GAP Car Insurance Query

fluffy123

Hi all, just wondering where you think we stand with this.

My partner and myself have been speaking about our finances in recent days and we discussed their car in the meantime. They purchased a car in September 2010 which included GAP insurance. Through the conversation, my partner described how they felt a bit harassed into taking this on to settle the agreement for the car and they were advised that it was something that had to be agreed before completing the outright purchase of the motor car otherwise it wouldn't be able to be purchased at a later date.

Plus, they were advised that it covered the FULL value of the car minus what had already been paid in the event of an incident occurring.

Generally, the whole situation sounds a mess, they were also offered a certain APR loan but then when the forms were handed to them, it was slightly higher....my partner daftly signed up to the increased loan, which they've now cleared with a bank loan but they did overpay for the car which is irritating.

However, the overpayment is by the by and it's more the GAP insurance that we're intrigued about. What do people think? :money:

Stageshoot

If it was purchased through the dealer it was no doubt a lot more expensive than GAP insurance bought direct from a specialist broker, (Probably 50% more expensive, thats the dealers cut)

But I very much doubt you would have any comeback as it was not missold (Albiet sold under pressure), the policy was valid in that it would cover any loss between car value and finace paid etc. So not missold in the way that PPI was to some who would never be able to claim on it. The GAP was a reasonable and appropriate policy,

Your only avenue would be if you had anything in writing that you would not be able to get the car/finance without it as that would be not allowed.

Otherwise it seems all in order.

blacksta

Generally, the whole situation sounds a mess, they were also offered a certain APR loan but then when the forms were handed to them, it was slightly higher....my partner daftly signed up to the increased loan,

Hard lesson learnts -- hope it wont happen again

BJV

When you buy gap insurance directly from the supplier you are buying the car i.e the dealership you will always pay more than if you buy the poly independently as they are legally bound to charge you insurance premium tax at a much higher rate.

Your dealership will also put a lot of financial pressure on the sales person to sell the policy as they make huge profit margins.

That said gap insurance is a supplementary insurance which means that you do not have to have it and as far as I know I have never known a finance house make it a condition of acceptance.

Sounds like it is a bit too late in this case but I hope anyone reading this will remember that you do not have to have gap insurance. No finance house will make it a condition of sale and if you do want it shop around find the level of cover you want and that is right for you, and buy it independently even just to avoid in increase in IPT.

To coin a quote, "hard lesson"

fluffy123

Really? I thought there might have been valid reasons for a claim but I understand.

When they buy the next car, I'll be making sure I'm with them!!

BJV

fluffy123 wrote: »

Really? I thought there might have been valid reasons for a claim but I understand.

When they buy the next car, I'll be making sure I'm with them!!

You could ask the dealership for copies of the documentation they signed. ( not saying that all dealership are like this, most are on the whole ok) as some don't keep all the relevant documents and sometimes forget to cross the i's and dot the t's.

If they can not provide copies you may have grounds.

But if they have got all the documents then it may be difficult as there will be signatures everywhere saying that your partner understood the policy, was happy with terms and conditions and implications, all ok.

It is worth asking?

I would also put it in writing to the insurance company as they will not want their products being forced on anyone. ( Last thing any insurance company wants) esp in today's climate.

If you are not happy where their answer and still feel strongly you may be able to refer the matter to the FOB

Brainerba5

Hi Guys, very new to the forum so please be kind. Has anyone tried to clam back their GAP insurance because they believe its been mis-sold?
I'm a driving instructor and found out, (after buying GAP insurance), that it didn't cover the car if i wasn't in it, eg, on a test with an examiner in the car.

BJV

Brainerba5 wrote: »

Hi Guys, very new to the forum so please be kind. Has anyone tried to clam back their GAP insurance because they believe its been mis-sold?
I'm a driving instructor and found out, (after buying GAP insurance), that it didn't cover the car if i wasn't in it, eg, on a test with an examiner in the car.

I would talk to your dealership.

If you are still within the 14 days cooling off period they they would have to give you a full refund.

If not as part of their duty of care they are required to carry out a needs and demands to establish if you could benefit from the policy. ( I take it they fitted the duel controls as well? or at least knew that you where going to use the car as a driving school) They will need to keep this documentation and will be able to give you a copy.

In this case they have provided and sold a product which you could not benefit from or a least not pointed out any important exclusions which is just as important.

Before you do anything talk to them as no dealership or supplier will ever want to be mentioned in a case of miss selling.

Good luck

Brainerba5

BJV. Thanks for your reply. I'm currently drafting a letter to them. Yes, the were very aware it was a driving school car as they fitted the dual controls for me and tried to sell me advertising livery.
Unfortunately for me I'm 2 years down the road and on my next car before I found out that GAP insurance was not suitable for me, as told by a very "up front" and straight talking car salesman from Citroen.

Here's hoping!