What is Deferred Return to Invoice Gap insurance?
What is the difference between a standard return to invoice?
When should you consider deferred return to invoice gap insurance?
When you buy a new car depending upon your own motor insurance company you may be offered a new for old replacement style of cover within the first 12 months. This is almost a perk of buying a new vehicle. In fact this used to be almost a standard feature.
Rising costs means that not every insurance company still offers this feature and if they do there may be terms and conditions such as mileage restrictions.
That said if you are lucky enough to use a company that still offers this feature the temptation is simply to wait until then end of this cover to protect yourself with return to invoice gap insurance. The problem is that if you do the type and level of protection available to you as you have now owned the vehicle for over the magic 180 days is inferior. What we mean is that you can no longer protect the invoice (return to invoice gap insurance) or replacement cost ( vehicle replacement insurance) and instead your vehicle is re-valued on the day that you buy the policy and what ever that valuation is is the only amount that you can protect. As the average vehicle does the highest percentage of depreciation within the 1st twelve months you can imagine that the difference can be massive.
Ok so the alternative is to buy a return to invoice gap insurance. But surly if you buy a standard policy you are in effect paying twice for the 1st years cover. I think you will agree not a fantastic situation pay twice or accept inferior levels of cover.
At last there is alternative. Deferred return to invoice gap insurance acts in exactly the same way that a standard policy would the only difference is that you can predate the policy to start for up to 12 months in advance. So now you can have the best of both worlds. Enjoy the higher levels of cover and not pay twice.
So is deferred return to invoice gap insurance the best solution for everyone?
Possibly but again remember that you will need to check with your own insurance company and be totally happy with any terms and conditions they have for their new for old cover.