My friendly insurance company made a point of telling me that a total loss payout on our new-to-us car would only be current market value, which I guess means bottom book.
Fair enough - I know that, but then I bethought myself - our new purchase is waaay over top book for two reasons -it's much lower than average mileage for the year, in pristine condition and the automatic version of the Jazz does seem to be much stronger in price than the equivalent manual version.
Is Gap insurance worth it - if I can find it at a sensible cost for a car over 10 years old?
Real-life experiences anyone?
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Gap insurance for a 10 y.o. car?
A wind up surely!
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Why a wind up? If bottom book is say 1200, and it owes 3000 and would cost that to replace, why not?
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Most insurers who provide GAP insurance have a vehicle age limit - eg with ALA it is 7 years.
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I took out GAP insurance when I purchased my 6 year old Subaru ... another con IMO.
[no fool like an old fool)
:}
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Without looking it up I too would expect there's an age limit for GAP.
However if it's available it's probably more logical on the OP's car than in many other cases, as anything more than the slightest bump is going to write it off. It would have to be Return To Invoice GAP though.
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They should pay out the market value - not 'bottom book'. The market value should take into account auto and mileage.
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Current market value is what a dealer forecourt ticket says, less an assumed discount. (Few cars change hand for forecourt advertised prices).
So not bottom book, unless it is a shabby example but the amount you'd expect to pay to get an identical model of the same age and mileage. But if it's a classic and worth more than the new price, best to get agreed value insurance and cut out the arguing. The Morgan was under £150 new in 1930, and insured for £34000 now.
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GAP insurance is there to pay the difference between what your car is actually worth and what you need/want to get for it if its written off.
You may need that difference if your car is on finance and the total payable is more than the vehicle is worth.
You may need/want that difference if you bought the car for more than it was worth.
But mostly, I am surprised that so many people think it worthwhile.
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GAP insurance - Falkirk Bairn
