As Gap Insurance has evolved as a product then you can see a number of providers adopting ‘best practice’ when it comes to Vehicle Replacement Insurance policy features.
This means that most policies can offer an option to defer, transfer and cancel your policy, as well as a host of popular dealer options like Paint Protection costs being covered also.
This has seen a number of the better vehicle replacement insurance products in the market adopting almost universal product terms, and this can make it difficult to choose between them at times. That is certainly the case with Finance, Contract Hire and Return to Invoice products in the market today, however there is one particular product that is extremely popular with new, and nearly new vehicles, whereby this may not be the case.
Vehicle Replacement Insurance, or VRI Gap Insurance, can cause a great deal of confusion with consumers, possibly because of the varied ways in which different providers would settle a claim.
- There are some motor dealers, and some online providers, who market ‘Vehicle Replacement Insurance’ that will cover only back to the original invoice price paid. This, of course, can be compared to the Return to Invoice products offered by most online brands.
- There are some vehicle replacement insurance products that are actually could settle you claim in one of two ways. Either they would provide cover back to the original invoice price (just like Return to Invoice), or they may simply provide you with a replacement vehicle. It may not be abundantly clear exactly which method may be used, so either you may see a direct replacement or the original purchase price back.
- By far and away the best form of Vehicle Replacement Insurance in our view, is the style whereby the insurer pays you, as the policyholder, the funds for the replacement vehicle. This means you have complete control in how you replace the vehicle, if you want the same vehicle again then you can, but if the situation is now that you need a bigger car then you can use these replacement funds as you see fit.
This is the most flexible approach, and is adopted by a number of the leading vehicle replacement insurance online providers today. Be warned though…………..not all!