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How to know if you were mis-sold gap insurance

If any of the below apply to you then you may have been mis-sold your gap insurance and be able to apply for a refund of all premiums:

The salesperson did not advise you with regards to the gap insurance. In other words, he did not tell you what it was, how much it cost or how you would be paying for it.

The salesperson did not check if you were suitable for the policy. You may not be suitable for gap insurance if...

  • You have adequate funds to cover the difference between any insurance settlement and the value of the vehicle and so would not require gap insurance.
  • Your car insurance already covers you for the full amount you paid for the vehicle.
  • The finance agreement covers any gap in value
  • Your vehicle is already heavily discounted (e.g. you bought it on the scrappage scheme) so there would not be a gap in value.

The salesperson said that you would not be approved for finance unless you took out the gap insurance. Like any other insurance you should have the option to shop around for the best deal first.

You were not given the option to refuse the gap insurance, i.e. you were made to believe it simply came part and parcel with the deal, or it was added without your knowledge.

If you think you were mis-sold your gap insurance and be eligible for a refund then the next step is to make a claim. Please go to the next section of the guide to find out how.

How to reclaim gap insurance