What is Return to Invoice gap Insurance?
Return to Invoice insurance is the most common form of gap insurance offered by UK main dealers.
Standard gap insurance pays the difference between you vehicles valuation on the day the it was written off and the invoice price you paid.
For example you buy a vehicle for £18,000.
Three years later your vehicle is stolen and written off.
Your own insurance company offer you the market value of £10250.
Your return to invoice gap insurance policy would then pay the difference between the £10250 and the invoice price you paid. This means that you how have ll your money back.
- Is the purchase price capped by a guide price?
- Does the policy cover non transferable warranties?
- Does the policy charge you an excess?
- Does the policy cover paint protection?
- Is your gap insurance policy transferable?
Variations of return to invoice gap insurance include
- Combination return to invoice – this is a marriage of finance gap and standard return to invoice. This poliycy would pay the difference between your vehicles market value and either the amount outstanding on finance or the invoice price which ever is the higher.
- Deferred return to invoice- this is the sames as combination return to invoice but allows you to pre date the policy to start at the end of your own motor insurance companies new for old cover ( up to a maximum of 12 months)
So is return to invoice gap insurance the best solution?
Perhaps depending on what you want your policy to do. Don’t forget that you are protecting the invoice price you paid. From the amount you will still have to settle any finance. The equity, the chunk in the middle is then yours to do with as you see fit!
So why not Google return to invoice gap insurance get a quote and make an informed choice.