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  • FIRST POST
    • picasso1
    • By picasso1 12th Jan 18, 9:01 PM
    • 3Posts
    • 1Thanks
    picasso1
    Gap Insurance
    • #1
    • 12th Jan 18, 9:01 PM
    Gap Insurance 12th Jan 18 at 9:01 PM
    Hi
    Just bought a nearly new car from Audi today and dealer pushed for taking out gap insurance. I did at £349 for 3 years however when I came home realised it was a silly thing to have done. I wish to cancel the policy but the forms say they will charge a £50 administration cancellation fee. Can they do this ? I am within the 4 days acceptance period.
Page 1
    • Quentin
    • By Quentin 12th Jan 18, 9:15 PM
    • 34,168 Posts
    • 18,116 Thanks
    Quentin
    • #2
    • 12th Jan 18, 9:15 PM
    • #2
    • 12th Jan 18, 9:15 PM
    If you agreed to the ts & cs without reading them who is to blame??
    • csgohan4
    • By csgohan4 13th Jan 18, 8:36 AM
    • 4,143 Posts
    • 2,597 Thanks
    csgohan4
    • #3
    • 13th Jan 18, 8:36 AM
    • #3
    • 13th Jan 18, 8:36 AM
    paid 200+ for 5 years from an online company. Never buy extra things from the dealer unless you compared and researched


    Lets hope the T+C have a cooing off period
    Last edited by csgohan4; 13-01-2018 at 8:41 AM.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • lostinheaven
    • By lostinheaven 13th Jan 18, 8:47 AM
    • 163 Posts
    • 79 Thanks
    lostinheaven
    • #4
    • 13th Jan 18, 8:47 AM
    • #4
    • 13th Jan 18, 8:47 AM
    Hi
    Just bought a nearly new car from Audi today and dealer pushed for taking out gap insurance. I did at £349 for 3 years however when I came home realised it was a silly thing to have done. I wish to cancel the policy but the forms say they will charge a £50 administration cancellation fee. Can they do this ? I am within the 4 days acceptance period.
    Originally posted by picasso1
    Have you already taken delivery of the vehicle?

    Also, define "acceptance period" please? Are you referring to the 4-day rule in which a dealer is not permitted to sell you a GAP insurance policy on the first day that they mention it to you, rather that they have to permit you two-clear days as a minimum to decide if you want to buy it before they can mention it to you again (although you can override this by approaching the dealer yourself on day 2 or 3 to instruct them that you want to buy it)?

    If you are and the dealer didn't follow the rules correctly, there's no way they can enforce a £50 cancellation fee.

    Separately though... every insurance policy sold in the UK comes with a statutory minimum 14-day cooling off period within which you can change your mind. Most GAP insurance providers though, allow a cooling off period of 21 or even 30 days.

    Within the cooling off period you're permitted to cancel the policy and receive a refund. However, the provider is permitted to charge a fee to cover their reasonable administration fees but, almost nobody does charge a fee within the cooling off period.

    Hence, I suspect the £50 cancellation fee you refer to is actually only likely to apply if you're cancelling outside of the of the cooling off period.

    In summary...

    If you've not yet taken delivery of the car but you've agreed (within the initial 4-day rule) to take out GAP insurance with your new car purchase, your GAP insurance policy hasn't actually started yet - it only starts when you take delivery. If it's not yet started, your cooling off period has not yet started either, in which case, you're not cancelling an insurance policy (therefore no cancellation fee can possibly apply) you're simply deciding not to purchase it. Therefore you tell the dealer to jog on.

    If you HAVE taken delivery of the car but are within the initial cooling off period, you'll certainly have a right to cancel the policy and they *may* (though it's incredibly unlikely) charge you administration fee for the cancellation but, if you feel that cancellation fee is so high that you believe you're being "penalised" for cancelling it, you should follow the complaints process within the GAP insurance policy terms and conditions. Within the cooling off period you are not allowed to be "penalised" for cancellation - If you follow the complaints process through, on the grounds that almost no GAP insurance providers charge such fees within the cooling off period, you'll almost certainly get some and probably all of your money back.

    FYI, GAP insurance is available online for far cheaper than you can get it from a motor dealer. I have my own policy with gapinsurance.co.uk and I can cancel my policy at anytime during the policy term without being charged any cancellation fees whatsoever.
    • daveyjp
    • By daveyjp 13th Jan 18, 9:02 AM
    • 7,279 Posts
    • 5,677 Thanks
    daveyjp
    • #5
    • 13th Jan 18, 9:02 AM
    • #5
    • 13th Jan 18, 9:02 AM
    If you need GAP reconsider your purchase completely.
    • EmmyLou30
    • By EmmyLou30 15th Jan 18, 1:02 PM
    • 356 Posts
    • 420 Thanks
    EmmyLou30
    • #6
    • 15th Jan 18, 1:02 PM
    • #6
    • 15th Jan 18, 1:02 PM
    If you need GAP reconsider your purchase completely.
    Originally posted by daveyjp
    Why? Just curious :-)
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