UK insurance companies stop selling GAP insurance due to FCA concerns about customer fairness and low claim rates.

Multiple UK insurance companies have agreed to stop selling GAP insurance policies that cover declining car values after the Financial Conduct Authority (FCA) raised concerns about customer fairness. GAP insurance, which covers the difference between the car’s purchase price or outstanding finance and its current market value, is typically sold alongside car finance. The FCA stated that only 6% of the amount customers spend on premiums for the insurance is paid out in claims.

February 09, 2024
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