How to reclaim gap insurance
If you feel your gap insurance was mis-sold and would like to know how to get a refund then follow the simple steps below:
1. Firstly, you must complain directly to the company that sold it to you (i.e. the salesperson's employers), this will usually be the car dealership. Even though the insurance is likely to be provided by another company, it is the person who sold it to you who is responsible.
2. Write to them clearly explaining why you think you were mis-sold and that you would like a full refund of premiums paid on the policy. If you can, give a concise account of the transaction e.g. what the salesperson said to you, what actions they took (or didn't take) when selling you the gap insurance.
3. Remember to include details of the policy in your letter such as the policy number, the date it was sold and the individual who sold it to you.
4. State that you expect a reasonable response within 14 working days or you will take your complaint to the financial regulator.
5. Ensure to send the letter recorded delivery so you have proof the company received it.
6. If the dealership rejects your claim then write to them again, making sure that your complaint is seen by senior management. Repeat what you said in the first letter and explain why you think their response was unreasonable.
7. If you are still not happy with the result, or if your complaint was ignored, then contact the Financial Ombudsman Service. This is a free and independent service set up to resolve disputes between consumers and financial companies. More details on how to claim through the FOS can be found on their website.
You may also consider taking your dispute to the small claims court. See our guide to the small claims court for more info. It is highly recommended that you consult your local Citizens' Advice Bureau or a solicitor before taking any legal action.
Were you also sold PPI?
If you were mis-sold gap insurance with your car finance deal then you may have also been mis-sold PPI (Payment Protection Insurance). Please see our mis-sold PPI reclaim service for more info, you could be owed £1000s.