Gap insurance - guide discussion

Former_MSE_Rosie · 18 December 2015 at 10:35AM

Hi all,

We've written a new Gap Insurance guide and would love your feedback.

How did you find the info? Was it useful? Have you had a good or bad experience when buying gap insurance?

Thanks for your help!

MSE Rosie

Elincolnah · 18 December 2015 at 11:52AM

Could of done with this guide a month ago before my car got written off lol.

We brought a car that was 4 months old, technically not brand new because it was an ex-demo car. We got it on finance, we only had it 5 weeks before it got written off.

We're still in the process of sorting finance and paperwork, but as it stands after our insurance and figures have been paid we have a £200 shortfall. That's because of excess and remaining premium taking £700 off the payment from our insurers.

So we've made a claim on our GAP policy, and as I understand it, it will pay us to the value of our invoice cost. Which should return us with our deposit. Otherwise, yes our finance has been paid off, but we are without a car and out of pocket from our deposit.

After researching a little bit and speaking to some members on here, turns out our insurer is one of a few that don't replace with a new car.

Frozen_up_north · 21 February 2016 at 9:06AM

I was in a car showroom recently and was introduced to a manager who "by law" had to talk me through a GAP insurance sales pitch. He went on to mention their "scuff and dint" cover for a similar price and was asked if I damaged my alloy wheels, as their cover included up to 6 wheel repairs a year for 3 years and £150 towards a wheel replacement if it was beyond repair.

He also mentioned that he had to pass a couple of dozen exams a year, each year, in order to comply with offering GAP insurance.

Another lie was that since last September, you weren't allowed to walk into a car showroom and buy a car without a 2 working day cooling off period... The FCA require that you can't be sold GAP insurance withing 2 days, nothing to do with the actual purchase of the car.

A double glazing saleman couldn't have done a better job of lying. If for no other reason than the "scuff and dint" cover had a list of exclusions, the first on the list being alloy wheels :rotfl:

Remember the ABC rule, accept nothing, believe no one and check everything.

Nearlyold · 21 February 2016 at 12:49PM

Frozen_up_north wrote: »

I was in a car showroom recently and was introduced to a manager who "by law" had to talk me through a GAP insurance sales pitch. He went on to mention their "scuff and dint" cover for a similar price and was asked if I damaged my alloy wheels, as their cover included up to 6 wheel repairs a year for 3 years and £150 towards a wheel replacement if it was beyond repair.

He also mentioned that he had to pass a couple of dozen exams a year, each year, in order to comply with offering GAP insurance.

Another lie was that since last September, you weren't allowed to walk into a car showroom and buy a car without a 2 working day cooling off period... The FCA require that you can't be sold GAP insurance withing 2 days, nothing to do with the actual purchase of the car.

A double glazing saleman couldn't have done a better job of lying. If for no other reason than the "scuff and dint" cover had a list of exclusions, the first on the list being alloy wheels :rotfl:

Remember the ABC rule, accept nothing, believe no one and check everything.

The scuff and dint cover (it covers bodywork) is a separate policy to the tyre and alloy wheel cover so the salesman was trying to sell you two extra policies in addition to the GAP cover.

Actually he almost certainly will be subject to annual testing on his insurance product knowledge (one test for each insurance product they sell) plus finance product knowledge plus insurance and finance compliance, money laundering and data protection - doubt though whether this would come to a couple of dozen tests a year

999nmt · 21 February 2016 at 5:17PM

I've just read through the MSE guide about GAP insurance.
After several hours trawling through the internet, I'm stumped to find the answer I'm looking for.

I've come across the old paperwork from the purchase of my car (used) back in 2010 and apart from the miselling aspect of this, due to the finance not being authorised without it (having being pregnant with 2nd child we felt there was no other option as the need for the car at the time was great.).... the GAP/VRI was INCLUDED in the total amount of credit that was issued to us.

On the pre-contract information sheet, there is clearly an area for GAP insurance in the "Details of Add-on Products" and 0.00% interest rate pa.
Surely this should of been in this box and not in the total cost price?

