The Financial Conduct Authority have released details of new rules that will come in to force in September 2015. These rules are specifically aimed at companies who provide Gap Insurance as an 'add on' to the sale of a motor vehicle. Of course, although the new rules may not effect 'stand alone' providers such as GapInsurance123, the new rules are aimed to provide better competition in the market place, something that we welcome.
The new rules will see an 'Add on' provider, normally a motor dealer, having to take to:
-
provide customers with prescribed information to help them shop around and be more engaged when making decisions about purchasing the product
-
introduce a deferral period, which means GAP insurance cannot be introduced and sold on the same day
This means that customers will have the opportunity to check alternatives, and consider all their options before making a decision on Gap Insurance. The FCA have raised concerns that the current system provides little opportunity for customers to do this.
We welcome any mechanism that promotes competition and consumer awareness. We are sure that the consumer will benefit from the implementation of these new rules also.
