Month: July 2011

VRI Gap Insurance for you?

The newest, and probably most popular form of Gap Insurance in the UK is arguably VRI Gap Insurance. This form of insurance covers the difference between your vehicles market value, and the cost of replacing it on a like for like basis. Make sense? What is VRI Gap Insurance exactly? Take a look at this video So there it is in a nutshell, VRI Gap Insurance can perform like ‘new for old’ on your home contents insurance, providing protection against depreciation, and also inflationary factors too. So would VRI Gap Insurance suit you? Well, you would first need to see whether the insurer would cover your vehicle for VRI Gap Insurance. Usually, vehicles would need to be new or nearly new to qualify for the cover. Cars, as well as motorbikes aand commercial vehicles can find VRI Gap Insurance cover in the marketplace. Many factors can favour Vehicle Replacement Insurance over other types of gap insurance, such as RTI Gap Insurance or Finance Gap Insurance, such as: You have got a ‘transient’ deal from the manufacturer- Manufacturers such as ‘VAT Free’ deals, Cashback or Finance Deposit Allowances are often changed or even withdrawn by manufacturers. Imagine you got a few thousand pounds discount, and a year later you had to pay list price if it was written off. RTI Gap Insurance could leave you well short of paying for...

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Do I have to have Gap Insurance?

Is Gap Insurance requirement for vehicle  purchases in the UK? No! Simple answer to a simple question, but it is one that is often asked. In the ‘dim and dark’ ages of car sales, Gap Insurance was often assumptivily included in deals on the basis that customers would want it (and dealers made a healthy profit!). So if Gap Insurance is not required by law why do dealers offer it? Well firstly, Gap Insurance could benefit you if your vehicle is written off. Therefore as they are aware of it they should tell you about it. In fact, with the complications of...

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Which type of Gap Insurance do I need?

So you like the idea of gap insurance? After all, there are not many vehicles that will not suffer from significant depreciation over a period of time. A written off vehicle can present all kinds of financial headaches, even though you have fully comprehensive motor insurance. Remember your own motor insurance only pays the vehicle market value at the time it is written off. This can be thousands short of the original purchase price, or the amount required to pay off any finance, and then you have to find the means to replace the vehicle! So we understand that Gap Insurance can help with this, but do you want finance gap, RTI Gap Insurance, VRI Gap Insurance, or even a combination of them all? The first question is simple What do you want to cover with Gap Insurance? There are 3 basic options: – the outstanding amount on finance – if you have a finance agreement on the vehicle you may owe more on the settlement than the vehicle is worth when it is written off. Without this type of cover you may be liable for the difference. – the original invoice price you paid- that is the original price you paid, including deposit, part exchange and a financed amount. – the cost of replacing the vehicle ‘like for like’ – if you want the same standard of vehicle...

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