When Tarik’s car was written off, he thought he could opt for the money instead of a taking replacement car, but his GAP insurer wouldn’t meet his claim.

What happened

Tarik had his claim rejected on his Guaranteed Asset Protection (GAP) insurance policy after his car was written off. His insurer told him they wouldn't meet the claim as he had been offered a replacement care by his motor insurer. But Tarik had refused this and wanted the money instead. 

He didn't think this was fair, so contacted us for help. 

What we said

We spoke to Tarik's car insurer to confirm whether a replacement car had been offered. They confirmed that they had, but Tarik had rejected this. His finance provider also confirmed that they would have transferred the finance to the new car. 

When we checked the policy wording, we found it said the policy wouldn't pay if the policyholder refused a replacement car.

We explained to Tarik that the GAP insurer could allow a refusal to deal with the claim. This is because his car insurer had offered to provide a new car, and if he'd accepted this he would not have been out of pocket. 

We told Tarik that we didn't think the insurer had treated him unfairly. We explained that it would be unfair for the insurer to have to pay when there wouldn't have been a loss to him if he'd accepted the replacement car.