Have you ever heard of VRI Gap Insurance on a taxi before? Well we came across a private hire driver in Liverpool who was glad he did! Vehicle Replacement Insurance will cover the difference between your vehicle market value and the cost of replacing the vehicle with the same model. So if you bought a VRI Gap Insurance policy for a brand new Skoda Octavia, then you would be covered to the cost of another brand new Skoda Octavia.
VRI Gap Insurance on a taxi
Recently we heard from a private hire taxi driver in Liverpool who had bought a Skoda Octavia from a local dealer. He explained that he had got a great deal on the car, equivalent to a ‘VAT Free’ discount on the car. His dealer had offered him ‘Taxi Gap Insurance’ which he understood at the time was for return to invoice type cover. The dealer price was £499 for 3 year cover.
He then went home and searched the internet for Taxi Gap Insuranceand came across a couple of companies offering the cover, at a vastly reduced rate than the dealer. He then set about calling up for quotes, and taking to the various Gap Insurance brokers over the cover.
He then discovered that he could take VRI Gap Insurance or Vehicle Replacement Insurance for his taxi, meaning that if the Taxi was written off, and he could not secure such a heavy discount as he got on his car, he could still get the funds to replace the vehicle with the brand new equivalent Skoda.
How VRI Gap Insurance on a Taxi can help
The taxi driver only had the vehicle a matter of months, when he was involved in a crash. He and all others in the incident were ok, but his vehicle was a ‘write off’. His insurance company duly paid the market value of the vehicle, but this left him some £3,000 short of the original price he paid, and £5,000 short of replacing the vehicle. Fortunately he had taken a VRI Gap Insurance policy for his taxi, and he got the £5,000 he needed to replace his vehicle with a new one.
Needless to say he took another VRI Gap Insurance policy on his new Skoda!