Gap insurance

Sloanranger

Hi, I bought a used car in 2014 and was going to use the dealership to finance the sale but because I would'n't be driving the car (I don't drive) they could'n't/would'n't do the finance and so I financed it through The Black Horse Bank (Lloyds). On recently checking my policy it appears I am paying £7.86 per month gap insurance. I don't recall being asked about wanting or needing this. I rang the bank who said I need to get in touch with the dealership as it's their responsibility. My question is this, if the dealer was'n't responsible for financing the loan should'n't they have cancelled the gap insurance I apparently agreed to buy

[Deleted User]

If you want to cancel it, you would do that yourself, rather than the dealer.

However, gap insurance is generally a sensible purchase.

[Deleted User]

Sloanranger wrote: »

I don't recall being asked about wanting or needing this.

That's not a complaint reason unless the insurance was added without your knowledge or agreement. I doubt very much documentation from so recently will do anything other than show you both agreed (and signed for it) two years ago. Don't you have any paperwork to check?

Do you even realise what GAP insurance is? It's a very useful insurance which you will find hard to argue was something you do not need. It's often a condition of the loan and (if it was) you won't now be able to cancel it and a refund will be out of the question.

Nasqueron

When you buy a car on finance, having gap insurance is a very good idea, the only thing is to buy it independently, not through the garage as their policies are rarely good value. If the policy was included in your finance (and you paid interest on it) you could have a complaint but it sounds like it's a monthly thing.

Also, you don't remember agreeing to have it, but I can assure you that you did. It's a standalone policy that isn't done through the finance company so different set of forms and they agree it with you before the finance is done and you have to sign the agreement to say you wanted it (and that you read the terms and conditions). As it was done in 2014 and finance is active you can bet your last pound they still have all the paperwork proving you agreed to it.

Sloanranger

Ok.i get what your saying but if I had a claim who would I claim from. The bank or the dealership?

Nasqueron

Sloanranger wrote: »

Ok.i get what your saying but if I had a claim who would I claim from. The bank or the dealership?

Do you mean you need to claim on the gap insurance i.e. your car has been stolen or written off? If so, you speak to the gap insurers.

If you mean you want to complain the policy was miss-sold, you need to speak to the garage, send them a complaint letter with proof of posting (free from the post office) and they then have 8 weeks to examine it and reply. As above though, you won't get anywhere with a complaint you didn't agree to it as they will just provide a copy of your signed agreement so look for better complaint reasons.

Also as it's in 2014 you would have received all the documentation detailing how to cancel in the cooling off period and could have done it at the time which may be an issue going forward as you've had 2-3 years cover already

Sloanranger

Is there a template letter on the site I could use please

Nasqueron

Sloanranger wrote: »

Is there a template letter on the site I could use please

No because there isn't a general problem with GAP insurance like there was with PPI, you just need to write to the dealer and say you wish to complain about the GAP insurance, list your reasons and outline the evidence you feel is important and mark the envelope as a complaint and get the free proof of posting.

You should be able to adapt one of the PPI complaint letters given it's insurance related or use a generic insurance complaint letter like below

https://www.moneyadviceservice.org.uk/en/articles/letter-templates

[Deleted User]

My advice is not to waste any more time with this; documentation from recent finance makes PPI style "complaints" impossible for useful insurance like this.

Sloanranger wrote: »

Ok.i get what your saying but if I had a claim who would I claim from.

I don't think you do "get" what has been said. You really do not have a valid complaint.

Sloanranger

My original post stated that I don't recall being asked if I wanted that kind of insurance. If ppi was mis sold to people why not gap insurance. The paperwork states that I am paying £7.86 per month insurance. If I had known what it was for I would not have needed to ask the bank

[Deleted User]

Sloanranger wrote: »

If ppi was mis sold to people why not gap insurance.

Indeed.
Or Home Contents Insurance, Motor Insurance, Life insurance etc.

It can all be mis-sold, but you have to show that it was in order for it to be refunded to you.

You really do not have a valid complaint simply complaining that you've forgotten agreeing to it and didn't (don't) know what it is for....