VW Gap insurance problem

[Raiden]

Nothing major but unsure what to do.

My wife got a letter in the post about her T5 California's gap insurance. It said the company its with 'enterprise insurance' has gone into liquidation. I spoke to the dealer she brought it from and they said phone this number and they'll will deal with your questions (there not interested) I spoke to them and they said some sort of government backed scheme has taken over the company but will only pay up to 90% of the claim. I asked if I could cancel the policy and find a new one and they have said I can't. Highly unlikely will write the thing off but why should I pay full price and not get what I am paying for? Am I stuck with them or is there anything I can do. Shall I moan at the dealer and say look you sold me the policy so you sort it out?

 

[Sandra]

I would certainly speak to the dealer.

 

[desertstorm]

It doesn't look like that has happened recently.
http://www.fscs.org.uk/news/2016/july/enterprise-insurance-company-plc-now-in-default/
It's difficult for the dealer as they probably offered the service to you in good faith and at least the provider is covered by the FSCS and there will probably be many other people in the same position. They would have made some commission from the sale of the policy though I am sure.
How long ago did you purchase the vehicle?. There are many companies that will provide GAP insurance and you don't have to take it out immediately. Most insurance companies will replace a vehicle that is written off in the first 12 months with a brand new vehicle of the same spec as long as you are the first owner.
So Gap insurance in the first year is pretty much wasted most of the time. I have been looking into this as the wife has just had a new Polo and they offered GAP insurance at £250 which seemed excessive to me as the level of risk seems quite small.
Indeed there are many on line providers who will cover you for a lot less and you can cover a vehicle from the 2nd year onwards if you want to reduce the premium. I suspect that if you are really worried that taking out another policy and cancelling the existing one would be the way to go. And your dealer may make a contribution towards the costs.
http://www.moneysavingexpert.com/car-insurance/gap-insurance
http://www.which.co.uk/money/insura.../gap-insurance/vehicle-replacement-gap-review

 

[Raiden]

Had it just over 2 years now but I am sure its over 5 years shes paying it. I would rather be safe than sorry.

Iv'e emailed the dealer and hopefully they can advise.

Thanks for the replies

 

[EDRIAT]

Had it just over 2 years now but I am sure its over 5 years shes paying it. I would rather be safe than sorry.

Iv'e emailed the dealer and hopefully they can advise.

Thanks for the replies

OK... hold fire...

Firstly, if you financed the GAP insurance premium along with the car, it's almost certain that the GAP insurance insurer was paid in full. So you continuing to pay for it is not an issue in itself.

Secondly, from what I've heard, Grant Thornton (the liquidator who I presume you've received the letter off) has actually made an error in so much that it's only (apparently) Car Insurance policies that have been disclaimed. The logic apparently being that they can disclaim a Car Insurance policy and the policyholder can simply go and buy another policy elsewhere. This doesn't apply with GAP insurance policies though because (as you've discovered) you're no longer able to source cover elsewhere so they need to take a different approach.

I'm under the impression that efforts are underway to transfer GAP insurance policies from Enterprise to another insurer. For example, policies arranged via Motorway Direct (as of 18/11/2016) were still being honoured. See here: http://www.motorwaydirect.co.uk/statement-enterprise-insurance/

You might have bought the GAP insurance policy from the dealer, but they won't be the administrator of it. Who does it say is the administrator of the policy within the policy wordings and have you spoken with them?