Vehicle Replacement Insurance

Vehicle Replacement Insurance or VRI Gap Insurance is possibly the newest form of Gap Insurance available in the UK today. It is also fair to say that it may be the most populsr choice for customers to the EasyGap and GapInsurance123 websites. However, what is Vehicle Replacement Insurance and how does it work?

Vehicle Replacement Insurance will cover between the vehicle market value and the cost of replacing the vehicle with the equivalent model in the future. This is still true even if that is more than the original invoice price you paid.

Why Vehicle Replacement Insurance?

The premise behind the development of Vehicle Replacement Insurance is that vehicle prices do rise. The list price cost of a VW Golf GTI tdi in 2007 was around £20,000, in 2011 the list price was around £24,000.

So what can VRI Gap Insurance do for you?

So with a Vehicle Replacement Insurance policy, in the vent of a ‘write off’, you are protecting the potential depreciation of your current car AND the inflationary cost of having to replace it.

The normal alternative to a VRI Gap Insurance policy is a Return to Invoice type cover, and with RTI you are simply getting back the original price you paid. Would this figure give you the money to replace the vehicle?

Which Vehicle Replacement Insurance policy?

When comparing EasyGap and GapInsurance123 policies, there are normally a few differences in policy features, mainly minor. However, there is one fundamental difference between an EasyGap VRI Gap Insurance policy and the GapInsurance123 equivalent. This is in regards to how the policy is paid in the vent of a claim.

An EasyGap Vehicle Replacement Insurance policy will cover the difference between the vehicle market value and the cost of the replacement vehicle. Any claim is settled by paying a nominated dealer to physically replace the vehicle for you, so in the literal sense, Vehicle Replacement Insurance. This method os settlement is in common with the vast majority of Vehicle Replacement Insurance policies in the UK marketplace.

With GapInsurance123 the story is a little different. With a GapInsurance123 Vehicle Replacement Insurance policy, the underwriting insurer will pay you, as the policyholder, the funds to replace the vehicle. This means that is you wish to have the equivalent vehicle, as you have the funds to do so. However, if you do want an alternative vehicle, you have the funds at your disposal to spend as you wish.

Both policies are available for cars, vans, motorhomes and motorbikes, all with no premium uplift for the higher risk two wheel vehicles.

If you have a a private hire taxi or a driving school vehicle, you will be pleased to know that GapInsurance123 does offer cover for these vehicles too. Also Vehicle replacement Insurance on GapInsurance123 is available for up to 5 years.

In a price comparison undertaken by Which magazine in February 2012, GapInsurance123 produced the best price for VRI Gap Insurance in the UK for all quote parameters.

Vehicle Replacement Insurance as Easy as 1-2-3

 

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