Gap Insurance

[msemma]

I am about to buy a new Polo and have been offered "gap insurance" a one off payment of �299. it means if my car is written off within 3 years VW will top up my insurance payout and replace my car with a brand new model. Sounds great in thory, but is it worth it? I am buying the car outright from new, not on finance.

[CheekyChops]

Gap insurance is usually designed for people who buy their cars on finance. If a car is written off, it covers the 'gap' between what the insurance company will pay out and the amount owing on the finance (usually more).

I've never heard of it being sold on new cars with no finance (although this doesn't mean that it isn't!).

[CheekyChops]

Ahh, have just seen VW's website and they do offer what you describe. I think �300 one off probably is worth it if you can afford it. Even if you are the best driver in the world, you don't know when some other idiot is going to come along and collide with you.

[kempie]

Most insurance policies (other than those mandated by law) are indeed bets on the likelihood of an accident occuring.

In this "Back To Invoice" type of GAP policy you have to way up the odds in terms of the cost of the bet (�300) against the possible loss you would incur if the car was written off within the life of the policy (up to 50% of the value of the car at the end of 3 years).