GAP Insurance Problems

chadlar

Missold GAP

On the advice of others i have started a new thread, with some extra details:

I have recently had an accident which rendered my vehicle a total write off. My mother purchased the car for me and with it purchased GAP insurance from a registered ford dealer. At the time of sale the V5 log book was completed with my details and the sales details were completed with my mothers details, including the sale of the GAP as that was on the invoice. Now since registering my claim with the GAP insurers they are saying that as my mother was not the registered keeper and the car was not insured by her they may not pay out. This is really stressing me out as it has taken over a month since registering the claim for them to come back to me with this information, and in that time i have had to purchase a replacement car on finance, less the motor insurance payout i had, (due to public transport travel not being a cheap alternative) with the confidence that this was all going to be covered. Does anyone think i have a case for the misselling of insurance, if this all falls through, as the sales person completed the paperwork knowing full well that my mother was not going to be the registered keeper or on the insurance? Who would i also put the complaint to, the GAP insurance company or the dealership? Is it worth reporting to a governing body like the OFT/FSA?

Extra Info: I did not live with my mother at the time of purchase, but she has been staying with me for the past year as she has just gone through a divorce.
The car was originally purchased on finance but not HP, subsequently a few months later i settled it including the GAP (which was included in the finance figure).
On the invoice they have my mothers name, but my home address at the time of purchase.
It was bought through the registered Ford Dealer 'Gowrings Ford', who are on the FSA register as an 'Appointed Representative'.

Your help is much appreciated.

BJV

Contact your dealership.

The loan was a personal loan so the rules of accommodation deals do not apply. Nothing wrong here. Your mum took out a personal loan what she did with that money is up to her.

But and it is a big but your dealership will have completed a needs and demands and must have understood who was paying and how the car was being registered.

So they must have known that you would not be complying with the insurance companies terms and conditions.

BJV

The fact that they are an appointed representative is nothing bad in itself. It just means that ITC are responsible for the FSA regulatory requirements and training.

chadlar

So i will probably have to wait then and see whether the GAP company pays out.

If they dont then i guess i have to complain to the dealership and request that they cover the shortfall.

In your honest opinion/experience, what do the chances look like of:

• the insurance company paying out?
• getting the dealership to cover the shortfall?

I assume i will have to make a complaint to the FSA if this all falls through?

BJV

Sorry 50 % for the insurance company. In theory they could simply say so sorry the policy is not in your name and has nothing to do with you. You where given terms and conditions and than time to read through them and cancel if needs be.

The only hope is that they pay from good will as they are within their rights not too.

But and again it is a big but your dealership. Mmmm not good it seams as though they where aware of how the car was going to be registered and how it was going to be invoiced. So simply out they sold you a policy and made profit from it knowing that should you ever need to make a claim that you would not be able to claim or at best would have major problems.

I would contact your dealership right away. I totally understand that this is difficult and it must be very stressful but don't go into the showroom all guns blazing. instead write a letter. Simply stating the facts and ask for a response.

As this complaint is about how they have sold a regulated policy also send a copy to ITC compliance and let the dealership know that you have done so. They will have a set time period in which they have to respond. If you are not happy with their response you may have the right to refer the matter to the ombudsman.

After all they told you are gap insurance, showed you how it could affect you and then sold you a policy which you would never be able to benefit from because of how the car was registered and who was invoice made payable to.

Had they at this time explained the situation perhaps you would of been able to find alternative cover which would never of left you in this position.

Good luck let me know how you get on.

chadlar

BJV wrote: »

Sorry 50 % for the insurance company. In theory they could simply say so sorry the policy is not in your name and has nothing to do with you. You where given terms and conditions and than time to read through them and cancel if needs be.

The only hope is that they pay from good will as they are within their rights not too.

But and again it is a big but your dealership. Mmmm not good it seams as though they where aware of how the car was going to be registered and how it was going to be invoiced. So simply out they sold you a policy and made profit from it knowing that should you ever need to make a claim that you would not be able to claim or at best would have major problems.

I would contact your dealership right away. I totally understand that this is difficult and it must be very stressful but don't go into the showroom all guns blazing. instead write a letter. Simply stating the facts and ask for a response.

As this complaint is about how they have sold a regulated policy also send a copy to ITC compliance and let the dealership know that you have done so. They will have a set time period in which they have to respond. If you are not happy with their response you may have the right to refer the matter to the ombudsman.

After all they told you are gap insurance, showed you how it could affect you and then sold you a policy which you would never be able to benefit from because of how the car was registered and who was invoice made payable to.

Had they at this time explained the situation perhaps you would of been able to find alternative cover which would never of left you in this position.

Good luck let me know how you get on.

Thank you for your good advice. My mother is the one officially logging the claim with the GAP insurers, like as you said, the insurance was in her name, so i thought it best for it to intitially come from her.

I'm going to remain optimistic in the hope that its all just seen as an oversight and the insurance will pay out as it seems that there are only discrepancies with the admin side of things.

They said i should have heard from them with a decision at the end of last week, so i will wait until the end of this week before chasing them again. I will definately let you know how it goes.

BJV

Good luck keep in touch and let us know what happens. Shame really as gap insurance can and does save a lot of problems. In your case though it is double tough as you wanted to protect yourself and now there are problems because of how you dealership registered the policy.

oscarward

Hmmm Very interested in this.

We purchased a car for our son's 21st which included GAP insurance. We told the salesman that we wanted the car registered to our son but they registered it to my wife as the purchaser even though the money came from my account. They got it changed to our son no problem so acknowledged they got it wrong.

Just asked the garage to investigate what and who etc...

oscarward

Just read the t&c for our case, doesn't mention anywhere about registered keeper not being proposer. Main exclusion is just needs to have comp ins and not being driven illegally etc.

We're with Santander, who are you with?

dacouch

oscarward wrote: »

Just read the t&c for our case, doesn't mention anywhere about registered keeper not being proposer. Main exclusion is just needs to have comp ins and not being driven illegally etc.

We're with Santander, who are you with?

The t & cs will apply to the policyholder which I assume is you wife...

BJV

oscarward wrote: »

Just read the t&c for our case, doesn't mention anywhere about registered keeper not being proposer. Main exclusion is just needs to have comp ins and not being driven illegally etc.

Think that the problem here is that the policy the OP has this this as a term and condition. Sounds like for what ever reason the policy was registered in the wrong name.

The garage may have been able to change the name before ( really can not say) but it is doubt-full that they will be able to do it now as a claim has been initiated.

I have just tried to see your policy online but I can only find bits of it. It keeps referring to a full list of terms in section four but there is no section 4.

Just out of interest did the garage change the name on the V5 or the gap insurance?