VT of Peugeot Finance of a used car, issue with paying outstanding GAP insurance?

[sgtberbatov]

Hi, and thanks for accepting me on the forum!

I've got a 2010 Peugeot 3008 which I've had for nearly 3 years. I bought it as a used car in April 2014 from Robins & Day in Birmingham on a 5 year finance deal. For the 5 years I would have GAP insurance on it. I pay £177 per month in one payment only to Peugeot/PSA Finance.

Through one reason or another, I now want to get rid of the car. I've spoken to Peugeot who sent me through a final settlement statement. I'm well over 50% paying the car back so I've nothing to pay on the car itself. However, they have said that I need to pay £180 to cover the GAP insurance on the vehicle.

I rang them up as an initial enquiry, and I queried this with the lady who spoke to me. She said that the GAP insurance is seperate to the finance and Peugeot paid the GAP insurance in full on my behalf. So I'm paying Peugeot back apparently. I asked her though wouldn't Peugeot get a refund on the insurance if it had been paid in full, like you would with other forms of insurance bought for the full term - when she promptly hung up. Professional!

Anyway, after this call I emailed Peugeot requesting a copy of my contract that I agreed to and the terms for the GAP insurance. It's at this point I get an email back saying:

"unfortunately we don’t hold the terms and conditions for your GAP policy; you would need to contact your GAP provider directly in this regard."

I replied saying I was under the assumption Peugeot were in charge of the GAP as I'm paying Peugeot for it, especially as I need to pay the balance of it. I got another response from them saying that I would need to speak to the dealership where I bought the car from in order to find this out. I called Robins & Day and they told me the GAP insurance is provided by Car Care Plan UK.

Now, obviously, I don't want to pay any more than I have to and I have read in other places that if you have paid over 50% of the finance deal there is no settlement figure for the GAP insurance? I don't quite understand it to be honest, and it's just this sum of money that is preventing me from starting the process of VT properly as the car is ready to go.

So do I actually have to pay Peugeot the balance of the GAP insurance even if it's a 3rd party that I have the policy with?

[sgtberbatov]

Re: VT of Peugeot Finance of a used car, issue with paying outstanding GAP insurance?

I've managed to find the forum post that I referred to in the above: http://legalbeagles.info/forums/show...-GAP-insurance

[Arcadian]

Re: VT of Peugeot Finance of a used car, issue with paying outstanding GAP insurance?

If it were me in this situation, and the car was "ready to go", then I would probably send the notice of VT asap and worry about defending against the erroneous sounding gap insurance later...

[sgtberbatov]

Re: VT of Peugeot Finance of a used car, issue with paying outstanding GAP insurance?

I initially wanted to do that, but I wanted to be sure I was right in what I was thinking before causing more hassle for myself.

I popped in to the dealership yesterday to track down the ellusive terms and conditions for the GAP policy, but the guy I spoke to wasn't sure whether I came under an arrangement with an old insurer or their current one. He gave me the email to their manager, and she emailed me this:

"I do believe it was Car Care plan back then and my understanding is you pay the full premium as part of the settlement to hand the ca back then you contact Car Care Plan to cancel the policy and you will receive any refund pro-rata"

I'm going to contact them on my lunch break to see if that's the case. However I do not recall Car Care Plan being mentioned at any point. Not even in the contract I signed.