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Gap/Shortfall insurance

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URL: http://www.bavarian-board.co.uk/forum_posts.asp?TID=43394
Printed Date: 11-May-2024 at 07:22


Topic: Gap/Shortfall insurance
Posted By: MikeH
Subject: Gap/Shortfall insurance
Date Posted: 14-December-2008 at 13:50

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?  


Replies:
Posted By: Dergside
Date Posted: 15-December-2008 at 14:28
I don't know the specifics of this policy but as a general rule you buy insurance from a dealer for convenience rather than because its the best value for the insurance type.  Typically the dealer is just an additional link in the supply chain with his hand out for a piece of the pie.

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Now: BMW 523i SE '00, 318i SE - e91 '07, 325i Coupe '93.

Prev:
e46 328i SE Touring, 330Ci, 318Ci.
e39 523i SE.
e36 325i Coupe *2, 323i SE, 316iSE.
e30 325iSE 2dr, 320i Conv, 320i 2dr, 316i.

Posted By: Andrew Rolland
Date Posted: 16-December-2008 at 12:51

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



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Be exclusive and drive a Petrol 5 Series!

Current
'13 62 F10 535i MSport Auto

Previous
'04 04 E60 545i SE Auto
'03 53 E60 545i SE Auto (Stolen)
'98 S E39 523i SE Auto

Posted By: MikeH
Date Posted: 16-December-2008 at 17:19

My thoughts exactly Mr D. My current insurers offer gap cover as part of their policy for a lower premium than BMW (£120). As you say the dealership option is convenient, but at a price.  

Andrew I managed to search out your previous thread, thanks. Your £600 is worse than I expected, it must have been for 4-5 years cover? All will be revealed on Thursday when I meet the Finance Manager, will post the result.

Posted By: Andrew Rolland
Date Posted: 17-December-2008 at 08:51

I think it was for 4 years as I plan to keep this one i.e. by not taking it to http://www.bavarian-board.co.uk/forum_posts.asp?TID=40115&PN=1&TPN=1 - 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



-------------
Be exclusive and drive a Petrol 5 Series!

Current
'13 62 F10 535i MSport Auto

Previous
'04 04 E60 545i SE Auto
'03 53 E60 545i SE Auto (Stolen)
'98 S E39 523i SE Auto

Posted By: MikeH
Date Posted: 17-December-2008 at 18:54

Andrew,

Just looked back at your thread, what a horror story. I shall be extra wary of dealership security in future.

Nice car by the way and great pictures of the V8, it must be thirsty little devil, the tree huggers seem to have lost that little battle for while at least. 

Regards

Mike


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