Gap Insurance Miss Sold?

bromatt

Hi Guys,

I think this is an open and shut case! But am opening it to the masses any-ways!

Wifey bought a car about 3 and half years ago after having a particularly nasty accident involving armed robbers making an escape - we got particularly stung by our insurance over the value of her previous car do decided to opt for the GAP RTI insurance.

Cue current day we are thinking of changing the car and dug out the paperwork to get a settlement value on the finance, and here's the rub....

Finance Term 48 months!
Gap RTI Cover 36 months!

Our Gap cover is 12 months short of the Finance!! Case to answer?

Thanks In advance..

lawstudent

Why didn't you pick an appropriate length of cover yourself? Or read the paperwork?

ppc1

bromatt wrote: »

Hi Guys,

I think this is an open and shut case! But am opening it to the masses any-ways!

Wifey bought a car about 3 and half years ago after having a particularly nasty accident involving armed robbers making an escape - we got particularly stung by our insurance over the value of her previous car do decided to opt for the GAP RTI insurance.

Cue current day we are thinking of changing the car and dug out the paperwork to get a settlement value on the finance, and here's the rub....

Finance Term 48 months!
Gap RTI Cover 36 months!

Our Gap cover is 12 months short of the Finance!! Case to answer?

Thanks In advance..

I think it is unlikely that you will win this. Almost all GAP insurance covers only for 36 months. The reason for this is that after 3 years the risk between what the car was purchased at and the insurance settlement offered (what it is now worth) makes it prohibitive from an insurance perspective. When you purchased the car a sales adviser would have explained what GAP insurance is and how it works. You would have also signed the T&C and it would havestated the premium and period of insurance.

You are well within your rights to complain, however it think it unlikely that you will succeed. This is probabally what you dont want to hear.

-taff

Completely irrelevant to your original question, but I hope you contacted the Criminal Injuries Compensation Authority.

bromatt

lawstudent wrote: »

Why didn't you pick an appropriate length of cover yourself? Or read the paperwork?

I wasn't offered a length of cover with the GAP, it was assumed that it ran concurrently with the finance. As for reading the paperwork, of course I did - that's why I am where I am now.

bromatt

ppc1 wrote: »

I think it is unlikely that you will win this. Almost all GAP insurance covers only for 36 months. The reason for this is that after 3 years the risk between what the car was purchased at and the insurance settlement offered (what it is now worth) makes it prohibitive from an insurance perspective. When you purchased the car a sales adviser would have explained what GAP insurance is and how it works. You would have also signed the T&C and it would havestated the premium and period of insurance.

You are well within your rights to complain, however it think it unlikely that you will succeed. This is probabally what you dont want to hear.

Thanks, I'm taking on board your advice and will do a little more background research.

bromatt

-taff wrote: »

Completely irrelevant to your original question, but I hope you contacted the Criminal Injuries Compensation Authority.

We attempted many sources of compensation for loss and injury, CICA was a no go as they didn't intentionally hit her car, plus driver was never identified (turns out there is honour amongst thieves!). Just to bolster out the story somewhat - we also tried the MIB, but plumbed with the insurer of the stolen vehicle in the end who as a good will payment compensated my wife over injury's..

Buzby

It does run concurrently, but the term stated will always be 2 or 3 years. It cannot have been mis-sold as a 4 year policy would be the exception, not the rule.

In any event, the term would have been disclosed at the inception so the fact you did no query this at the time also works against you. It isn't even mis-buying, as the product isn't available.

BJV

You can buy gap insurance for anything up to 5 years from external sources. The choice about how long and level is yours. So I suppose it depends how long you are thinking of keeping your car for.

The problem is that most gap insurance policies sold by main dealerships are just for three years.

This is because chances are that they will be tied in to a brand or finance house and they will only have access to three year policies.

I hate to say it but you said yourself you "presumed" that it would be for the full term. Sorry would lover to be able to say that there is a case to answer but I can not see how?

By the way really hope your OH is ok what a horrible thing to have to go through.