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Hi
Soon to take delivery of a new lease car. Never leased before and seen talk of GAP insurance. It's a two year lease with a grand upfront and £185/month. Am I safer to take this extra insurance out or as its only a two year lease the normal insurance would cover the cost (VWFS's cost) of the car?
Check your motor insurance offers new-for-old in the first 12 months, some do.
You'd need to see the expected depreciation curve of your car in year 2 to understand if GAP was worth it, but the risk seems quite small to me.
It's a low risk but big impact i.e. you're unlikely to write-off the car but if you do, the Lease Co. will want the full invoice value of the car.
If your car insurance policy has new for old, great. If not, then gap insurance covers you.
Also consider that a total-loss will leave you car-less. There are Gap policies that not only pay the difference between the car insurance payout and invoice value but will also give you a cash payout to fund the upfront payment on a replacement lease.
Expect to pay around £100 for a policy on a ~£25k car from a third party.