GAP insurers suspend sales

[Ham_and_Jam]

https://www.fca.org.uk/news/press-releases/gap-ins...

80% of GAP insurers have agreed to suspend sales of new policies after the FCA reported they offer poor value.

Key figures-

Only 6% of the total paid in premiums are paid back in claims

Up to 70% commission of the premium paid to resellers, quite often car dealerships selling policies alongside a car sale.

Interesting to see how this changes the market once they conclude their findings.

[Ham_and_Jam]

Bam89 said:

I had to make a gap claim on a leased car that was broken into and severely damaged on my driveway to the point it had to be written off. T

he policy had been purchased through an online broker rather than a dealer, I'd paid the extra for deposit protection but the underwriter did everything possible to avoid paying back my deposit, claiming that the upfront payment on a lease is an advance rental and doesn't meet the terms of a deposit!

Fortunately the ombudsman was on my side and all was resolved, but its made me wary of these policies going forward

They were correct that the initial payment is an initial payment, not a deposit. However on a specific lease GAP product I would have expected that to be covered, and so did the ombudsman obviously.

Did you purchase specific lease (PCH) gap insurance?