GAP insurance sales nonsense

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  • takman
    takman Posts: 3,876 Forumite
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    phill99 wrote: »
    Having brought a new vehicle less than three years ago for it to be written off by a 3rd party in June, I lost a shed load of cash. I paid £21k for the vehicle and battled to get my insurers to agree an £11k settlement. My replacement vehicle has GAP insurance so it is a decent policy to have.

    You "brought" a new vehicle?, where did you bring it to?.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    First Anniversary Name Dropper First Post
    bigadaj wrote: »
    Not quite following this.

    Are you saying you had a 2.5 year old car written off by a third party and received just over half the new value?

    That seems about right, probably better than many offers, do you think GAP insurance would give you a new car?
    GAP insurance for cash purchased cars will act as a new for old policy for the lifetime of the policy rather than just the first 12 months of a new car ownership, so yes his payout would've been topped up by his GAP to an amount where he could've got a new car.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    First Anniversary Name Dropper First Post
    takman wrote: »
    You "brought" a new vehicle?, where did you bring it to?.
    There's always one, although it does wind me up too ;)
  • takman
    takman Posts: 3,876 Forumite
    Combo Breaker First Post
    neilmcl wrote: »
    There's always one, although it does wind me up too ;)

    Ever since i have seen a sign at a garage saying "Cars Brought for Cash" I find it annoying wherever i see it used now!.
  • jimjames
    jimjames Posts: 17,596 Forumite
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    takman wrote: »
    You "brought" a new vehicle?, where did you bring it to?.

    I guess they brought it home from the dealers :)
    Remember the saying: if it looks too good to be true it almost certainly is.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    neilmcl wrote: »
    GAP insurance for cash purchased cars will act as a new for old policy for the lifetime of the policy rather than just the first 12 months of a new car ownership, so yes his payout would've been topped up by his GAP to an amount where he could've got a new car.


    How much does that cost?
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    First Anniversary Name Dropper First Post
    bigadaj wrote: »
    How much does that cost?
    Depending on the value of the car but easily less than £200 if you shop around for 3 years cover.
  • CB1878
    CB1878 Posts: 93 Forumite
    The sales pitch about an FCA requirement is nonesense but the dealership is covering their own back.

    If you later had a write off, and you could have benefitted from Gap Insurance, then that bit of paper saying you refused to discus it means you can't pull them for not telling you about is when they offer it for sale.

    I have worked within the industry and that situation has happened in the past.

    You don't have to buy it from the dealer, nor do you have to listen to the pitch but perhaps the dealer should be more honest that they are trying to cover their own back.
  • Frozen_up_north
    Frozen_up_north Posts: 2,420 Forumite
    First Anniversary Name Dropper Photogenic First Post
    CB1878 wrote: »
    The sales pitch about an FCA requirement is nonesense but the dealership is covering their own back.

    If you later had a write off, and you could have benefitted from Gap Insurance, then that bit of paper saying you refused to discus it means you can't pull them for not telling you about is when they offer it for sale.

    I have worked within the industry and that situation has happened in the past.
    It really is a sales pitch to increase profit for the dealership, in the same manner as breakdown cover for domestic appliances that you used to be pestered with when buying white goods. They also mentioned alloy wheel damage and paint scratch cover in the sales pitch we sat through 18 months ago with the last car.

    Why, or how, could anyone blame a car sales person when they write off a fairly new car and their insurance company falls short of what the customer expects the value to be?
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    CB1878 wrote: »
    The sales pitch about an FCA requirement is nonesense but the dealership is covering their own back.

    If you later had a write off, and you could have benefitted from Gap Insurance, then that bit of paper saying you refused to discus it means you can't pull them for not telling you about is when they offer it for sale.

    That is completely asinine but it comes as no surprise that someone who has been in the industry is saying that what they did was a good thing. If you take that to its logical extent for any purchase it becomes ridiculous given the vast range of things and events you can get insurance to cover.
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