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When someone’s car is stolen or written off, their car insurer will generally pay out the market value of the car. Some people buy Guaranteed Asset Protection (“GAP”) insurance to cover the difference between this market value and either the cost of a new car, or what’s left to pay back on their car finance. 

We hear from people who say their GAP insurance hasn’t protected them as they’d expected. Some people feel they shouldn’t have been sold it at all. And others are unhappy with how long it’s taking to get the money they’re owed.

need to know

  • Many complaints we see about GAP insurance involve policies sold by car dealerships alongside cars bought on finance. We’ll ask questions about how the policy was sold – and decide whether someone was given clear information about how it worked.
  • If someone was given personal advice about buying GAP insurance, we’ll check the advice was suitable. For example, if they paid a large deposit and only took out a small amount of finance, it’s unlikely there would actually be a “gap” to cover.  Some GAP insurers don’t give advice – so it’s up to a potential customer to read about a policy and decide if it’s right for them.
  • If the insurer didn’t give clear information – or suitable advice – we’ll
    consider whether this affected what someone did next. We might decide someone wouldn’t have acted any differently. But we might decide they wouldn’t have bought the GAP insurance – or even the car. If this is the case, we’ll tell the insurer to make sure they’re not out of pocket.
  • Some people complain they haven’t been offered a fair market value
    for their car – or are unhappy about the time it’s taking to find out.
    These problems need to be raised with the car insurer, rather than the GAP insurer. There’s more about this in our approach to car valuations.

common complaints showing our approach

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