Gap/Shortfall insurance

Hi all. I am buying 3 year old used car from a BMW dealer. They are offering me BMW Shortfall insurance but have not yet mentioned cost.

Has anybody had experience of this and if so what are the average costs and are there any potential drawbacks eg would I get as good value from an independent insurer?  

I got offered this when I bought both my E60's from a main dealer.

I refused it the second time as my insurance company actually paid out more than I paid for the first E60 after it got stolen with the keys from a BMW dealer in Glasgow.

Did they offer you tyre insurance also?

The shortfall was quite expensive about £600 I think which would have been the same price as getting a tracker fitted.

I'm sure I asked that question on here, might be worth doing a search.  One thing that someone did say was "you can pay for insurance for everything provided you want to pay for it"

Andrew

I think it was for 4 years as I plan to keep this one i.e. by not taking it to this dealer

But bearing in mind a car like my E60 will depreciate probably quicker than say an equivalent age E60 525i SE.  No body wants big engined machines.  Mine new, with the toys, would have been close to £45k! I paid about a third of that.  Enough to make your eyes water.  I shudder to think what mine is worth now....7 months on...... But I'm more than happy with it and do not plan on getting rid of it no matter what the government and the tree huggers do!

Andrew