Hi

[Fletcher912]

Hi everyone

I have a question about car GAP insurance paid for with a loan.

My question is, do I have a claim for miss selling as the insurance only covers 36 months, but the loan is for 60 months. So I'm paying an extra two years for expired insurance

[des8]

Re: Hi

Hi and welcome.

Certainly a bit odd!
GAP insurance is usually for 3 years, and if bought on credit, the finance runs for 3 years.

Was this insurance (and credit) arranged for you by the dealer from whom you purchased the vehicle?
If it was you must first raise your concerns with them, showing how much extra interest a 5 year finance deal costs.
At the same time ask how much commission they receive from the insurers and finance company.
If you had known at the time of taking the insurance about the commission amounts you may well have effected the insurance elsewhere.
More mis selling if there was hidden commission!

If that fails there is the FOS and court

[Fletcher912]

Re: Hi

Thanks for the quick reply. I'm about to VT a HP loan and this is part of that, which I've been told is classed as separate so they might ask for full payment. However my stance on this is that the gap insurance is on the same agreement as the HP part and only one set of terms. Plus they surely can't split them if the take one payment for both?

[des8]

Re: Hi

I'm not into the different types of credit agreements, and I didn't realise that non commodities could even be included in a hire purchase agreement.
I would have expected a different type of credit agreement for the insurance.
Hopefully some more knowledgeable Beagle will enlighten me!