RTI GAP Insurance advice

[clowesy]

Hi all

 

In February this year my parents decided to purchase a used car from Madeley Heath Motors in Stoke-on-Trent as the car we then owned was costing a fortune in repairs. The car in question was a second car that was insured for everyone in the household to drive; so for example i used the car for social use whilst either one of my parents used it for commuting. The new car that was purchased was to be used in the same fashion. However when purchasing the car I was given the opportunity by my parents to pay for the car instead of paying my £40 a week board in the hope that this would allow me to start building a credit history. At the time of purchase I was offered RTI GAP insurance which I was told would cover any driver named on the insurance policy against a total loss; so i purchased it.

 

The problem I have is that the vehicle was recently subject to a total loss and Admiral insurance company have made a settlement offer of £9500. The amount I owe on the finance is around £10000 and original invoice price of the car was around £11500. Upon looking at my GAP insurance policy so that i can make a claim I have noticed that a claim can only be made if the GAP insurance policy holder is also the registered keeper of the vehicle; which I am not. My mother is the registered owner of both cars in our household so that they can be insured on her Admiral multicar policy.

 

At the time of purchase i was not made aware of this requirement and I am now surely not going to covered for the shortfall between the amount offered to me for the car and the amount I still owe to the finance company.

 

Any advise as to how I should approach this matter would be greatly appreciated.

Thanks

[BigBen70]

Hi all

 

In February this year my parents decided to purchase a used car from Madeley Heath Motors in Stoke-on-Trent as the car we then owned was costing a fortune in repairs. The car in question was a second car that was insured for everyone in the household to drive; so for example i used the car for social use whilst either one of my parents used it for commuting. The new car that was purchased was to be used in the same fashion. However when purchasing the car I was given the opportunity by my parents to pay for the car instead of paying my £40 a week board in the hope that this would allow me to start building a credit history. At the time of purchase I was offered RTI GAP insurance which I was told would cover any driver named on the insurance policy against a total loss; so i purchased it.

 

The problem I have is that the vehicle was recently subject to a total loss and Admiral insurance company have made a settlement offer of £9500. The amount I owe on the finance is around £10000 and original invoice price of the car was around £11500. Upon looking at my GAP insurance policy so that i can make a claim I have noticed that a claim can only be made if the GAP insurance policy holder is also the registered keeper of the vehicle; which I am not. My mother is the registered owner of both cars in our household so that they can be insured on her Admiral multicar policy.

 

At the time of purchase i was not made aware of this requirement and I am now surely not going to covered for the shortfall between the amount offered to me for the car and the amount I still owe to the finance company.

 

Any advise as to how I should approach this matter would be greatly appreciated.

Thanks

 

Hi I work in insurance and the company I work for supplies gap insurance.

 

You are right in what you say you must be the registered owner and keeper of the car. In most cases this is fine but when this situation husband and wife, son and daughter etc arises we always but both names on the policy. That way there is a clear financial link.

 

You could contact the insurance company and the FSA as this should have been pointed out to you at the time you bought the policy.

 

If the dealership did not point this out this is a clear case of miss sell in that you have been sold a poliy that you could never benefit from.

 

But first I would contact the dealership as the very last thing that they or in fact any company want is to be investigated by the FSA. It costs a lot of money and takes a lot of time so they will want to help.

 

Let me know how you get on.

Edited September 14, 2011 by BigBen70
spelling mistake

[clowesy]

Thanks for the reply

 

I have sent in my claim form to Cardif Pinnacle and am now waiting to see what they come back with. At the time of purchase i was not given the option of adding further names to the policy despite the dealer being aware of the situation but I was very happy with all other aspects of the sales process. To be honest I am amazed that insurance companies are able to sell GAP insurance and state that the policy holder must be the registered keeper of the vehicle without asking to see the registration document for said vehicle.

[BigBen70]

Thanks for the reply

 

I have sent in my claim form to Cardif Pinnacle and am now waiting to see what they come back with. At the time of purchase i was not given the option of adding further names to the policy despite the dealer being aware of the situation but I was very happy with all other aspects of the sales process. To be honest I am amazed that insurance companies are able to sell GAP insurance and state that the policy holder must be the registered keeper of the vehicle without asking to see the registration document for said vehicle.

 

Hi let me know how you get on. The insurance company would not want their polices to be sold like this and the dealership should know better. The dealership could have loads and loads of problems with this as if you make it difficult for them it really is an open and shut case of a miss sell.

 

Good luck

[BigBen70]

Hi just spoken to a customer who was having the same problem.

 

The car finance is in the girlfriends name the Log book in his name. Won't say who who a very popular German car maker is saying the same thing.

 

Sad thing is he bought it from the dealership too.

 

How did you get on have you heard back from you gap insurance company yet?