gap insurance for motor vehicles

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Comments

  • Strike_Team
    Strike_Team Posts: 81 Forumite
    This is one of the sneaky tricks car salesmen use. They offer you the car itself for a fairly attractive price, then they make a fat profit on extras such as vehicle replacement insurance and finance at extortinate interest rates. When I was looking at a new car, the maniupualtive salesman was trying to plant seeds of worry in my mind talking about the risk of my car being stolen and burned out. Of course he was really only interested in his big fat commission.

    Personally I wouldn't touch this sort of "insurance" with a very long pole.
  • sfcadmin
    sfcadmin Posts: 2 Newbie
    Hi,

    I am the administrator for https://www.shortfallcover.co.uk and we are very concerned to see this thread.

    Motgs if you were a customer I apologise if you did not receive are normal service and would ask you to contact us so that we can understand where we went wrong and learn from this.

    We have never had a complaint telephone or email from any customer since we went live at the beginning of the year. We have no outstanding refunds which are paid back to the customers card immediately and this is advised to the customer with an email.

    We have never charged an administrative fee and never will if a customer cancels. (The fee highlighted was in the event of a claim. This was not clear and has now been deleted).

    If Motgs had called / emailed we would have clearly highlighted this. I also do not understand if the vehicle was the same (presumably similar value) the only amendment to the policy would be a change of vehicle details.

    We were the first company to offer cover for 1-4 years, first to offer cover for private vehicles and aim to remain a leader in this field.

    We will gladly answer questions for readers and respond by showing not only that it is from us but https://www.click4gap.co.uk another market leader

    Kind regards
    Shortfallcover
  • DTBK
    DTBK Posts: 8 Forumite
    sfcadmin wrote:

    We have never charged an administrative fee and never will if a customer cancels. (The fee highlighted was in the event of a claim. This was not clear and has now been deleted).

    You charge a £50 admin fee for making a claim on the policy? In my book that makes your policies expensive!
    sfcadmin wrote:
    If Motgs had called / emailed we would have clearly highlighted this. I also do not understand if the vehicle was the same (presumably similar value) the only amendment to the policy would be a change of vehicle details.

    Motgs - I think you're being called a liar... if you had called or emailed them they obviously would have helped you... but... hang on....
    Motgs wrote:
    No one answered the phone when I called during normal office hours to try and change the car, so I left an urgent message as I needed to be covered to drive my new car a few days later, asking them to call me back.

    That's right... you did call them... and they didn't help! Although to be fair, I'd be a little confused as to who to call... if you spend enough time looking around their website there's a number of different company names mentioned:
    Presumably Motgs must have called the wrong company - maybe next time you'll win the lottery :rolleyes:

    Interestingly but not necessarily related - Insure Online Ltd are listed on the FSA (Financial Services Authority) register (https://www.fsa.gov.uk/register) as having submitted an application to cancel their authorisation and regulation by the FSA.
    sfcadmin wrote:
    We will gladly answer questions for readers and respond by showing not only that it is from us but https://www.click4gap.co.uk another market leader

    How exactly can you speak on behalf of Click4Gap.co.uk - one of your competitors? :huh:

    DTBK
  • ArchieB_2
    ArchieB_2 Posts: 293 Forumite
    The FSA regulations DO allow an admin charge to be made on cancellation in the first 14 days.

    Many motor policies will replace your new car in the first year in the event of a total loss claim. The remaining years are up to you, but personally I wouldn't fork out for another policy as your motor insurance pay out SHOULD enable you to replace your car with one of a similar age and spec.
  • sfcadmin
    sfcadmin Posts: 2 Newbie
    DTBK,

    thanks for your response.

    Just for clarity - the admin fee was in the event you cancelled within 14 days and had had a claim. This as pointed in my posting has been deleted.

    There is one phone number on the contact us page and one email address for shortfallcover as shown below on our contact us page. We believe this is clear and have not had any problems that we are aware of accept for this posting.

    Administration Department
    Tel J D Concepts (0)845 094 1178
    Fax: 44 (0)870 132 5702

    Email: info@shortfallcover.co.uk

    The insurance is underwritten by Haven Insurance Company Limited. In the event that you have a claim, contact the claims administrator at:

    Insure Online Limited
    28 Hoghton Street, Southport, Merseyside, PR9 0PA
    (0)870 116 4432

    I am very happy as stated in my posting to answer questions on behalf of readers if they so wish and will recommend another competitor to show independence. You ask why - quite simple we are confident of our products and service.

