GAP insurance - where is the catch ?

Hammyman

loruok wrote: »

I agreed to this, but after I collected the car last week and studied the documentation, I saw that he had discounted the invoice cost of the car and separately added the cost for the 'free' extras (totalling £900). I was not really happy with this as it devalued the car.

Oh please....

Are you one of those willy wavers who goes around with the receipt going "look what I paid for my car"? No. So it doesn't matter.

The dealer is perfectly entitled to write up an invoice however he wishes as long as the amount it arrives at is the same as you've agreed to pay.

I_luv_cats

Don't get done get Dom featured cases.

There is a problem if your two insurers don't value the car the same and you lose the gap in the middle in monetary terms.

The gap covers you for the difference above what the gap values the vehicle and your loss.


E.g,

Loss 10k to you.


Main insurer gives you 7k in settlement




Gap values your vehicle @ 8k and pays you 2k

You are out of pocket by 1k

Kilty_2

I_luv_cats wrote: »

Don't get done get Dom featured cases.

There is a problem if your two insurers don't value the car the same and you lose the gap in the middle in monetary terms.

The gap covers you for the difference above what the gap values the vehicle and your loss.


E.g,

Loss 10k to you.


Main insurer gives you 7k in settlement

Gap values your vehicle @ 8k and pays you 2k

You are out of pocket by 2k

I thought both cases shown in that programme were a bit unfair on the insurers TBH - had both people done what you always should (#1 put in a claim, #2 argued with their motor insurer about the car's value) there would be no problem

Flyboy152

loruok wrote: »

I have just bought a 3 year old merc from a main dealer. The dealer said that if I paid the full purchase price (£16750), he would throw in GAP insurance + wheel and tyre insurance for free.

I agreed to this, but after I collected the car last week and studied the documentation, I saw that he had discounted the invoice cost of the car and separately added the cost for the 'free' extras (totalling £900). I was not really happy with this as it devalued the car. On reading the policy documents I found that I could cancel the policies within 14 days for a full refund.

I contacted the insurance company and arranged to cancel, and was told that the dealer would reimburse me direct. I then got a irate call from the dealer telling me that if he could not give me a full refund as he would be losing money on the deal. He said that we had agreed the deal and if I did not want the insurances, he would rewrite the sales invoice to show the original full invoice value of the car.

Can he do this? He did also admit that that the dealer did not actually pay the insurer the full amount as shown on the invoice as it included a commission, so maybe he might want to settle with me by paying a lesser amount. Should I agree to this?

Do you think dealers give these away for nothing? Are they not entitled to earn a living?

dacouch

I'm guessing he has sold you "Back to Invoice" gap this basically covers the difference between how much the car insurers pay and the invoice price of the car exclude the extras. So the way he has done it giving the covers for "Free" but in effect charging for them will mean you are £900 down if you did claim on the gap.

He is obliged to refund the insurance premiums if you cancel within 14 days, please make sure you put this in writing and send by recorded delivery as he may try and hang the matter out over the 14 days. Simply send a letter requesting a full refund under the 14 day cooling off period.

You could buy the gap cover for circa £180 and the tyre insurance for about £150 on the internet

If he is funny with you ask him to look up the FSA's "Treating Customers Fairly" rules.

Whether or not he can come back to you for the discount he has given you on the car I'm not sure, it will depend on how it's worded but I suspect he can't