When you local dealership said that they had an obligation to talk to you about gap insurance where they really telling the truth!
Does you local dealership really have to offer you gap insurance or is this just some form of a sales ploy?
The answer is simple, if your local dealership is regulated then they are telling the truth they are bound to talk to you about gap insurance, how it works and what it could do for you. Normally this would means that they would simply complete a needs and demands.
A needs and demands statement is simple documents which shows information and recommendations about you and your vehicle and normally you would be asked to sign it to confirm that you understood your options and either decided to buy a gap insurance policy or not as the case may be.
Please remember that in order to be regulated to offer gap insurance can cost a lot of money and not all dealerships will be able to. For example there are a number of very large car supermarkets who will they can offer a multitude of finance packages and cars can not offer gap insurance.
But and this is a big but this is where your dealerships responsibility stops.
Even today some members of the public are still being informed by the dealership that they musty buy gap insurance and worse still that they must buy it from them.
This simply is not true.
So to set the record straight while as you can imagine we think that gap insurance is a good idea no-one can ever make you buy gap insurance.
- No-one can ever make Gap Insurance
- No-one can ever make you buying Gap Insurance a condition of Sale
- No-one can ever make buying gap insurance a condition of you being accepted on finance
So to answer the question yes your dealership has a moral and legal obligation to offer you gap insurance is they are regulated to do so but you do not have to buy it.