GAP Insurance for new car

tinkle

Hi

Can anybody tell me if GAP insurance MUST be offered by law when purchasing a car on finance?

Thanks

McKneff

I wouldnt thing that it is legally required because it is an optional extra.

tinkle

Thanks

I have been told by a friend, when they bought their car, the salesman said 'by law I must offer you this'

I recently bought a car and was not offered it, so was just wanting to clarify.

Thanks

daveyjp

Its an insurance sold by dealers so must be sold under FSA guidelines. They usually use this as a reason to offer it.

They do need to cover themselves though. If you take delivery of a car on finance then a few years later your car is written off and you weren't aware you could insure a financial shortfall you could have a claim against the dealer.

tinkle

daveyjp wrote: »

Its an insurance sold by dealers so must be sold under FSA guidelines. They usually use this as a reason to offer it.

They do need to cover themselves though. If you take delivery of a car on finance then a few years later your car is written off and you weren't aware you could insure a financial shortfall you could have a claim against the dealer.

Thanks, I wasn't offered and it wasn't mentioned at all when I purchased the car, so just wanted to check on here before phoning the car dealer and being fobbed off! Seems odd the would not offer it, if that could leave them open to a claim at a later date.

colino

Because of the FSA recent enforcements, many good reputable garages have retrained their staff and issued aide memoires to sales staff to make sure they ask the appropriate questions (no point getting sickness protection for example if you have a chronic problem) and tailor the add ons and insurance to be most appropriate for the customer. Unfortunately some newer and weaker sales staff seem to think this is a legal requirement and might even help a sale. It isn't and it doesn't.
Please don't confuse what GAP is there for though, it is one of many insurance products that need researched and can often be bought off the net cheaper to cover your asset.

Credit_Crunched_2

The FSA require all motor dealers to determine whether there is a need for any insurances relating to a car sale. This can be GAP, extended warranties, 7 day drive away cover etc. This is normally done by a series of questions aimed at the purchaser of the vehicle.
If there is a need, they are obliged to offer the cover, however it goes without saying that you do not need to take out the cover.

The FSA heavily regulate the motor industry in relation insurance sales.

luci

Before you go chasing the dealer to sell you Gap insurance, which they will be delighted to do as they have a high mark-up on it, get quotes online and check the cover provided as it is likely to be much cheaper online.

Companies to try are Car2Cover, who don't have Glass or market value limitations, ALA, Autotrader. Google will find some more.

I sent Car2Cover several emails with questions and they were very helpful.

BJV

Sounds like the sales person was stretching the truth a little.

As it is a duty of care ( not to mention a huge profit opportunity for them ) not a legal requirement to talk to you about gap insurance.

A dealership does not have to be FSA regulated to be able to sell cars, they just have to regulated in some way to sell gap insurance or insurance backed policies.

Just do your research, Google gap insurance get some quotes.Which money have just done an article on this and it explains it better than me.