Does hire-purchase GAP insurance count as PPI?

Two9A

I bought a new car recently, and was sold GAP insurance as part of the hire-purchase finance policy. The basics of the policy are: if the car is written off, and is values by the car insurers as having less value than the remaining capital on the loan, the GAP insurance makes up the difference.

However, I'll be settling the loan tomorrow, before even the first payment comes out; it's obvious that I don't need the GAP insurance, and it was mis-sold. Taking into account that the GAP was added onto the hire-purchase agreement and the total loaned out as one amount:

• Does GAP count as payment protection?
• Can I take proceedings to remove the GAP from the hire-purchase policy, and only settle on the balance?

I've already talked to the vendor of the insurance (the car garage), and they're being uncooperative; if there's no further recourse, I'll simply settle the both of them tomorrow and count it as lost money. It's not the ideal solution though, is it?

di3004

Two9A wrote: »

I bought a new car recently, and was sold GAP insurance as part of the hire-purchase finance policy. The basics of the policy are: if the car is written off, and is values by the car insurers as having less value than the remaining capital on the loan, the GAP insurance makes up the difference.


However, I'll be settling the loan tomorrow, before even the first payment comes out; it's obvious that I don't need the GAP insurance, and it was mis-sold. Taking into account that the GAP was added onto the hire-purchase agreement and the total loaned out as one amount:

• Does GAP count as payment protection?
• Can I take proceedings to remove the GAP from the hire-purchase policy, and only settle on the balance?

I've already talked to the vendor of the insurance (the car garage), and they're being uncooperative; if there's no further recourse, I'll simply settle the both of them tomorrow and count it as lost money. It's not the ideal solution though, is it?

Hello there.;)

I believe there are many others on here as well who have dealings with GAP.

If you have the policy document on this, check them as well.
To check what it actually covers for.

Hopefully someone will post up who have dealt or dealing with these with some advice for you.
Otherwise check the threads, I'm sure you will come across something.


Meanwhile link here which is very useful.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

BJV

Gap insurance is totally different from PPI.

Gap insurance is a supplementary insurance that runs alongside your own motor insurance. If your car is written off it pays the difference between your cars price on the day it is written off any either....

The finance settlement - finance gap insurance
Return to invoice - the invoice price you paid
Vehicle replacement - the amount you would need to spend yo buy another vehicle the same age mileage and condition as yours was on the day you drove it home.

If you are lucky enough to be able to pay / clear off the loan they you should consider protecting your car with gap. I would cxl the dealer policy and get one on line for next to nothing. Which have done a review and this should help. http://www.which.co.uk/money/insurance/guides/gap-insurance/return-to-invoice-gap-insurance-review/

BJV

BJV wrote: »

Gap insurance is totally different from PPI.

Gap insurance is a supplementary insurance that runs alongside your own motor insurance. If your car is written off it pays the difference between your cars price on the day it is written off any either....

The finance settlement - finance gap insurance
Return to invoice - the invoice price you paid
Vehicle replacement - the amount you would need to spend yo buy another vehicle the same age mileage and condition as yours was on the day you drove it home.

If you are lucky enough to be able to pay / clear off the loan they you should consider protecting your car with gap. I would cxl the dealer policy and get one on line for next to nothing. Which have done a review and this should help. http://www.which.co.uk/money/insurance/guides/gap-insurance/return-to-invoice-gap-insurance-review/

Sorry forgot to say if you want to cxl your policy you have a minimum of 14 days in which to do it. This is regardless of where you have bought the policy. In this time providing that you have not attempted to make a claim you are entitled to a full refund.