Got a call yesterday evening from an insurance company who’d been passed my details from the finance company Lotus uses
Basically, in these troubled times they were ‘offering’ a return to invoice cover for the car in the event of a total right off. You pay the premium over 12 moinths & the cover lasts three years, whereby you would recieve the balance of your car insurance cover up to invoice cost of your car (& not just the market value) if it were a total loss. The catch?
Policy cost = �1000
Maximum payout �10,000
So thats �1K for just �10K cover.
You can guess what I told them they could do with their cover
1k is facking expensive. Much cheaper quotes can be had online. Got mine for the Exige for �360 & that was bloody steep. Got a quote the day after for �285.
Sounds like it me, & only any use (possibly!) if you’ve got hefty finance on the car, & you then write it off. The idea being to cover the difference in settling the finance early (capital + some interest + admin), & the market value paid out by your car insurance. Bearing in mind that a new car looses almost 20% immediately it leaves the showroom, it’s easy to see why some folk buy the policies if they’ve borrowed most of the dosh to buy the car in the first place!
I got it as its worth it for the unemployment cover provided as part of the quote & also because my policy guarantees a payout back to invoice rathet than market value.
I think you can get GAP cover for any amount. I certainly didn’t purchase with a large amount of finance.
GAP insurance is a great product but only at the right price e.g. i got cover on the RR, max �15k payout, over 3 years…for �161 (single payment). If the car is written off in the next 36 months, for whatever reason, the policy will top up whatever the insurance payout is so that I get back exactly what I paid for the car in Dec 2008. For �161, that’s a nice bet to make.