Car Finance- Gap Insurance - 0% Credits Cards.

patterdale2000

Good Morning Everyone,

Please can i have some advice, i have just agreed to get a 2nd Hand car on finance paying 9% APR, with the finance i have also paid for gap insurance. I'am wanting to know if i will be able to tranfere the balance onto a 0% Credit Card? But if i did would it affected my gap insurance since i would have no finance on the car but on the card instead.?

Also having read some form's i have noticed that i have been overcharged for gap insurance would i be able to cancel it and take it out again, by myself.



Cheers Patterdale 2000

dacouch

How long ago did you take the gap cover out?

patterdale2000

I pick the car up on Thursday so it hasn't started yet

Cheers Laura

AdrianHi

What does the GAP insurance actually pay out?
Is it RTI (Return To Invoice) which might be worth while?
or is it to cover the shortfall between value of the car and outstanding finance (which is not worth it IMO)?

dacouch

You should get a 14 day cooling off period from the date you took out the policy / received the policy documents. If you are within the period simply advise them you have reviewed the policy and its not suitable (Leave it at that) and do not require it. They should then cancel the GAP without charge. If you ring the dealer they will try and push you into keeping it as they make a lot of commision on it. So if your worried about speaking to the dealer ring the Insurer and advise them you want to cancel under the cooling off period.

As Adrian advised above when you shop around on the tinternet look for a Return to Invoice / Back to Invoice Gap Policy. They cost circa £160ish for a £15000 car

patterdale2000

Hi thanks for that, just one more question when i cancel it will i have to inform the finance company as the gap insurance was just added?

Regards Patterdale 2000

dacouch

In theory the Insurer or Dealer should advise them but it would be an idea to let them know or at the very least check with them after say 10 days to make sure it has been taken off

hopetosave

Hi Patterdale

I think you need to be a little careful here. You need to check what type of GAP insurance you have before doing anything. If you have Finance GAP and settle the finance your GAP policy will end. By moving it to a credit card you are in effect changing it to a personal loan and Finance GAP will not cover a personal loan. If you have Return to Invoice GAP or a dealer combined policy you should be ok.

I would consider using the 14 day cooling off period if you still have time and then starting from scratch.

Hope this helps.