GAP Insurance

Honest John Back Room » Motoring discussion
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Mon 19 Dec 2016 18:24
GAP Insurance - skidpan

Back in 2014 whn my Leon was approaching a year old I bought GAP cover form a company called Aequitas Automotive Ltd who trade online as GAP Insurance 123. Good cover and good service for about £120. They were registered with the FCA so no issues with them being dodgy.

When the wife bought her Note in 2015 we repeated the excercise, same company, good price, about £130.

Both were way less than the dealers were asking.

Early November both myself and the wife got letters from a liquidator in Gibraltor telling us the insurance company had failed with large debts and cover had ceased in October. Did some checking and it appeared that it was correct but it also came to light that Aequitas were sorting a deal out to provide cover with another insurer.

Over the weekend letters came for Aequitas informing us that a claim had been submitted to the FCA and as a result alternative and identical cover had been arranged on our behalf. They gave us the option of cancelling the policies and claiming from the FCA ourselves but what would be the point.

Top marks to all concerned for providing continuing cover with no costs or hassle.

And to confirm I have no connection with Aequitas except as a very happy customer.

Come March I will be transferring the remainder of the Leons policy onto the Superb, bet you cannot do that with dealer arranged GAP.

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Mon 19 Dec 2016 19:17
GAP Insurance - SLO76
When I started out selling for a large dealer in the 90's GAP was a terrible product from a customers point of view and one we as sales staff were under pressure to sell as the firm made a huge margin from it.

Back then all it covered was the difference between what you owed on a car and the likely payout if you were involved in a bump that wrote it off and that was it. It was irrelevant to most customers, only really of any use if you were putting down a tiny deposit and only if you bumped it within months of getting it as your debt to value on the car would rapidly decrease as your loan was replayed. But still I was given into bother for not pushing a product I didn't regard as value for money.

From memory it was around £200 but the dealer made at least half that in profit and often if a customer was putting down a small deposit the finance company would only approve it if you sold GAP with the finance. Must've been a huge number of people missold this product over the years. I'm glad it's a vastly better product today, the result of competition and misselling claims over the years.
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