Mis sold GAP insurance on pcp finance

Bulldoglady

My daughter in laws car was declared a write off after a tree fell on it during the storms a few weeks back. It was purchased with a pcp agreement and her insurance policy had something called a GAP clause added which should have paid off her deposit and covered the cost of the difference of the price of the car taking into account its depreciation. But when she tried to claim this with the insurers they told her that although they put GAP insurance on the policy as a heading, because they have other things like key cover etc therefore the GAP doesn’t apply. 

I’m sure that is mis selling and misleading or at worst fraud. My argument is if they had no intention of implementing this action they shouldn’t have used it as a ‘heading’ but I don’t know how to go about disputing it. Would I need a no win no fee solicitor? If so where do I go to find one? She has lost everything and now has to start from scratch again,  having to buy a used car and just feels cheated at the injustice of it all. Can anyone help?

Thanks

Keep_pedalling

GAP insurance is never included in a car insurance policy, it is something you need to take out seperately. 

What exactly does this so called GAP clause say?

daveyjp

If she didn't buy GAP insurance and signed paperwork to refuse it, which many dealers now expect you to do when taking a car on finance, she doesn't have GAP insurance.

Ayr_Rage

You've no comeback against anyone, your daughter in law should've checked exactly what she had signed up for at the time of purchase.

dunstonh

But when she tried to claim this with the insurers they told her that although they put GAP insurance on the policy as a heading, because they have other things like key cover etc therefore the GAP doesn’t apply. 

Is this document from the insurer or from the dealer?

I’m sure that is mis selling and misleading or at worst fraud. 

Nothing you have said suggests any of those things.  Its more likely you are misunderstanding the document.

Take home insurance, for example, the generic documentation will cover the things offered by all options in the policy type.  However, it doesn't mean that the policyholder selected all the options.   The personalised policy schedule confirms that.

The same applies with motor insurance purchased via dealers.   They will have something that shows all the options and then the ones that were selected.

My argument is if they had no intention of implementing this action they shouldn’t have used it as a ‘heading’ but I don’t know how to go about disputing it.

There would normally be a heading for each type available.  e.g. tyre, key, GAP etc.

What personalised documentation does your daughter have that states she has GAP insurance?     e.g. personalised policy document or the invoice for the vehicle (the invoice would show any anxillery purchases such as GAP)

She has lost everything

That would also be incorrect.  The car insurance would still pay out. 

Bulldoglady

Thanks for all your comments guys, really helpful 👍 I’ll pass these recommendations on - that she needs to go back and get clarification - and if it is the case she didn’t actually sign for it then it’s a lesson learned.

MyRealNameToo

Bulldoglady said:

Thanks for all your comments guys, really helpful 👍 I’ll pass these recommendations on - that she needs to go back and get clarification - and if it is the case she didn’t actually sign for it then it’s a lesson learned.

As others have said, it's unclear what document you are talking about. 

I have spoken about doing so to two previous clients who wanted to bundle GAP insurance with Motor but I recommended they did something, in practice I have never actually seen anyone do it in real life. As such I am guessing it's something the dealer gave her as many do try to sell GAP and other ancillary insurances on each car they sell.

General recommendation on sites like this is to turn them all down because the products can be bought much cheaper elsewhere. Historically when I worked for a firm providing GAP insurance to car dealers they would charge 4x or more than the wholesale price and obviously the wholesale price is what covering all the claims. 

When did she buy the car? A while back almost all GAP sellers were asked to stop selling policies by the FCA due to concerns of value for money. If it was relatively recently it may have been when you couldn't buy GAP even if you wanted to. 

Would really need to see the document in question but also the other docs (anonymised) to see if its misleading, sloppy, misunderstanding etc