Audi at VRI Gap Insurance
The Audi brand is probably the most desirable brand within the UK at this present time and that is why Gap Insurance may well be a tricky subject. There are a number of positives and negatives of owning an Audi model and all of which have to be taken into consideration.
As an Audi model is more popular than the average model, people may believe that it will experience less depreciation, but on the other hand the high value invoice price the Audi may have may leave it more susceptible to higher rates of depreciation. Depreciation is the level at which your Audi model loses value over the course of ownership.
As you may already know, as soon as you drive the car model away from the dealership it will immediately begin to lose value. However, you may not be aware of how much value your vehicle may lose over a short period of time. It is said that your Audi model like that average vehicle may lose up to half of the vehicles original value within the first three years of ownership.
If you were to write your vehicle off or if the Audi model was stolen, that is when depreciation can hurt you. Your comprehensive motor insurer will only cover the market value of your vehicle on the day it was written off or stolen.
How can Gap Insurance help you and your Audi?
For example, if you have purchased a brand new Audi A5 model for somewhere in the region of £50,000, three years later you would only receive somewhere in the region of £25,000 from your motor insurer. This will leave you with a possible gap of £25,000. However, the figures in this example are not accurate and the depreciation rates are based on estimations.
Due to market value depreciation, there will be a financial gap. But, this is where VRI Gap Insurance can help you and your Audi model. Vehicle Replacement Insurance will cover the difference between the market value of your Audi model on the day it was written off or stolen and the average cost to replace the vehicle with the same make, model, mileage and specification as yours was on the day of purchase.