BMW have a reputation for engineering. Often called the car for drivers they have an ability to combine drive-ability , comfort and longevity.
BMW’s constant strive for perfection however comes with premium price.
As BMW constantly push the boundaries of economy, performance and comfort and overall improvement the price is more than likely expected to rise over a period of years.
If you are lucky enough to own a BMW and during the natural course of ownership traded your vehicle in for a newer model you would not be surprised to find that the superseding model was more expensive. Don’t forget that external factors can also effect the price that you are asked to pay. Fluctuations in Vat, labour rates, transportation even raw materials means that your new BMW will cost more.
So what does this means for you if you are thinking of protecting your BMW with a form of Gap Insurance?
As you may already know there are different levels of gap insurance and different ways in which to protect your BMW.
Providing that you can own your BMW at the end of your finance agreement or in fact if you have paid for your BMW with your savings then the most popular form of cover to be offered is a return to invoice level.
This means that if your BMW is written off then your gap insurance policy will pay the difference between your Bmw’s valuation on th day it was written off and the original invoice price you have paid.
for the reasons mentioned above this may and often does still leave a shortfall between the price that you will now need to spend to buy another.
This is exactly where vehicle replacement can help as instead of protecting just a financial amount i.e the invoice price you have paid you are now in effect protecting a standard of vehicle.
This is because vehicle replacement insurance will pay the difference between your BMW’s valuation on the day of loss and the amount of money that you will need to spend to buy another BMW the same age mileage and condition as yours was on the day that you originally drove it home from your dealership.
So what if the BMW have upgraded the model?
So what if VAt rates have changed.
With vehicle replacement insurance this is simply not your concern.
In brief you policy will between your two insurance companies pay the full replacement cost of another BMW on a like for like basis the same as yours was on the day that you collected this. From the replacement cost you can then clear any finance if needs be and the balance of the funds is yours to spend as you see fit.
An easy way to think of vehicle replacement insurance for your BMW is that it is almost like return to invoice but with build in inflation proofing.