Tell - your advice is just plain poor, and based on your own - seemingly apparent - capital wealth, which you mention on every possible occasion you can. For one that doesn't impress me ! There will be many people in here who, whether PCP'ing a car (which you seem to regard as the poor man's option) or buying it outright, will still value protection to cover a gap between the cost and a write off value. In neither case is it MANDATORY, so finance funding has nothing directly to do with it; it's about risk mitigation to the 'owner' - which in this case we'll include anyone who has a finance deal. I don't believe either "category" of person values it more than another, it is a value judgement for each individual - yourself too, so you're entitled to your opinion on it.Tell said:I didn't since I decided it was a scam. I've already taken the hit on the value so not bothered about getting it back. It's your utility value function for a gamble. If you want to protect your capital on the car by spending more then fine but if you think you got enough capital to cover eventualities then don't bother. It's a bit like pet insurance, cheaper it you don't take it out since this is how businesses make money. Like the government never insures anything since it has enough dosh to pay out.
It's like Paul said at the top, those who want to make sure they aren't loosing capital because they are on a PCP plan and have a accident may value it more than a person who buys the car outright who is more flush with capital. If you accept that you have taken a hit on the value by buying a car new and anything that might happen to it in the short term and can afford it then you might not bother. I regard it as a fangled insurance to eek more money out of people. Why wasn't it used in the past and why do you need it now. Use of finance now is the answer.
Agreed, Rob !Rob said:There is a forum discount here if that helps; http://www.atecaforums.co.uk/viewtopic.php?f=6&t=164
Like most insurance, it offers peace of mind should the worse happen. Yes many people may not need to claim but I like to think that in three years time if my car was written off I would be able to go out and buy a new one again.
Hi graham, do you mind telling me which company you used that paid out? It seems like a minefield choosing a reputable provider.Grahamn said:For the premium paid typically £100-£160 you can insure a gap that could be significant - several £1,000's
Even if you have limitless capital, I would suggest the cost of up to a couple of hundred to insure a loss of £1,000s over say 3 years is a reasonable cost. That's a personal decision of course.
What it isn't, is a scam.
Do they pay out? Yes they do - I've been unfortunate enough to need it.
The gap insured paid just shy of £10k (difference between residual and invoice)
I wouldn't want to lose £10k.
The premium ? A single premium of £155 for three years back to invoice.
These are facts, not fiction. It's not just for finance deals as mcderms pointed out in his reply.