Best GAP Insurance 2021 | Automatic express
Among the extras that dealers will try to sell you when buying a new car is GAP insurance. It is short for guaranteed asset protection and covers potential shortfalls as a result of an insurance claim if your car is written off or stolen. It is not essential or a legal requirement.
You will usually only be covered by your normal auto insurance for the replacement value of the car, which will be less than the price you paid to buy it new. GAP insurance fills the shortfall so you can buy again, or at least pay off the financing.
There are three main types of GAP coverage: invoice payback pays the difference between the price you paid for the car and the insurance payment; the replacement of the vehicle supplements the settlement amount sufficiently for you to purchase the equivalent new car; Contract lease coverage will pay any fees imposed by a finance company to terminate a contract early.
How we tested them
To see the different prices and coverages available, we took a look at the prices of a three-year GAP insurance policy on a new Mazda MX-5 RF with a list price of £ 32,270. This is the most common coverage that would be available to you at a dealership. We got a quote from an Official Mazda Dealer – Norton Way, in Letchworth, Herts – for £ 449 for three year coverage. We then took to the internet to see if the prices were higher. We set a claim limit of £ 15,000 if requested, to reflect the likely depreciation of the car over three years. In addition to the price, we took into account the ease of use of any site.
Gap insurance will give you extra peace of mind, especially if you finance your car. But don’t expect the dealer to give you the best quote for it – we’ve cut the price by 59% within minutes of browsing online. Even the most avid dealer would have a hard time beating Totallossgap.co.uk, and getting a quote took us seconds. Gapinsurance.co.uk is also worth a try, while Directgap.co.uk might not be the cheapest, but it’s so quick and easy you can get a quote while sitting at the dealership office.
It may take longer than some competitors to get a quote from the Total Loss Gap site, but it is well worth it. After answering seven questions, none of which concerned personal details, we were offered a really interesting quote. It was the only company to mention a delayed start date option. This can be used if your comprehensive auto insurance has a new insurance policy for the old one, which would replace your written-off car with a new version if the claim arises within the first year of ownership. Clear, honest and good value for money.
We would have potentially been put off by the long form we had to fill out with personal information before getting a quote. Still, we persevered and were pleasantly surprised with the price, especially since it covered the full value of the car and included a contribution of £ 250 towards any excess we had to pay on our car insurance. Oddly enough, the premium for the replacement policy wasn’t that high, at £ 283.53, so you’ll have to shop around if you need this coverage.
The Direct Gap site is by far the easiest and fastest to use of the ones we tested. Enter the price of the car and the length of the policy, and you’ll get three quotes for the different types of coverage in under 20 seconds. It’s quick enough to do it on a smartphone while you’re sitting at a sales desk if you want to check if a dealer is offering a decent price.
It wasn’t the cheapest quote, but because it’s so easy, you have little to lose by checking the Direct Gap price.
We really liked the homepage of this site, which had a simple video to explain why you might need GAP coverage. But then he asked for more complex details about the car and the dates of purchase, which took a while to enter. It wasn’t the worst, but it still wasn’t as smooth as Best Buy and the options recommended in this review. We wouldn’t have bothered the long questioning if the price was the highest, but it was behind our first two. If you want replacement value coverage, Insurethegap is competitive, however, with a quote of £ 243.
- Premium: £ 199.30
- Price compared to the dealer: -55.6%
- Rating: 3.5 stars
- Contact: www.motoreasy.com
If you’re in a hurry to get a quote, it’s probably best to avoid MotorEasy. The site offers a range of services and insurance policies for car owners, and therefore asks you to complete a long questionnaire that covers several pages before offering a price. Clearly they aren’t really set up for new cars either, as it asks for details you might not know until you ordered the model. Once you’re done typing and entering the information, the price is reasonable, but we’d rather save time and money elsewhere.
- Premium: £ 228
- Price in relation to the dealer: -49%
- Rating: 3.5 stars
- Contact: www.ala.co.uk
The ALA site is simple and easy to use, it asks a few simple questions, then offers a price without us having to enter any personal details, and all the tricky terms have been explained in plain language. The quote automatically matched the most expensive vehicle replacement policy by default, but the two prices offered cover up to the original value of the car. As with most sites here, a discount code offering five percent showed up while we were online, but it still wasn’t cheap enough to stand a chance here.
The simplicity of this site filled us with joy after some of the overly complicated rivals here, but the familiar layout and wording showed that Platinum Gap is run by the same company as Direct Gap (above). That’s okay, except this policy costs ten cents more. We asked customer services to explain the difference and they told us that “the policy wording is different and is available on the website”. We didn’t see any difference, and since the company itself couldn’t explain why we had to pay the extra, we went elsewhere.
The site is not the easiest to use and automatically defaults to a claims limit of just £ 5,000. It wouldn’t even cover the drop in value when we left the forecourt, so we manually adjusted it up to a more realistic amount of £ 15,000 to represent the likely spread between the value of our car at three years and the price of a new replacement. The resulting bonus was £ 335, although a flashing banner at the top of the site offered us a code for an instant £ 15 discount. It was still too expensive to compete, however.