What is deferred vehicle replacement Insurance?
Why is deferred vehicle replacement so different?
Why do you need to think about deferred vehicle replacement insurance as an option?
Over the last few years the insurance industry has evolved. With recommendations and directives from bodies such as the Association of British Insurers, we have seen insurance protection geared towards the ethos of ‘treating customers fairly‘ . This means that insurers should try to make their cover offer proper value for money, and provide worthwhile protection at the same time.
What has this meant in the world of Gap Insurance and why is deferred vehicle replacement cover changing the way we protect ourselves?
Well in times gone by Gap Insurance policies have not provided customers with refunds, if they cancel prior to the end of their policy period. This meant that a customer may have bought a three year policy from a motor dealer, and sold the vehicle after 18 months with no refund for the remaining time. Hardly good value!
Another aspect comes with the purchase of many new cars. In lots of cases you will find that a motor insurance policy will provide a customer with a replacement vehicle if they suffer a write of in the first year (usually). By purchasing a Gap Insurance policy at vehicle purchase then the customer could in effect have ‘double cover’ if their motor insurance provides replacement cover too.
Again hardly good value!
The answer is to defer the start date of your Gap Insurance policy,( deferred vehicle replacement ) but not many policies allowed for this feature in the past. With the evolution of ‘treating customers fairly’ then most large insurers now have this facility in place.
Deferred Vehicle Replacement Gap Insurance
In terms of Deferred Vehicle replacement Insurance then the position is a little trickier. Only a handful of online brokers provide deferred vehicle replacement. Some will charge you extra for the option to defer, some not.
The longest deferred vehicle replacement policy available in the UK is for 4 subsequent years after your initial year on your motor insurance. This option is provided by the likes of EasyGap and GapInsurance123 (both highlighted in the Which Report into Gap Insurance in 2012).
Who is the best to go with if you want to buy deferred vehicle replacement? Well GapInsurance123 tend to be a little cheaper, but EasyGap does allow you to transfer your remaining cover for free, whereas there is a small charge with Gap123.