Do you know if the GAP insurance policy you bought from Protect Your Family was fairly priced? As an independent motor finance information directory, MLJ.org.uk provides insights into potential mis-selling issues with GAP insurance sold by companies like Protect Your Family. This article explores how GAP insurance may have been overpriced when purchased through dealerships and what steps to take if you suspect that your policy from Protect Your Family was mis-sold.
What is Protect Your Family?
Protect Your Family Ltd, the parent company of Protect Your Family, offers various financial products including GAP insurance. These add-on policies are often sold at car dealerships alongside car finance agreements. The primary product offered by Protect Your Family in this context is Guaranteed Asset Protection (GAP) insurance, designed to cover the difference between what your insurer pays out and the outstanding balance on your car loan if your vehicle is written off or stolen.
How GAP Insurance Mis-selling Works
The Financial Conduct Authority (FCA) identified several key issues with how GAP insurance was sold at dealerships. Dealers often pushed customers into buying GAP policies through a discretionary commission arrangement (DCA), which incentivised them to upsell these products rather than focusing on the customer's actual needs and financial situation.
One major issue is that dealer-sold GAP insurance can cost between £300-£500, while similar coverage is available online for as little as £50-£150. The FCA found that customers were not provided with adequate information about alternative pricing options or the potential benefits of waiting to purchase a policy later on their own.
consumers often felt pressured into buying GAP insurance at the point of sale without having time to fully consider their options or shop around for better deals. This pressure selling can lead to inflated prices and policies that do not suit the customer's needs.
How to Complain About a Protect Your Family GAP Policy
If you suspect your Protect Your Family GAP policy was mis-sold, you have several options for redress:
- Direct Complaints: You can file a complaint directly with Protect Your Family through their dedicated complaints page at https://www.protectyourfamily.co.uk/complaints. This process is free and straightforward.
- Dealer Complaints: Alternatively, if the policy was sold by a car dealership, you should also consider filing a complaint with that dealer.
- No Need for Claims Management Companies: You do not need to engage a claims management company to handle your complaint; these services are often unnecessary and can be costly.
Your Cooling-off Rights
You have a 14-day cooling-off period from the date of purchase during which you can cancel your GAP insurance policy and receive a full refund. To exercise this right, simply inform Protect Your Family or the dealership that sold the policy in writing, either by email or post.
To ensure your cancellation request is processed correctly:
- Contact Details: Use the contact information provided on Protect Your Family’s complaints page.
- Document Proof: Keep a copy of your written cancellation request and any correspondence for your records.
- Timeline: Make sure to submit your cancellation within 14 days; otherwise, your policy will be considered active.
What to Do Next
If you believe you were misled into purchasing an overpriced GAP insurance policy from Protect Your Family:
- Gather Documentation: Collect all relevant documents including the policy details, purchase receipt, and any sales literature or emails.
- Review Costs: Compare what you paid with similar policies available online to determine if there was a significant price difference.
- Submit Complaints Directly: Follow the steps outlined in Protect Your Family’s complaints page to submit your concerns.
By taking these steps, you can seek compensation for any financial losses incurred due to mis-selling practices and ensure that future consumers are better protected from similar issues.
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