GAP Insurance via Dealership (Can I cancel?)

neo1607

In short, I'm scheduled to pick up a new car next week from a local branch of a relatively large car dealership. The finance quote they provided included a £449 charge for 4 years of GAP Insurance. However, after spending the weekend browsing various online platforms like Click4GAP and ALA, I discovered quotes as low as £149 for Return to Invoice, the same coverage as offered by the dealership.

During my subsequent visit to finalize the finance and test drive the car, I raised the issue of the significantly lower prices from online providers. In response, two sales advisors pressured me, claiming that online companies are often fraudulent, their policies differ significantly, and FCA guidelines prevent them from price matching on insurance policies such as GAP.

Despite knowing this was likely misinformation, after considerable argument, they agreed to include a full tank of fuel and branded floor mats as incentives to purchase their policy. However, they insisted that removing the GAP insurance would require canceling the deal, resubmitting it to underwriters, and potentially delaying the car's delivery by 3-5 days.

My question is whether I have the right to take delivery of the car and then, within the 30-day period, cancel the dealership's GAP insurance to opt for a more affordable option from an online provider

DullGreyGuy

You can cancel the GAP insurance within its cooling off period... you'd need to read your contracts to see if it has a consequence for any other aspect of the deal but it would be unusual for it to do so. 

Policies certainly do differ but that doesn't automatically mean one is better or worse than the other. Certainly look at what they consider the gap as being between... it should be from your Motor insurer's total loss valuation but have seen some poor quality product saying its from their assessment of your vehicles worth and there'd be no prizes for guessing which of the two probably values your car higher.

bluelad1927

Why do you want to get away with a free tank of fuel and mats?

If you don't want the dealers offer do what it takes to reject it now otherwise play ball

Dont rip someone off when theres a good chance you'll require their future services. If in a couple of months there is a minor issue with your car that has to go back to the dealer expect to be firmly bitten on the backside

neo1607

bluelad1927 said:

Why do you want to get away with a free tank of fuel and mats?

If you don't want the dealers offer do what it takes to reject it now otherwise play ball

Dont rip someone off when theres a good chance you'll require their future services. If in a couple of months there is a minor issue with your car that has to go back to the dealer expect to be firmly bitten on the backside

Not attempting to rip the dealer off as such, but when spending £20k on a car it would be common courtesy to offer the customer some free fuel and car mats without it being essentially a bribe to take an additional added extra (GAP), never in the last 15 years have I had to haggle for those as "extra's" normally a dealer would provide them for you in my experience

I'm sure there's other customers that have been in a situation where they have picked up a car then decided they want to cancel GAP afterwards once they have found it cheaper online

400ixl

Are the mats something you will be buying anyway, and in combination with a tank of fuel are they worth £300. If not to either then you would be better off not taking the dealer gap insurance.

Another thing to consider is whether your motor insurance includes new for old cover in the first 12 months of ownership. Many do and means you do not necessarily need gap for the first year.

neo1607

Got this resolved, a quick phone to the dealership to explain I no longer wanted the GAP and to remove it from the finance, turns out it wasn't actually as lengthy as they were quoting me, was done within an hour when initially they were telling me it would stall the deal by a few days