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GAP Insurance Refunds

Bought GAP insurance you didn't need? Get a refund.

#At a Glance
Difficulty ⭐ Easy
Time to DIY 30 minutes
Typical Refund £100–£400
Time Limit 6 years (mis-selling) / Policy term (cancellation)
Escalation Financial Ombudsman Service

#What Is It?

GAP (Guaranteed Asset Protection) insurance pays out if your car is written off and the insurance payout doesn't cover what you owe on finance.

Problems with GAP insurance:

  • Often expensive (£200–£600 through dealerships)
  • Same cover available much cheaper elsewhere (£50–£150)
  • Sometimes mis-sold (you didn't need it)
  • You can cancel within 14 days for full refund
  • You can cancel anytime for pro-rata refund

#Two Types of Refund

#1. Cancellation Refund

You have a 14-day cooling-off period for full refund. After that, you can still cancel for a pro-rata refund (minus admin fee).

#2. Mis-Selling Refund

If it was mis-sold, you can claim back the full premium. Mis-selling includes:

  • Wasn't explained properly
  • Didn't need it (e.g., car value less than finance)
  • Pressured into buying
  • Policy didn't match your needs

#Am I Eligible for Mis-Selling Claim?

#✅ Signs it was mis-sold:

  • You felt pressured to buy at the dealership
  • It was added without explanation
  • You were told you had to buy it to get finance (not true)
  • The policy didn't suit your situation (e.g., PCP with low deposit)
  • Cheaper alternatives weren't mentioned
  • You bought it at the same time as the car without time to consider

#❌ Less likely mis-sold if:

  • You actively researched and chose the policy
  • It was clearly explained and you understood it
  • It was appropriate for your circumstances

#Step-by-Step: Cancellation

#Within 14 Days

  1. Write to the GAP insurer (not the dealership)
  2. State you're exercising your cooling-off right
  3. Request full refund
  4. Should receive refund within 30 days

#After 14 Days

  1. Write to the GAP insurer requesting cancellation
  2. Request pro-rata refund for unexpired period
  3. There may be a small admin fee
  4. Refund should be received within 30 days

#Step-by-Step: Mis-Selling Claim

#Step 1: Gather Information

  • GAP insurance policy documents
  • How it was sold (at dealership? pressure?)
  • What you were told about it
  • Price paid

#Step 2: Complain to the Insurer

  • Explain why you believe it was mis-sold
  • Request full refund
  • Provide evidence if available

#Step 3: Escalate If Rejected

#Common Questions

Q: The dealership sold it but a different company provides it – who do I complain to?

Complain to the insurance provider (named on your policy). You can also complain to the dealership if they mis-sold it.

Q: I've already used the policy (made a claim) – can I get a refund?

No. If you've claimed, you've used the policy.

Q: I paid cash for the car – was GAP pointless?

If you paid cash and had no finance, GAP was likely unnecessary. Strong mis-selling case.

Q: Can I get cheaper GAP elsewhere?

Yes. Standalone GAP from comparison sites costs £50–£150 vs £200–£600 at dealerships. Same cover, fraction of the price.