I have been offered total loss insurance cover on my new £20,000 car. This will cost ~£400 for 3 years cover - this guarantees I get the full cost price back should the car be stolen or written off - this insurer pays the difference between my own insurer's valuation and the full cost price, meaning I will get the full cost price back. Any thoughts on whether this is worth taking out?

Hi

Do a google search for Gap Insurance. There is some useful info. Confused.com issued a pros and cons page on 12/6/09.

Having spent 20k, is £400 worth paying for extra peace of mind ? Alot of Car Insurances will cover you for full replacement of brand new car, if stolen and not found or written off in the first year. If you can delay taking out the Gap policy for a year, this may save some money.

Huckster

Thanks, Huckster. I will check my own insurance first (although I doubt it will cover me for the full replacement in the first year), then also check the Gap policy to make sure it 'does what it says'! I've just had a look at the confused.com pages, and this seems to recommend the Gap policy.

Please shop around for GAP cover as the dealer will charge you top dollar for GAP cover as they make massive commissions, plus the cost of their gap insurance will be added to your finance so you will end up paying a hell of a lot more than £400 for it.

You should be able to get a decent gap policy for circa £180 for a £20000 car on the internet

You're right! Thanks, dacouche - I have seen quotes as low as £136 - for RTI Gap Insurance. The VRI Gap quotes are much higher, as expected, but I shall certainly take out an on-line policy. I owe you a pint - thanks again.

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