Gap Insurance Experts Urge Car Buyers to be Cautious When Buying a Car

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Car Dealer 'Paperwork Adjustments' Could be Putting Thousands of Motorists at Financial Risk, say Gap Insurance Brokers ''.

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Thousands of motorists are unaware of the financial risks they face when their car dealer changes the deal they first agreed at the point of ordering

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According to Gap Insurance experts thousands of motorists are unaware of the financial risks they face when their car dealer changes the deal they first agreed at the point of ordering - without increasing the customers spend.

This industry wide technique can create a financial risk for the motorist. “When a car dealer presents a deal to the customer, they will normally price their vehicle at full retail price and over inflate the customers part exchange value to make the deal look attractive’” said a Car2Cover spokesman.

“At the point of delivery and invoicing, dealers often reduce the sale price of their vehicle and the part exchange vehicle by the same value, leaving the customer to pay exactly the same difference as the original offer and for that reason customers rarely question the technique or indeed consider how that might later affect them”

The spokesman is keen to point out “This industry technique whilst seemingly harmless could impose a potential financial risk. With over 500,000 vehicles every year being written off by insurers, in the event of a write off customers who have accepted this ‘figure change’ will only be paid what is shown on the dealers bill of sale or invoice under a new for old benefit of their policy. In these cases this would be the revised lower figure and this level of insurance settlement may not be enough to enable the customer to replace their car again”

With an increasing number of motorists also choosing to protect their investment with Return To Invoice Gap Insurance, the technique of amending the figures has a longer lasting impact. Gap Insurance is designed to pay the difference between the write off market value and the dealers invoice price, so the practice of reducing the price of the vehicle adversely impacts on what the Gap Insurance will pay for up to 5 years.

Car2Cover advised "if the dealers paperwork changes are unavoidable, customers should consider Vehicle Replacement Gap insurance, an enhanced form of Gap Insurance that will help to pay more than the original car price if it needs to" sound advice it seems.

“Customers should carefully consider the potential negative impact this simple ‘figure amendment’ might have – before agreeing to the change” said “It might appear to have no consequence at the time but in many cases it could cost the motorist hundreds if not thousands of pounds” are calling for dealers to refrain from adopting this technique and consider and explain to their customers what the potential risks might be. was founded in 2007 to offer private and business motorists with a range of supplementary motor insurance products such as Gap Insurance, and Tyre Insurance. Their web site offers a wealth of information on the ‘not so obvious risks’ associated with motoring. Car2Cover are Authorised and Regulated by the Financial Services Authority.

To learn more about Gap Insurance, visit

If you would like more information about this topic, or to schedule an interview, please contact Tom Barley on 01438 728959 or email [email protected]

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Elaine Scott
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