Of course when we look at Gap Insurance at VRIGapInsurance.co.uk we may be a little biased on the subject of Gap Insurance. We feel that Vehicle Replacement Insurance is the most comprehensive type of Gap Insurance you can find. If you can protect both the depreciation on your current vehicle, and the cost of replacing it with a new one, then VRI Gap Insurance can tick all the boxes.
However, there are other types of Gap Insurance, and in certain circumstances they could even provide a better solution than replacement gap cover. So what are they and how do they work?
Other Types of Gap Insurance
If someone was to ask you ‘What is Gap Insurance?, then how would you answer them?
In fact there is not one simple answer to that question as there are several types of Gap Insurance, each providing specific and different levels of cover.
Contract Hire Gap Insurance is specifically designed for lease agreements where you do not have the option to purchase the vehicle at the end of the agreement. As you can never own the vehicle, then you are not liable for anything other than its market value, and the outstanding rental payments on the agreement. This is what contract hire gap insurance cover is designed to do.
Our sister site ContractHireGapInsurance.org.uk can provide more information on this style of cover.
The ‘retail’ styles of gap insurance include finance gap insurance, to cover the shortfall between the vehicle market value and the settlement on the loan for the vehicle. Return to Invoicecan protect you back to the original invoice price you paid, so in effect protecting what you have paid for the vehicle in the first place.
Other types of Gap Insurance vs Vehicle Replacement Insurance
Our focus on Vehicle Replacement Insurance is simply because we believe that in protecting both the depreciation on your current vehicle and the increased cost in having to replace it, means you have the ultimate protection available today. This is only our opinion clearly, and it is always for you, as the consumer to decide