Insurers to Stop Selling Car Price Cover After FCA Pressure
- UK regulator says product currently fails to offer fair value
- Motor finance market is under scrutiny as complaints rise
Photographer: Christopher Furlong/Getty Images
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Multiple UK insurance companies have agreed to stop selling policies that cover declining car values after the Financial Conduct Authority raised concerns about customer fairness.
Insurers that account for 80% of the guaranteed asset protection market have agreed to halt sales, the FCA said in a statement Friday. GAP insurance is typically sold alongside car finance and covers the difference between the car’s purchase price or outstanding finance and its current market value, in the event that the vehicle is written off before the finance is repaid.