Insure The Gap is a leading provider of GAP insurance, offering coverage to protect drivers against financial losses if their vehicle is written off or stolen. As part of Premia Solutions Ltd, Insure The Gap provides various types of GAP products designed to meet the needs of car owners looking for added security.
What is Insure The Gap?
Insure The Gap offers Guaranteed Asset Protection (GAP) insurance policies that cover the difference between a vehicle's insurer payout and any remaining finance balance. This coverage is particularly valuable during the early years of a car loan or lease when depreciation can significantly exceed the decrease in market value. Premia Solutions Ltd, Insure The Gap’s parent company, provides full GAP solutions tailored to different types of financial arrangements, such as finance leases and personal contracts.
How GAP Insurance Mis-selling Works
The Financial Conduct Authority (FCA) identified widespread mis-selling practices involving GAP insurance across the UK automotive industry. Dealerships frequently sold GAP policies at inflated prices-£300-£500 compared to £50-£150 for similar coverage purchased online. These high costs were often due to
discretionary commission arrangements (DCA), which incentivised dealers to push more expensive policies onto unsuspecting consumers.
many car buyers were not provided with adequate information about cheaper alternatives or given sufficient cooling-off periods. Pressure selling tactics further compounded the issue, making it difficult for customers to make informed decisions. The FCA’s intervention has led to new regulations that prohibit dealers from selling GAP insurance at the point of sale as of September 2024.
How to Complain About a Insure The Gap GAP Policy
If you purchased a GAP policy from Insure The Gap and believe it was mis-sold, you have several options for filing a complaint. First and foremost, reach out directly to Insure The Gap using their dedicated complaints page at https://www.insurethegap.com/complaints. This process is entirely free of charge, and there’s no need to engage a
claims management company.
To lodge your complaint effectively:
- Gather Documentation: Collect all relevant paperwork, including the original policy documents, payment receipts, and any correspondence with Insure The Gap.
- Write a Clear Complaint Letter: Outline the issues you experienced in detail, highlighting specific concerns regarding pricing or sales tactics.
- Follow Up Regularly: Keep track of your complaint’s progress by following up periodically if there are no updates within a reasonable timeframe.
Your Cooling-off Rights
Consumers have a 14-day cooling-off period after purchasing GAP insurance from Insure The Gap, during which they can cancel the policy and receive a full refund. To exercise this right:
- Notify Insure The Gap: Inform them of your decision to cancel within those two weeks.
- Provide Proof of Purchase: Ensure you have all necessary documentation to prove when and how the policy was purchased.
What to Do Next
If you suspect that you were mis-sold a GAP insurance policy from Insure The Gap, start by reviewing the details of your purchase. Compare what you paid against standard online rates for similar coverage. Once you’ve gathered sufficient evidence, proceed with filing an official complaint through Insure The Gap’s dedicated complaints page. Remember, it is entirely free to
complain directly and there's no need to hire a claims management company.
Sources and References
- Financial Conduct Authority (FCA) report on GAP insurance mis-selling.
- Premia Solutions Ltd website: https://www.insurethegap.com/
- Insure The Gap complaints page: https://www.insurethegap.com/complaints