Gap Insurance

molly_the_cat

Hello
For the last 2 occasions my dad has gotten finance out for me on cars. Each time I have taken the gap insurance out. I have never claimed up until now. My husband had an accident and the car is a right off. When my dad phoned the finance company they said that my dad should of been named on our insurance and because we have not done it the gap policy is invalid. The sales person never told me I neded to do this on any of the occasions I have brought a car, we used the same sales man. I now have to find £1300 to clear the finanace off. I paid £238 for this service. Is there anything I can do.

freddie65

Did you buy from a dealer that is authorised and registered with the FSA?

You need to contact the dealer and tell them that you are planning to lodge a complaint with the Financial Services Authority.

In order to sell/advise you on any insurance related products inc. GAP, the salesperson must be accredited to do so by the FSA or act as an Authorised Representative of another Company that is FSA Authorised.

The salesperson has failed to provide you with the correct advice, as you should have been informed that the gap insurance policy must be registered to the same person that is insuring the motor vehicle.

I would suggest that you approach the dealer and give them the opportunity to pay the shortfall first. Believe you me, they do not want a complaint lodged against them, as this could well trigger an FSA audit of their business.

Hope you get a result!

daveyjp

Time to get the paperwork out and I suspect read it for the first time.

Does the GAP policy state the person buying the policy must either be the registered keeper or insured to drive the vehicle?

"The salesperson has failed to provide you with the correct advice, as you should have been informed that the gap insurance policy must be registered to the same person that is insuring the motor vehicle."

There is no proof that the salesperson has failed to provide advice and I suspect the buyer was informed, but by document and not verbally.

Sales staff don't have to go through every clause of the policy. They have to give you the opportunity to read all the information provided. At some point someone will have signed to say they have either declined the insurances offered or they have accepted after reading and understanding all the terms and conditions. You also get a cooling off period to cancel the insurance if you later read it and decide it is not for you.

If this process has been gone through you may have a fight on your hands.

I have recently changed my car and spent longer signing off the FSA paperwork than I did buying the car and I didn't take out any of their insurances.