Gap Insurance, and the newest form being VRI Gap Insurance, has traditionally set for up to 3 years. Indeed many motor dealers in the UK still use this as the maximum term available to their customers today. However, many vehicle owners now look to keep their purchases over a longer period, with the economic downturn and higher cost of living.
This has meant that the cost of replacing a vehicle has risen, as new vehicle prices rise with factors such as inflation and VAT increases. So with these factors in mind, insurers had to produce a product to suit the ever changing market.
They came up with VRI Gap Insurance!
So why is VRI Gap Insurance so useful?
Simply put, as your vehicle value goes down and replacing it with a ‘like for like’ model on a ‘new for old’ basis goes up, the ‘gap’ simply grows to the point that a simple RTI Gap Insurance policy may not suit at all. VRI Gap Insurance can cover both the deflation of your own vehicle, and the inflationary costs of replacing it. How? well VRI Gap Insurance covers the difference between the vehicle market value and the cost of replacing it with a ‘like for like’ model as at the time you purchased the policy.
So what can VRI Gap Insurance do if I keep my vehicle longer?
Well VRI Gap Insurance is available from several insurers in the UK, and from a select few online brokers. However, what if you want to keep your vehicle that little bit longer, for example if you have a 5 year finance agreement?
Well, the VRI Gap Insurance revolution is coming!
Due for launch in the next few weeks, leading Gap Insurance provider, Aequitas Automotive Limited, will be able to provide not just VRI Gap Insurance but other forms such as RTI Gap Insurance, for up to 5 years!!
Aequitas Automotive currently run the EasyGap.co.uk website, and are one of the volume brokers in the market. We understand they are due to launch a new website to run concurrently with the current EasyGap site, which will offer complimentary products, even 5 year VRI Gap Insurance!!
Others may be soon to follow, but if Aequitas Automotive provide there usual market leading prices ethos on their new site, it is very likely you can purchase 5 years VRI Gap Insurance cover for far less than your dealer will offer a 3 year RTI Gap Insurance policy.
5 Year VRI Gap Insurance is coming!