Vehicle Replacement Gap Insurance is now possibly the most popular style of Gap protection for consumers buying from online brokers. One of the clear advantages of buying from an independent specialist broker is that you normally will have a much bigger choice of products as opposed to the standard Return to Invoice offered by motor dealers. Now of course Return to Invoice is a perfectly good level of cover, but when compared to Vehicle replacement Gap Insurance, it often does take the role of second choice.
Now if you choose Vehicle replacement Gap Insurance as your preferred level of cover, you could be forgiven for thinking that all cover is just the same, bit again you would be wrong on this assumption.
Vehicle Replacement Insurance
The aim of Vehicle Replacement Insurance is to provide the funds to replace the vehicle with the model equivalent to the one you drove away from the showroom in. However it is how the policy does this is how differences can be seen, and to explain this further perhaps it should be explained how VRI Gap was developed.
The original vehicle replacement products were designed for car dealers, and any settlement to replace the vehicle was paid directly to the dealer who would in turn replace the vehicle for you. Makes perfect sense for the dealer, who has a vested interest in providing you with a new vehicle, a second sale to them! This is why dealers push the likes of Gap Insurance and Tyre Insurance to their customers.
However, this may not be of the greatest benefit to you as the policy holder.
Imagine you take a 4 year VRI Gap policy, and 3 years in you make a claim. At this point you may have already been thinking about changing the vehicle, which may not be totally unsuitable for your needs. However, some VRI products will just provide you with the same vehicle again, albeit the equivalent to your first purchase. This replacement vehicle may not be what you need anymore, and even if you trade it in immediately you may lose thousands of pounds in value.
Vehicle Replacement Insurance that works for you?
Some specifically designed Vehicle Replacement policies, for online specialists, will allow for the replacement funds to be paid directly to you and not the dealer. This means, with the funds in your account, you can replace your vehicle to your requirements and not the motor dealers.
After all, it is you who paid for vehicle replacement policy in the first place!