One aspect of concern when you buy any insurance policy is clearly the claims process you will encounter, if and when that happens. If you buy a Vehicle Replacement Insurance policy then it may be fair to say that it not only is the most comprehensive form of Gap Insurance, but also that it may be the most complicated. This is why it is imperative that the claims process is robust and defined in your policy terms.
Vehicle Replacement Insurance claims process
It is important to consider that not all Vehicle Replacement Insurance policies may not be created equally, in that some providers will use smaller insurers who may have less resources to process the claim. This could lead to delays, and demands on you that can in turn make the whole process more stressful and time consuming.
For example there are a number of Vehicle Replacement Insurance products that use not only large and stable insurers, but also a specialist claims administrator to handle your claim. In these cases the Claims Administrator has the resources to handle your claim with your insurer, and leave you in the background. These administrators handle perhaps 100,000 claims a year, and therefore have the resources to be able to do this.
If your insurer does not offer this facility then you could be left as ‘piggy in the middle’ and this could cause longer delays, and plenty of frustration on your behalf!
How is your Vehicle Replacement claim paid? You or the dealer?
Vehicle Replacement Insurance cover can differ also with the method of settlement. Most modern designed policies will pay you, as the policy holder, the funds to replace the vehicle. Some other policies follow the trend of older Vehicle Replacement Insurance cover, which were designed for motor dealers. These policies would pay a motor dealer to replace the vehicle for you, giving you far less control on how the vehicle is replaced. Also consider that if the insurer is organising the replacement for you, then this can extend the claims process also.
So as you can see the Claims process for a Vehicle Replacement Insurance policy can be quite different, depending on your insurer.
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There are claims processes that commit to a payment time frame in the policy terms, 14 days is around the quickest we have seen.