Warrantywise Ltd, the extended warranty and GAP insurance provider founded by Quentin Willson, has come under scrutiny for potential mis-selling practices. The Financial Conduct Authority (FCA) investigation found that consumers often paid inflated prices for GAP insurance policies at dealerships when cheaper alternatives were available online.
What is Warrantywise?
Warrantywise Ltd offers a range of extended warranty and GAP insurance products to protect car owners from unexpected costs associated with repairs, breakdowns, or loss of the vehicle. Their GAP insurance covers the difference between what your insurer pays out in the event of a total
write-off or theft and the remaining amount you owe on your finance agreement.
How GAP Insurance Mis-selling Works
GAP insurance mis-selling typically involves dealerships selling policies at inflated prices compared to those available elsewhere. For instance, a policy that might cost £50-£150 online could be sold for £300-£500 by a dealership. This discrepancy is due in part to the use of
Discretionary Commission Arrangements (DCAs) between dealerships and insurance providers, which can inflate the final price paid by consumers.
In addition to higher costs, consumers often face pressure selling tactics at point-of-sale interactions. Salespeople may emphasise the perceived benefits of GAP insurance without providing full details about cheaper alternatives or the 14-day cooling-off period available to all customers.
How to Complain About a Warrantywise GAP Policy
If you believe that your Warrantywise GAP policy was mis-sold, you can
complain directly to the company. Their complaints page is located at
. The process is free and straightforward, requiring no involvement from claims management companies.
To initiate a complaint:
- Gather Relevant Documents: Collect any paperwork related to your policy purchase, such as confirmation emails or receipts.
- Check What You Paid: Compare the amount you paid for the policy with prices available online.
- Contact Warrantywise: Submit your complaint via their dedicated complaints page.
By following these steps, you can address any concerns directly and efficiently without incurring additional costs.
Your Cooling-off Rights
All consumers have a 14-day cooling-off period during which they may cancel a GAP insurance policy for a full refund. To exercise this right:
- Notify Warrantywise: Send an email or letter to the company within 14 days of purchasing the policy.
- Provide Cancellation Details: Include your name, address, and contact information along with details about the policy you wish to cancel.
By cancelling during this period, you can avoid paying for a potentially mis-sold product.
What to Do Next
If you suspect that you were sold GAP insurance at an inflated price or under misleading circumstances:
- Gather Documentation: Collect all relevant documents, such as contracts and receipts.
- Compare Prices: Look up the same policy online to see if it was overpriced by your dealer.
- Submit a Complaint: Use Warrantywise's official complaints page at to initiate your complaint.
You do not need a claims management company for this process, as you can handle everything directly through the provider or dealer who sold you the policy.
Sources and References
- Financial Conduct Authority (FCA) investigation on GAP insurance mis-selling.
- Warrantywise Ltd complaints page:
- Information about cooling-off periods for financial products in the UK.