Could anyone clarify if the GAP should be separate, rather than included in the cost of the car?
I see it that I've paid 5 years interest on a 36 month cover plan and it doesn't add up!

I will be writing to the dealership so any other information would be great. I'm just worried I'm not seeing something that's perfectly acceptable.

Nearlyold · 21 February 2016 at 5:42PM

Did you pay a deposit? Even if you effectively paid cash for the GAP policy it would still show in the Total Amount Payable calculation as would any other extras eg mats that you might have added to the basic price of the car

There may be an area for GAP to be added at 0% if you need to borrow to pay for it (but the dealer does not have to sell it at 0% finance), but it could be your deposit/ part exchange covered the cost of the GAP policy anyway. Have a look at the "Statement of Price" that came with your GAP policy docs that should tell you if you are paying interest on the GAP policy.

Thrupnybit · 21 February 2016 at 11:43PM

Hmm. Very pertinent. Looking at a car on Saturday we were quoted an overall price which included GAP; no breakdown of individual costs (half price servicing for two years, spare wheel also included). Have I understood correctly that this approach is illegal since September 2015? That is my interpretation of "Dealers selling gap insurance are now NOT allowed to sell it at the same time as you buy a car."
I would like to be absolutely sure of my ground before I start to negotiate on price and get this insurance removed; current insurer gives new for old replacement on car under 12 months.

Frozen_up_north · 22 February 2016 at 9:51AM

The dealership we visited claimed it "was the law" that we had to sit through a sales pitch on GAP insurance, which also included a pitch on alloy wheel and "scratch/dint" insurance! This is on a cash purchase of a new car.

The cost of the GAP insurance was £299 for 3 years cover, the top listed independant provider of the same insurance is £121, no 15 minutes of sales blather either.

I thought double glazing salesmen were dodgy, they have nothing on the rubbish talked by car dealers :rotfl:

turts · 28 March 2016 at 7:13PM

I have just brought a car from Westover Renault, Well last week.
At the time of Paying the deposit the Salesman asked me if I would like to take gap insurance out he briefly explained what the insurance was not that I was fully listening as all I was thinking about is the Vehicle I have just purchase

The insurance policy was £300 and something can't remember exactly how much but that was for 3 years cover

I said yes to the policy at the time but then thinking about it that night and reading about it I thought to myself I don't want it so had to go back the next day to tell him so But now I'm aware That what he did Was illegal As of 1st September 15

I know I have changed my mind about the insurance policy but is there anything I can do about it as I have not signs the financial paperwork or pick the car up yet

Thank you for your help in advance

gropinginthedark · 4 June 2016 at 11:29AM

Just bought new car. Sales tried to offer GAP, minor dint and "Glasscoat paint and fabric protection", together that would add about £1k. Said no to all, said I knew about GAP before so don't waste my time. I independently bought GAP elsewhere £100 cheaper, 5 years instead of 3 and better cover (replacement vehicle rather than back to invoice).

Looking around at cars with minor damage the 15cm circle the insurances cover seems inadequate and at £300+ expensive. Remember that normal insurance may cover the same damage - although with a bigger excess and risking your NCD.

Glasscoat? no idea whether it's worthwhile but I'd bet you can get the same elsewhere cheaper.

As for selling GAP at the same time as the car, my interpretation of the legal situation is that they can do the sales spiel but not actually close the sale same day. As for the "legal requirement" to explain it, I think that means they must give you the full FCA treatment if you are buying GAP but otherwise no need.

bluepen · 6 July 2016 at 9:58AM

We have recently purchased a car by PCP. It is the first time we have used PCP. Our car insurer pays out for a replacement new car in the first 12 months if our car is written off. From what I read, it seems that perhaps GAP insurance may be worth purchasing after this 12 month period, for the rest of the PCP contract, which is 41 months in total - so for the last 29 months of the contract? Does this make sense? The car dealer did try to sell us Gap insurance, but I told them we didn't want it.

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