What Car Q&A - Should I take out GAP insurance?

Q: I purchased an 06-plate VW Golf TDI for £16,500 on 'Solutions', (VW's finance deal). The dealer is offering GAP cover against theft and write-off for £299. Do you think this additional policy is worth it?
Mark Paine

A: If a car you are buying on finance is written off in an accident, your insurance may cover the cost of the car itself, but not the interest and charges you would have paid the lender over the term of the loan. GAP (guaranteed asset protection) insurance covers this shortfall.

It will add to your monthly outgoings, but could be worth it in the long run for peace of mind.

You're not obliged to buy the product from the company financing the car purchase, however, so it's worth shopping around for a better deal. A stand-alone product from a company such as www.click4gap.co.uk may work out cheaper.