Are all VRI Gap Insurance policies the same?

You may have come across the term VRI Gap Insurance when looking for Gap Insurance. However, as many different insurers offer this type of gap insurance, you may be forgiven for thinking that all VRI Gap Insurance policies are the same…….how wrong could you be!

VRI Gap Insurance – what’s in a name?

Many motor dealers offer ‘VRI Gap Insurance’, or Vehicle Replacement Insurance, to their customers. If you have looked at VRI Gap Insurance policies online to compare, you may have noticed one striking difference, the amount thye look to cover.

If you are looking at a VRI Gap Insurance policy from a manufacturer such as Peugeot, or a main dealer group like Arnold Clark, you may well be looking at a type of VRI Gap Insurance quite different to that found elsewhere. Often these types of cover will only cover you back to the original invoice price, and not the replacement cost of the equivalent vehicle. This type of cover is typically called Return to Invoice cover elsewhere.

There is nothing wrong with calling a type of Gap Insurance any title you wish, but it clearly demonstartes how important it is to check how the policy works, not just what it is called.

They type of VRI Gap Insurance we talk about here, is where the insurance will cover back to the replacement cost of the equivalent vehicle in the future, even if that is higher than the original price you paid.

VRI Gap Insurance

Not all VRI Gap Insurance policies are the same

However, even then there can be a difference in how the insurance company will pay you.

How is your VRI Gap Insurance claim paid?

The majority of VRI Gap Insurance policies available online, will pay a nominated dealer the funds to replace the vehicle, and they will provide a ‘like for like’ equivalent model. So if you like, this is ‘Vehicle Replacement Insurance‘ in the truest sense.

However, there are a few insurers who take a slightly different approach. They will pay you, as the policy holder, the funds to replace the vehicle. This means that if you want the same vehicle again, you can. However, if you want a totally different vehicle, then as you have the funds, you can spend them as you wish.

So when you are looking for Vehicle Replacement Insurance check the terms of your policy, not all VRI Gap Insurance is the same!

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2 Responses

  1. April 6, 2012

    [...] VRI Gap Insurance, as we have mentioned before, not all vehicle replacement insurance policies are equal. There may be subtile differences in policy features that may make one insurers cover better than [...]

  2. May 14, 2012


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