Safe and Sound Motor Insurance, based in Lancashire, has come under scrutiny for potential mis-selling of GAP insurance to residents. The Financial Conduct Authority (FCA) investigation into motor finance found widespread issues with how GAP insurance was sold across the UK, including in Lancashire.
GAP Insurance Sales in Lancashire
GAP insurance is a type of protection that covers the difference between what your car insurance pays out when you have an accident and what you still owe on your finance agreement. In Lancashire, many residents purchased GAP policies directly from dealerships rather than through online providers or other independent brokers. The FCA found that these dealership sales often involved higher prices compared to similar products available elsewhere.
Typically, GAP insurance sold at local dealerships in Lancashire could be significantly overpriced due to a discretionary commission arrangement (DCA) between the insurer and the dealer. Dealers would receive large commissions for selling GAP insurance alongside car finance agreements, incentivising them to push these policies on consumers regardless of whether they were the best option.
In contrast, online alternatives often offer more competitive pricing because there are no middlemen involved in the sale process. This disparity means that many Lancashire residents might have paid much more than necessary for their GAP insurance when buying it from a dealership rather than exploring other options first.
How to Complain to Safe and Sound Motor Insurance from Lancashire
If you suspect that your GAP insurance was sold through an unfair practice in Lancashire, you can directly complain to Safe and Sound Motor Insurance. The company provides a straightforward complaints process on their website at https://www.safeandsound.co.uk/complaints.
To start the process, visit their official site and follow the instructions under 'Make a Complaint'. This will allow you to submit your concerns either via email or post. It’s important to note that this is a free service-there’s no need for a claims management company to assist with your complaint. Safe and Sound Motor Insurance should acknowledge receipt of your complaint within three working days and aim to resolve it as quickly as possible.
What Lancashire Residents Should Do Next
To determine if you have grounds for a complaint, the first step is to check how much you paid for your GAP insurance compared to what similar products cost online at the time of purchase. Gather any documents related to your car finance agreement and the GAP policy, including sales agreements, receipts, and correspondence with the dealership.
Understanding your cooling-off rights can also be beneficial. You have a statutory right to cancel certain types of credit agreements within 14 days without giving a reason, which may include some motor finance deals. However, this does not apply to GAP insurance policies themselves but might influence how you approach making a complaint based on mis-selling practices.
Sources and References
- ONS Census 2021
- Financial Conduct Authority (FCA) investigation into motor finance