Have you been sold GAP
Insurance?
I was speaking to a friend the other day and he told me how
he had recently purchased a secondhand car. He said that
after a lengthy haggling process the salesman got the
paperwork out and it was at this point that everything seemed
to suddenly go into fast forward. He was rushed into signing
the agreement, the salesman said something about 'standard included
extras' and when my friend questioned anything he
was told it was 'normal', and the salesman just changed
the topic.
It was not until about a week later when his wife read the
paperwork and noticed a mysterious extra costing £350
. It was for GAP Insurance. They
did not know what it was but assumed it was nothing sinister
because they trusted the car salesman. Unfortunately, this was
a clear cut case of GAP insurance mis-selling.
GAP Insurance is designed to protect the policyholder from
financial loss by covering the difference between the value of the
car at the time of purchase and the insurance settlement, in the
event of the vehicle being written off.
But in many cases the policy has been mis-sold for any
of the following reasons:
- The buyer was told they must have GAP
insurance.
- They did not even know they are buying it.
- They never benefit from it because their comprehensive
insurance will cover them and put them in the position they would
have been in but for the accident anyway.
The real issue is not an argument as to how valuable this
insurance is, but more the fact that, like extended warranties,
you didn't want it and probably don't need it. Someone
effectively took £300 of my mate's hard earned cash
off him because he was too trusting.
If you think you may have been mis-sold GAP insurance, you can
claim back every penny. Complain to the company that
sold it to you, and if they don't give you a refund refer them to
the Financial Ombudsman.
Claims Financial
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