it is a policy offered by Honda cars which has been offered to Honda bikes.

In effect if I the bike gets written off or stolen within 1st 3 years then,

The write off value + GAP = New Bike At the same value as purchase date.

I know Toyota do something simliar for new vehicles only so maybe its the same as that.

Baz

 

[Smoothandquick]

crikey....

for 300 squidderoonies that sounds reasonable....sounds liek somethign subtley different to the usual GAP insurance then in supporting people who have no or low finance and want the peace of mind knowing that if the worst happens (god forbid) then a new pride and joy is paid for.....:dunno:

I personally wouldn't bother with it, but hey that's me !!!!!

 

[Jaws]

It is a good idea.. however.....

Depending on how much of a tight git you are ( like me ! ) it is worth going to someone like loyds and saying you want a three year policy against the bike being written off for the sum of say, 2 grand..

A chap local to me did this when he bought one of those BMW interstellar battleship cruisers.. Policy was under ?50 a year..

 

[Duck n Dive]

Folks, take note of what JAWS has said.......

As I understand it what you are doing is sort of what he's suggested, except the dealers doing it for you and the value insured is the difference between what the insurance co. pay out and the remaining finance sum at the time of any write off. That's what it was last time anyone explained it to me unless Honda are offering something else??
So it doesn't give you a new bike it just means that you don't end up still owing the finance co. after a write off.


JAWS wisely (sound of hooting owl?) suggests sorting it our for yourself and gives a good example. if you get it from the dealer guess who pockets the difference between the ?150 (or possibly even less) for the insurance element and the ?300 you actually pay.

It's the same with your insurance where you pay extra for legal cover and when the dealer arrnages finance for you.

 

[Smoothandquick]

D&D

you've echoed exactly what I said - but BBB doesn't have any finance so true GAP insurance would be useless.....as there will always remain value in the bike regardless of what the insurance company offer him....

John is talking about taking out sufficient financial insurance such that in the event of a total loss claim he can afford to buy a brand new replacement...I have never heard of dealers offering this before..certainly ain't GAP insurance, that's offered only where finance is taken out as a large proportion of the vehicles value....

 

[BlackBirdBaz]

Copied this para from an insurance company website and it about sums up what I was told at the dealer.........


Policy offers protection against a total loss write-off (and stolen, not recovered vehicles). Total Loss Protection will pay the shortfall between the insurance payout and the original invoice price (less any extras) up to a maximum of ?8,499. (Purchase Price) Specifically aimed at people purchasing vehicles by cash or using non-dealer finance to fund a vehicle purchase.

Baz.

PS......... I think maybe the policy the dealer is selling is more of a total loss protection rather than GAP ??

Whats in a name eh !!