Is indemnity insurance mandatory when buying a car from a dealership?

[KLW1321]

Hi, I'm in the process of buying a new car and the salesman has told me the £99 indemnity insurance is mandatory. It's a fairly new car with one previous owner (a lease company), so I don't feel the risk warrants this insurance as long as a recent HPI check has been carried out. Can anyone tell me if this is mandatory or just the salesman saying so, when actually it's an optional extra? Thank you!

[R0b]

Re: Is indemnity insurance mandatory when buying a car from a dealership?

No it would not be mandatory in the normal circumstances however if you are taking finance through a lender they may require it, but it should be made clear to you on the face of the agreement that it is mandatory - this might be the case where the dealer has a preferred lender and gets commission out of selling the extras.

Have you enquired as to why it is mandatory?

If you believe you have to take it then before purchasing the car get something in writing from the sales person or their manager to confirm that is mandatory to have when purchasing the car. That way if it turns out that it is not you can return the car for misrepresentation. If they refuse to put something in writing then it would all sound a bit fishy to me.

Als scan the terms and conditions before signing to see if there is any reference to indemnity insurance being mandatory condition of the agreement. If its not in there then question it.

[KLW1321]

Re: Is indemnity insurance mandatory when buying a car from a dealership?

Thanks Rob. There's no finance involved. I had the same thought as you so was going to ask them to write on the docs that it is mandatory and to sign to that. Was just hoping to get a definitive answer before I part with the money rather than have to fight to get it back if it's not mandatory! I can't see any reference to car indemnity insurance when searching the Internet, which is strange as this must be happening at dealerships all over the country. Thanks again, Katy

[R0b]

Re: Is indemnity insurance mandatory when buying a car from a dealership?

Send an email and ask them to confirm in writing that the indemnity insurance is mandatory and set out the reasons why the vehicle can't be purchased without it before you are willing to spend the money - at least you will have a paper trail which can be traced in the event this is untrue.

You are under no obligation to purchase any insurance or optional extras as the contract of sale is for the vehicle only.

[des8]

Re: Is indemnity insurance mandatory when buying a car from a dealership?

It is usual to pay an indemnity fee when purchasing a vehicle through an auction, (as often a full HPI check may not be possible).
However when purchasing from a dealership it shouldn't be necessary.