Vehicle replacement is quickly becoming the most popular form of gap insurance.
It vehicle replacement insurance still however very mis-undertood.
Vehicle replacement gap insurance pays the difference between your vehicles valuation on the day it is written off and the amount of money you would need to spend to buy another vehicle the same age , mileage and condition as yours was on the day you 1st drive it homes form the dealership, even if the price has gone up.
Vehicle Replacement Insurance really is inflation and price rise proof.
Fantastic! Well perhaps!
Did you know that the world of gap insurance is effectively spoilt into two halves when it comes to vehicle replacement insurance.
Most insurance companies see vehicle replacement as a physical replacement. So you need to make a claim on your vehicle replacement policy and where ever possible the insurance company physically drives another vehicle exactly the same and delivers it to your drive way.
The other world of gap insurance instead treats the vehicle replacement claim slightly differently and instead pays you and funds.
Now there is absolutely nothing wrong with either type of policy as long as you know which type your gap insurance supplier use.
Some members of the public really like the idea that if something goes wrong and their vehicle is written off that they don’t have the hassle of trying to find another vehicle and instead it is delivered.
Other members of the public prefer that they are paid the funds. After all you may not want exactly the same vehicle again, you may want something completely different, you may not even want a vehicle you might want to run off to the circus. What ever you want to do with the money it is your choice. Your money, your choice and your decide based on what is best for you at that time.
As we have always said we are all different and want different things and that is all good.