GAP insurance sales rules change 1st September

The Financial Conduct Authority are introducing new regulations from September 1 that will require any car dealership or finance broker that also sells GAP insurance to provide their customers with "prescribed information" at least two clear days before they can finalise the insurance contract.

However, customers will be allowed to request to waive the two clear days requirement and purchase their GAP the day after the prescribed information is given.

What does it mean for me?

In reality the change in regulations may have a small impact on the car buying process, but it should make clear the cost of GAP insurance.

The prescribed information will clearly state the amount you are paying for your GAP and whether purchase of the product is a required part of the finance deal.

This means you will have the information you need to shop around for a better quote. Online GAP insurance providers are often significantly cheaper.

You can get your free quotes on GAP insurance from MotorPocket.com.

What is GAP insurance?

GAP insurance provides cover against the risk that if your car is stolen and unrecoverable, or written off, that your motor insurer's settlement is less than either:

- Your finance outstanding or lease termination charge

- The original purchase price

- The cost of an equivalent brand new vehicle

depending on policy type chosen.

For more information on GAP insurance read our FAQs here.