VRI Gap Insurance – What’s in a name?

Vehicle Replacement Insurance, or VRI Gap Insurance, can protect you in ways that other types of Gap Insurance cannot. We have also discussed that not all VRI Gap Insurance policies will protct you in the same way either. It is ultimately important to check the policy terms and conditions to see exactly how you are covered.

What about all these other styles of ‘gap insurance’ you hear about? Why so many different names, what do they do and are any of them actually the same? We came across a discussion on a forum which included a few posts from a disgruntled Gap Insurance customer. It highlights the fact that he believed he had one form of Gap Insurance, when in fact he had another totally different product.

Here is our brief rundown of the names we have come across, but please ensure you check the policy detail to ensure you are covered as you think you are.

Gap Insurance product names

Lets start by grouping together some product names we have come across for one of the most populat style of Gap Insurance, to take you back to the original invoice price you paid.

Return to Invoice, RTI Gap Insurance, Invoice Gap, Purchase Price Protection, Back to Invoice, BTI Gap Insurance – these are all names that we have seen that can be used to protect you back to the original invoice price you paid.

Here is where it gets tricky though, we have also come across ‘Vehicle Replacement Insurance‘ being used for a Gap Insurance product that takes you back to the original invoice price. Lets be clear here, nothing wrong with that, but the VRI Gap Insurance we talk about on this site would take you back to the replacement cost of the vehicle, even if that was higher than the original invoice price you paid.

Finance Gap, Finance Shortfall, Contract Hire Gap Insurance, Lease Gap Insurance- all variants of the same product that simply protects the difference between the vehicle value and the outstanding finance settlement on any hire purhcase or lease agreement.

Gap Insurance by any other name

Which Gap Insurance do you have?

Vehicle Replacement Insurance, VRI Gap Insurance – not withstanding the use of this phrase as described above, the vast majority of products with this titla will protect the differnece between the vehicle value and the cost of replacing the vehicle with an equivalent vehicle. So if you have bought a brand new Vauxhall Astra 1.6 Petrol top of the range, then the equivalent top of the range, brand new Astra in the future. This is even if the vehicle replacement price is higher than the original invoice price you paid.  

Agreed Value Gap, Shortfall Insurance, Return to Value, RTV – this protects the difference between the vehicle value and the value of the vehicle on the day you buy the policy. This can be used if you have not purchased the vehicle from a dealer, bought it privately or from an auction. The ‘value’ of the vehicle is usually defined by either Glass’ Guide or Parkers Guide. It is importnat to check how your vehicle will be values by this cover.

Gap Insurance product name confusion

So as you can see, the product names can give rise to some confusion. You may be buying Return to Value when you thought it was return to Invoice, or your Vehicle Replacement Insurance only covers the invoice price, etc. These mistakes can be avoided by simply, and carefully checking the product policy terms and conditions.

Whats in a name? With Gap Insurance quite a lot actually!


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