has anyone tried reclaiming GAP insurance

gaz_d_2

Last year I bough a £23k Vauxhall Insigna brand new from Vauxhall, I paid a lump sum and part ex'd a car leaving me with a balance of £13763 on a intrest free loan, the salesman talked me into getting gap insurance to cover any shortfall if the car was written off.

Today i've recieved a statement saying I owe £9558.

It's just dawned on me that due to the amount the car is worth (£14k+) and the amount i'm paying (£380) that the value I owe will always be less than the value of the car so will never payout at any point during the loan.:mad:

Any advise will be gratefully recieved.

di3004

gaz_d wrote: »

Last year I bough a £23k Vauxhall Insigna brand new from Vauxhall, I paid a lump sum and part ex'd a car leaving me with a balance of £13763 on a intrest free loan, the salesman talked me into getting gap insurance to cover any shortfall if the car was written off.

Today i've recieved a statement saying I owe £9558.

It's just dawned on me that due to the amount the car is worth (£14k+) and the amount i'm paying (£380) that the value I owe will always be less than the value of the car so will never payout at any point during the loan.:mad:

Any advise will be gratefully recieved.

Hi there

If they pressurised you into taking this out, and also did not explain the full cost of this cover then I do believe you have good reason to try to make a reclaim.

Its costly isn't it?

So whoever set this up and sold this policy to you is the ones you pursue.
You can do this by completing the FOS questionnaire, instead of writing a letter, of course you can write a cover letter of your own if you want to as well, to enclose with the questionnaire.

These questionnaires were recently issued by the Financial ombudsman service (FOS) to use to send to the ones your complaining to, remember to keep a copy as well, they have 8 weeks in full to give a decision, and some will request for extra time.

You will find this questionnaire on the link below, further down the page as Stage one of reclaiming.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Post by recorded delivery for your proof of posting.
Hope this helps, good luck and please keep us posted.;)

mystery_united

gaz

I have taken out GAP insurance and subsequently had to claim on it a few years back. Unless your policy is different

My understanding of it is that you pay for the insurance upfront (around £400 when i took it out) and it lasts for three years.

If you are unfortunate enough to have your car written off in that time, the car insurance company will only pay you what the value of the vehicle is at that time. The GAP insurance then pays out on the difference between what the car was purchased at (£23k in your case) and what your car insurance company has paid you.

GAP insurance can be purchased online upto 3 months after you have purchased your car, Car dealers obviously benefit from selling you the insurance just like they do for selling you an extended warranty.

Hope this helps...