need help or advice on car g a p insurance please

emz88

Hi , I bought a car in 2009 car value 6999.00 , still owed on previous car 2555.00 , I was sold gap insurance 599.00 , and was told that it would cover the shortfall from insurance if the car would be stolen or written off , 3 years later the car was written off unfortunately , by this time the car was wourth 4000.00 , but I still owed 7000.00 on the car , insurance is paying 3500 of with the excess taken out which leaves 3500 left to pay , sent all docs including my final settlement offer which says if I pay early that I would have around 1000.00 off the 7000.00 bill , which leaves 6000.00 owing , but only on an early settlement, just received a letter off the gap saying that I paid 500.00 to much for the car in the first place as per glass's guide, so they would not pay for this , also the excess for the vehicle which is 500.00 , also the 599.00 for the insurance which was taken out via them , and that they will only pay up to the final settlement in total leaving me with a 2599.00 bill left to pay , I then tried to explain that the final settlement would only be at the 6000.00 price if it was paid off in one payment and that they should take that into account and pay the extra money towards the full amount , but they not having of it ,and also the 599.00 for the insurance that I have already paid in 7000.00 over 3 years and some of my payments would have contributed to paying the gap sum , so that some of the 599.00 should be taken off , I just feel I been ripped right off as was told that gap insurance is there to cover the extra cost , and that all I got out of my 599.00 payment for the insurance is 389.00 , so all that they will pay in total is 989.00 , great

InsideInsurance

Please use sentences and paragraphs as that solid block of 347 words in a single sentence is next to impossible to read

What type of GAP insurance is it? Traditional financial GAP? Return to Invoice with Financial?

What does the policy state about the purchase price of the vehicle?

emz88

Hi thanks for reply , sorry about the post , the gap is negative equity , I will have to read through the policy for the rest of the answers regards

BJV

Sorry to hear about your car.

The problem is that most I mean 99.9 % of gap insurance policies will not cover any amount of negative equity that you have brought forward from another loan.

There are specialist types of negative equity cover but it is very doubtful that yours will cover it.

Sorry but it will be very difficult now to prove that the sales person did not tell you about this.

Yes they will have all the paper work that shows you understood your cover and that you wanted it. They will also i suspect try to hide behind the fact that it is all mentioned in your terms and conditions.

You could try to write to them and if you do not have any joy then you could try the ombudsman.

So sorry this is the type of tricks that gives the motor trade and financial services a bad name. In this case it is not the gap insurance companies fault it is your dealership for not pointing out the common exclusion in that it would not have covered this.

It also sounds as thought the policy you bought was limited to a purchase price as defined by a guide price. This is supposed to stop customers from paying too much for their cars.

Just as a second thought how was the finance structured as it would have been difficult to get a finance company to lend all of the amount against a car that was not worth anything like the amount you needed?

Is the loan against the car?
Is the loan a single loan or have the dealership sorted out one loan against the car and then a top up personal loan?