My dealer has given me details of Asset Protector insurance (Gap Insurance by another name). For a once off £500 premium they will give you the difference between the normal insurance company value and what you paid for the car up to a maximum of £25,000 if it is stolen or in an accident. This enables to replace the car with a new one. The cover lasts three years.

Is it worth it?

Alan

 

If you bought a new WRX from a dealer you would be paying back say £24,000 including interest.

If you drove out of the showroom and wrote it off whilst crossing the road, your insurers would only(*) pay out the "market value" of the vehicle, say £20,000 for a one owner, low miles car.

The finance company would then ask you for the remaining £4,000.

From experience, and for the peace of mind it brings when the worst does happen ... I think it's worth it.

However, if you reckon that the car's market value wil always be more than the outstanding finance, then it's a waste of money.

All depends on your situation.


*A simplistic example that excludes any new-for-old cover on the policy.