VRI Gap Insurance seems on the face of it, quite straightforward. There is every chance that the vehicle you buy today will be more expensive to replace in the future, as we all know the prices of vehicles only tend to go in one direction.
So is it fair to assume that all Vehicle Replacement Insurance policies are the same?
Well perhaps in name, but when you get down to the policy features and benefits, there are several differences that could make a sizeable difference both to your settlement, and how you get to spend the money!
Different VRI Gap Insurance
The biggest major difference in Vehicle Replacement Insurance policies in the market is not in any potential settlement, but in how the settlement is paid. Most VRI Gap Insurance policies will seek to replace the vehicle by paying the settlement to a nominated motor dealer, who will then replace the vehicle for you. I guess this is in the strictest sense of the word, Vehicle Replacement Insurance.
However, what if you bought a 4 or even a 5 year VRI Gap policy, and made a claim towards the end of the cover period. I am sure it would be nice to get a new equivalent of the insured vehicle, but really you may like the option of a change too. Would it not be better to have the cash yourself, and get a different vehicle if you so wish?
There are VRI Gap Insurance policies that will pay you the funds to replace the vehicle, meaning if you want the same vehicle again you can. However, if your circumstances change, or your requirements are for a different type of vehicle, then by having the cash yourself you have a greater flexibility in choosing the replacement.
There are not many brand who will do this, but one such VRI Gap Insurance policy that will is from GapInsurance123.co.uk.
Other VRI Gap Insurance differences
One other aspect to consider is what is exactly covered by your VRI Gap Insurance policy. Major differences in terms of your Gap settlement can be found by slight differences on the policy cover. For example, some policies will cover the first £250 of your motor insurance excess, so will not. Most policies will not cover items such as Paint Protection packs, but some will.
If you take a VRI Gap Insurance policy and have an excess on your insurance and have paid for a Paint Protection pack from your dealer, this could mean a potential £500-£750 difference in your Gap Insurance settlement.
Not all VRI Gap Insurance policies are equal!