Have I been mis-sold GAP Insurance?

Holyhead

I've been looking through my paperwork for a new Peugeot 206 we bought in 2005. I can remember being told I had to take an insurance out for the new car and that we didnt have a choice so I thought id look back at what this was.

The insurance in question was part of the credit agreement which was explained to us only after we agreed to have the car. We had 2 choices: GAP insurance of VRI (vehicle replacement insurance) We were told that we had to take one of these options.

At no point were we asked if we needed it. We were not asked if we had savings that could cover such a shortfall in a write-off etc. We were not informed we coud purchase this from other companies. Basically because we were told we had to have one and the lack of questions makes me wonder if we were missold this. As this was 7 years ago and we were much younger and probably were a bit naive I wonder if they basically mis-sold us it?

What do people think?

forgotmyname

Maybe but 7 years ago maybe rather late.

What proof do you have that they said you MUST take out one policy or the other?

They didnt tell you that you could buy it elsewhere. I guess there were lots of things he didnt tell you. But did he also mention beans were cheaper in ASDA and not to buy them in Tesco that day?
Nope because shopping around is your job not his.

I think youve left it too late to do anything about it and have no proof.

Time to move on me thinks.

McKneff

eeeh, deary me...................

opinions4u

Sounds like it was mis-sold in much the same way many PPI policies were mis-sold.

I'd hazard a guess that car sellers are much worse than banks when it comes to disclosure and fact finding prior to selling insurance and finance.

But there is less of an industry built around this kind of mis-sale because it's easier to hit a handful of banks than it is to sort out thousands of car dealers.

Complain. See what happens. Report back.

Holyhead

Cheers for all the responses. It was just really the fact that having seen all this business about misselling PPI I remembered this happening and not been given a choice about it. We were basically handed a form (which I have) which had 2 choices, GAP Insurance and VRI insurance and being told to take the VRI insurance (the higher priced one typically) and that was that. You had to choose one. I remember it because I was younger at the time and miffed I had to pay more money. If its too late its too late I've just read a few things on here and thought to myself 'I bet the dealership got away with that with us'

dacouch

opinions4u wrote: »

Sounds like it was mis-sold in much the same way many PPI policies were mis-sold.

I'd hazard a guess that car sellers are much worse than banks when it comes to disclosure and fact finding prior to selling insurance and finance.

But there is less of an industry built around this kind of mis-sale because it's easier to hit a handful of banks than it is to sort out thousands of car dealers.

Complain. See what happens. Report back.

Part of the problem with miss selling of PPI is a significant percentage of people could never have claimed on it eg self employed and certain people with existing medical conditions.

With Vehicle Replacement Insurance (VRI) literally anybody who buys it can claim on it.

I think the OP would need to demonstrate that they were told the VRI was not optional etc.

BJV

Totally agree PPI and Gap insurance are totally different.

You could contact your dealership as they have to keep paperwork to prove that the correct sales track was followed. I don't think that they are legally obliged to keep it for 7 seven but it is worth a try.

The problem with gap insurance is that it is all about the risk of your vehicle being written off. While the risk is not that high the financial ramifications can be devastating.

I once worked for a car manufacturer who offered gap insurance and I remember a case I had to look into where a lady had bought a very expensive car and then not long after it had been stolen.

She wanted to sue the garage for not offering gap insurance. Claimed she had not been given the opportunity and that we where therefore liable.

It was only when we provided copies of everything but a letter from the pope with her signature on it saying that she did not want gap insurance that her "no win no fee" solicitors dropped the case.

Not suggesting that this is always the case it can happen the other way round.