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It seems that a GAP policy may not be all you would expect !

Beware if a dealer deposit contribution is involved, a common practice today.

Dealers have been urged to run the rule over the terms and conditions of the Return to Invoice GAP insurance products they sell to consumers.

Mike Macaulay, head of corporate sales at AutoProtect said some Return to Invoice products being offered in the marketplace did not include Finance Deposit Allowances or scrappage incentives on offer by carmakers.



This meant that consumers did not get the full invoice value on their claims for insurance write-off vehicles.


“In the event of a claim for return to invoice insurance, our approach is very straightforward, we pay the customer based upon the invoiced price of the car involved. Contributions such as FDAs have no bearing on this decision.


“Return to invoice payouts made with the FDA discounted mean that the customer may be unable to replace their written-off car on a like-for-like basis, without finding the extra FDA allowance from their own resources.


“I would encourage all dealers and OEM finance providers to verify that the RTI products they offer demonstrate the type of transparent approach that will benefit all of us in the long-term.


“If T&Cs need to be updated to take account of FDAs and scrappage allowances, then affirmative action needs to be taken.”
 
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