The market for guaranteed asset protection (GAP) insurance is growing. You must be sure that your management controls and training for the selling of GAP insurance products is comprehensive enough to ensure that your customers are treated fairly.
We require those who sell it to know the product’s limitations and applicability to a particular customer’s needs. Your firm’s management must ensure that:
• They are clear about advised and non-advised sales; • Customers understand the product and any jargon used; • That it is made clear to customers that GAP insurance only provides cover for financial loss after any payout from the customer’s primary comprehensive insurance policy; • It is made clear to the customer how the insurer calculates the payout – this includes knowing what optional extras purchased alongside the vehicle might be excluded and how the provider interprets Glass’s Guide valuations; • Customers are made clear that this is an optional purchase. GAP should not presented as a compulsory feature of a vehicle finance deal; • Customers are given a clear outline of how to make a claim; • Customers are not pressured into a purchase; and • It is clear customers have a 14-day cooling off period.