The simple answer is no. Absolutely not. Its a con devised by the smooth talking and highly educated minds of the insurance industry designed to extract as much money from your pockets as possible. And the Modus Operandi to do this is confusion and guilt of not covering your self in the event of an event that may or may never happen but could happen.
You see the insurance industry employs actuaries, these people are really smart. Actuaries basically get paid to predict the future on a financial trajectory based on as set of measurements and parameters. They basically manage risk, these professionals work with the insurance industry to provide data and insight… into you. That’s right YOU.
The upshot of using this data is to create a smooth talking con that is loaded with so much complex small print you would need a doctorate just to understand one sentence. A paragraph? not even Einstein could understand the small print behind GAP insurance and GAP insurers openly admit the small print is complex to understand.
GAP Insurance works on the principle of unforeseen danger. What happens if you buy a new car for £16,000 and after a year you happen to be involved in an accident? GAP Insurance basically removes the depreciation equation meaning that if you have this nonsense insurance policy you will recover the full amount of money you paid for the vehicle 1 year ago.
Sounds good doesn’t it? It sounds almost too good to be true. Of course GAP Insurance comes at a premium, close to £200 on average. You see its all down to the small print because its written in a style designed to confuse and jump consumer loopholes.
But really its the information gleamed from the actuaries, remember them?, that is of the most importance because they will work out the rate of claims made against the amount of non claims. In other words not many people who take out GAP insurance make claims because the actuaries know these people are responsible and therefore easy money is to be made.
Do we have any facts or figures to back these claims up? No but we can make an educated guess based on good old cynicism.
The worrying fact is that well regarded and trusted sources are happy to make you feel guilty by making you or at least trying to persuade you into buying GAP insurance. Which.co.uk, Autotrader.co.uk are just a few of the sellout motoring publications supporting this nonsense. And also Honest John, we’re really not surprised about the latter, the normal man’s man looking out for the downtrodden consumer.
Don’t buy GAP Insurance, if you have £200 then gamble it away because you have more odds of wining big then you will ever have of actually making a successful GAP Insurance claim, should it ever happen. Or just buy a duvet if you want peace of mind comfort cover.