    Not related but information for yourself and readers Insureonline have merged with Advent solutions limited a large provider to the motor trade of motor related products and will be under there FSA registration.

    I look forward to any postings where we can be of help.

    Kind regards
    Shortfallcover
  • DTBK
    DTBK Posts: 8 Forumite
    ArchieB wrote:
    The FSA regulations DO allow an admin charge to be made on cancellation in the first 14 days.

    Having researched this further I can confirm (on the contrary to my previous applicable post above) that an administration fee can be charged - I guess it's a good job I didn't put money on it. :confused: However according to the FSA, this fee must not:
    • Exceed an amount which is in proportion to the extent of the service already provided by the insurer in comparison to the full coverage of the contract; and
    • be such that it could be construed as a penalty;

    Having generated some random quotes on shortfallcover.co.uk, based on their quoted premiums a £50 admin fee is a very high proportion and would surely therefore be construed as a penalty.

    Therefore I believe that their £50 fee (I acknowledge that it has now been deleted from their terms and conditions) would have been easily disputed.
    ArchieB wrote:
    Many motor policies will replace your new car in the first year in the event of a total loss claim. The remaining years are up to you, but personally I wouldn't fork out for another policy as your motor insurance pay out SHOULD enable you to replace your car with one of a similar age and spec.

    Granted for brand new vehicles many motor insurance policies will provide New for Old cover in the first twelve months but as you point out, the remaining years could be an issue. Especially as in many cases it isn't possible to purchase GAP Insurance for a car you bought more than 90/120 days ago (depending on the supplier).

    Motor Insurance New-For-Old clauses aside, I agree that your Motor Insurance policy *should* allow you to replace the vehicle with one of a similar age and mileage but why settle for that when by taking out Invoice/RTI or Replacement/VRI GAP Insurance, you can top up your Motor Insurance payout to the amount you originally bought the vehicle for (RTI) or the cost of replacing the vehicle new for old (VRI) - and buy a vehicle newer/better than the one which was written off!?

    DTBK
  • DTBK
    DTBK Posts: 8 Forumite
    Just to make you all aware, on the basis that charging an Admin Fee on policy cancellation is not illegal, I have corrected my previous post in which I stated that it was possibly illegal.

    These forums are spidered by Internet Search Engines therefore I don't think it would be fair to have the word "illegal" being used when in fact the company in question would appear to be acting legally.

    I trust this is acceptable and understandable to everybody.

    Regards

    DTBK
  • DTBK
    DTBK Posts: 8 Forumite
    sfcadmin wrote:

    Just for clarity - the admin fee was in the event you cancelled within 14 days and had had a claim. This as pointed in my posting has been deleted.

    I guess it doesn't matter much now that this clause has been completely deleted but on the basis that GAP Insurance policies allow one claim only, why would somebody cancel a policy after having made a claim... if they've made a claim, they've no longer got a GAP Insurance policy to cancel...? :confused:
    sfcadmin wrote:
    There is one phone number on the contact us page and one email address for shortfallcover as shown below on our contact us page. We believe this is clear and have not had any problems that we are aware of accept for this posting.

    Thanks for clarifying the correct contact details. Hopefully Motgs will be able to post a reply telling us all that they got a full refund.... happy endings you know... you just can't beat them ! :D

    Regards

    DTBK
  • greyster
    greyster Posts: 2,392 Forumite
    I took out a gap insurance policy when I purchased my used Honda Civic from a main dealer.

    I can't get my head around the wording regarding the excess and wondered if anyone can explain it to me.

    "Any payment of benefit under this policy is conditional about You having received a Total Loss payment under Your Comprehensive Motor Insurance. This includes any excess above £250 and any deduction for salvage (if either are applicable under the comprehensive insurance".

    Wondering whether I should lower or up my excess on my next comp insurance. Currently its about £250.

    Thanks
  • rachyroo_2
    rachyroo_2 Posts: 5 Forumite
    Hello,

    I've just bought my first brand new car and have been advised to take out Gap insurance. I understand that this is to cover depreciation over the 3 years of my finance deal (I have bought the car on a Ford 'Options' scheme) My dealer has quoted me £349 to cover the 3yrs which they want either as one payment or in 12 interest free instalments.

    Can anyone advise if i should be looking elsewhere for a cheaper policy or if i'm best sticking to the Ford policy?

    Cheers

    Rachel
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