Think I have been ripped off with Gap insurance- can someone confirm my thoughts?

numpty2009

Hi

I have just bought a lovely brand new car from a very established main dealer in the midlands (they have a large number of dealerships).. Anyway I wanted GAP insurance as the car is on PCP agreement- however, I had intended to buy it off the internet although hadn't actually researched this yet!

Anyway I think I have been taken for a plank- the car salesman offered it to me for £399 I said no, I 'll get it from elsewhere- he said Oh no you can't do that only dealers are allowed to sell it... Like a plank I believed him (although I had my doubts)..

I have now searched the internet and low and behold you can buy gap insurance... for 1/4 of the price...

can someone just confirm that I have been conned before I go in all guns blazing tomorrow! not impressed!

vikingaero

You believed a salesman?! If a salesman tells me it is raining outside I'd go out and check!

deltic_2

The salesmans comments sound like a case of financial mis-selling to me.

Consult the FSA about this. You should have grounds to ask for a refund.

vikingaero

If you've just bought the car recently then their may be a 14 day cooling off period so check any documents that you have been given.

in2deep_2

GAP insurance is very useful but not at that price.!!!

harveybobbles

GAP is normally the same as one months payment...

AdrianHi

You can buy GAP insurance anywhere you like and you can cancel the policy inside the 14 day cooling period with no penalty.
That said, in my opinion GAP insurance is always a bit of a con, or at best poor value for money. Here is why. GAP insurance is cover for the 3 years of your PCP agreement, if your car is written off in the first year your regular insurance will pay up original invoice price anyway. GAP insurance then only pays up the difference between the outstanding finance and the current market value of the car which only pays at all if there is negative equity. I think there are a large number of mis-selling cases with GAP insurance, if you pay a large deposit and then finance say 20% of the value of the car there will never be a time when you can be in negative equity yet car salesmen will still sell you GAP insurance when it can never pay up for you. My mother paid cash for here car nearly 3 years ago and they tried to sell her GAP insurance. Criminals frankly.

Return To Invoice (RTI ) insurance is a much better idea and not much different in price to GAP. This is worth having on something like a PCP or balance lease plan deals, it will pay up original invoice value inside the period insured. I'd say cancel the GAP insurance and get some RTI insurance.