When ever you search or buy gap insurance or in fact and type of financial service you are constantly urged to make sure that who ever you are buying your products from are regulated with the financial services authority and that the policy is backed by the financials services compensation scheme.
So do you really know what this means and how it can affect you?
To be able to provide any form of financial service or insurance policy the company you are dealing with has to be registered with the financial services authority. Do not under any circumstances buy any form of finacial service from any company that is not. This is because they may not be legally able to provide the service and the advice or recommendations they give any not be accurate.
After all the FSA ‘s main role in the financial services is to ensure that customers have a transparent way of dealing qwith the financials ervices and that they are looked after both before and after the sale of the products.
Ok so that is the FSA issue answered but what about the financial services compensation scheme?
Well this is very much like the scheme in place for holidays called ABTA. This is because just like ABTA if the insurance underwriters are not able to meet their obligations the scheme is there to take up the shortfall. It is very uncertain times we live in any no-one ever thought that some of the world largest financial institutions would ever have a problem but they did. Even thought the underwriters in most cases are massive multinationals that does not mean that they are exempt from problems so it is important to know that you are protected no matter what the future may hold.