One question that we are often asked regarding VRI Gap Insurance, is whether you can get Vehicle Replacement Insurance on a car that is not new?
Well the simple answer is yes, depending on where you look.
Vehicle Replacement Gap Insurance just for new cars?
Some Gap Insurance providers only allow you to place Vehicle Replacement Insurance on a brand new vehicle, within 45 days of its first registration. However, others can offer Replacement Gap for vehicles up to 8 years old and up to 80,000 miles on the clock.
So if you can get VRI Gap for used cars, the second question is it a better to have Return to Invoice, or is VRI a good option?
This is a fair question to ask, as the premise of the cover is to protect back to the replacement cost of the car. On new cars the price we pay can go up significantly for equivalent models, but remember the price of new cars merely set the precursor for the prices of used cars. If new car prices go up, then the price of a used car is likely to follow proportionally.
So if you buy a used car for say £10,000 that is one year old with 8,000 miles on the clock., and that vehicle is stolen in 3 years time, where would it leave you?
If you looked to replace the vehicle, then you could find that to buy the equivalent vehicle, that is another 1 year old, 8,000 mile model, may be much more than the original £10,000 you paid. In this case Vehicle Replacement Gap Insurance can pay this difference, whereas Return to Invoice will only pay back to the original price of your first car.
Vehicle Replacement on a used car
One other aspect to remember is to check on how your vri gap insurance policy would pay you. Some will pay the customer direct, leaving you to replace the vehicle. Some will pay a nominated motor dealer, who will replace the vehicle with the equivalent model.
Be sure to consider which was is best for you, and then the choice of VRI Gap Insurance for your used vehicle will be much clearer.