Quote:
Originally Posted by silverbmwz3
I don't know why people bother with shortfall insurance, just get a policy that gives you a new car + extras in first year if you have a write-off/its nicked. In 2nd year, who cares - you had a 2 year old car, they give you the money for market value of a 2 year old car and you go out and buy a 2 year old car. ?????
As far as I'm concerned its designed to make you BETTER off than you were in the event of an accident/theft. In that case you may as well go out and buy several hundred quids worth of lottery tickets, there's a bigger prize and probably just as much odds that you'll actually use it (ok perhaps that's a bit of an exageration).
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I agree though it depends on personal cirucmstance and acceptance of risk. In the first year it's pretty much a complete waste of time as your insurers would replace the car with new. All it covers is your excess (policy provider dependant). In later years it is a little more meaningful.
If you're tied into something like a PCP and effectively don't have any equity in the car then you could get into the situation of having the car witten off, and getting nothing back. In this case you could argue that it would at least get you back into a car.
What it is more like is a lottery ticket for the third and fourth years in case the worst happens. Clearly if you change every couple of years it's a complete waste. If you change less frequently, then maybe you accept the price as safeguard against the risk. It's all personal choice.