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+1 re GAP. Less own issue if you're a cash buyer as you don't have the possible negative equity situation. However you'd be royally pished off if you shelled it all the cash, it got nicked and you got back far less.
Keep in mind most insurance policies have a new for old clause for new cars (ie you are the first owner so that rules up pre reg cars) and you have 6 months normally to buy GAP from date of purchase. But for the sake of £125-200 I'd rather have the piece of mind.
Used ala.co.uk and got a good price and also was able to swap the car on the policy when I swapped out after 12 months. Good service so I'd recommend them.
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