GAP Insurance Liquidation

[ernieh]

I've just had a notification that the GAP Insurance I took out with Warranty Direct a year ago is being cancelled due to the liquidation of LAMP Ins. Co., who underwrite it for WD. Anybody else in the same boat?

As it is protected by the Financial Services Compensation Scheme, I will be refunded pro-rata and paid 90% of what is due. WD has done the decent thing and said that they will refund the remaining 10%.

It does make me wonder if they got caught out by the increasing numbers of write offs of modern cars and their increasing complexity because we don't often hear of insurance companies going bust.

The question might be whether I will be able to re-insure as I have the notion that these policies need to be arranged within a certain time of purchase.

There might well be other companies affected by this as well as WD.

Ernie

 

[John Laidlaw]

Not been affected by this one Ernie but I use EasyGap and have for a number of cars now, be worth contacting them with your situation to see if you can replace the Gap there...
https://easygap.co.uk/1/home

 

[d215yq]

I've never understood how they can legally sell a product that gives financial benefit to having an accident, it goes against how all insurance should work, and incentivises recklessness and even fraud.

I'd personally make it the other way, minimum 5k excess for any at fault claim (including the 3rd party bit) for all insurance. Should make people drive a bit more carefully and reduce premiums significantly.

 

[John Laidlaw]

I've never understood how they can legally sell a product that gives financial benefit to having an accident, it goes against how all insurance should work, and incentivises recklessness and even fraud.

I'd personally make it the other way, minimum 5k excess for any at fault claim (including the 3rd party bit) for all insurance. Should make people drive a bit more carefully and reduce premiums significantly.

I’ve never thought of it in that way before, in my case it’s an easing of the mind should the worst happened through no fault of mine I’d not be disadvantaged.
To me that’s the essence of insurance, I don’t think in fraud terms or even drive or behave recklessly thinking there’s no consequences!
I’d like to think most people are the same - I’m sure on here so, and definitely Ernie!!
Maybe I’m not cynical enough

 

[d215yq]

I’ve never thought of it in that way before, in my case it’s an easing of the mind should the worst happened through no fault of mine I’d not be disadvantaged.
To me that’s the essence of insurance, I don’t think in fraud terms or even drive or behave recklessly thinking there’s no consequences!
I’d like to think most people are the same - I’m sure on here so, and definitely Ernie!!
Maybe I’m not cynical enough

The point of insurance is to put you back to where you were should the worst happen - hence if you have a 3 year old car written off you get another 3 yr old car/it's equivalent value - like normal insurance does - and you are not disadvantaged. At the moment if you crash a 3 yr old car you could be getting up to twice it's value (some cars depreciate 50% in 3 years). I'm not suggesting people will purposefully drive head on into trees to obtain this advantage, but a few may well drive with a little less care.

A fair amount of people will quite often boast about driving company cars/hire cars with less care/less safely than they do their own because it's not them that has to bother with the consequences so it wouldn't surprise me if people are more careless/dangerous with their gap insured cars.

 

[ernieh]

Not been affected by this one Ernie but I use EasyGap and have for a number of cars now, be worth contacting them with your situation to see if you can replace the Gap there...
https://easygap.co.uk/1/home

Thanks, John, I'll give them a call. I suspect, though, if they take the business at all, it will be to the car's current value rather than what I paid for it 14 months ago.

Ernie

 

[John Laidlaw]

Thanks, John, I'll give them a call. I suspect, though, if they take the business at all, it will be to the car's current value rather than what I paid for it 14 months ago.

Ernie

I guess you’re right Ernie but maybe in the circumstances they may do a deal on a slightly higher premium- their normal premiums are hugely competitive though...