Vehicle Replacement insurance is one of the gap insurance worlds best kept secrets.
Vehicle replacement insurance is a relatively new form of gap insurance and is now quickly becoming the most popular.
The problem with standard traditional return to invoice styles of cover is that should you need to make a claim two, three or four, or even in some cases five years after your first bought your car you may still not be able to replace it.
Inflation, transportation costs, labour and manufacturing costs all means that car and vehicle prices tend to increase over time. For example if you had bought a Volkswagen Golf Gti three years ago you would have paid in the region of £20100. Four years later to buy the same equivalent car now costs just over £24,000.
This means that even if you had the foresight to protect yourself with gap insurance and got all of your money back you would still not have enough to go and buy another like for like vehicle.
The answer vehicle replacement insurance well possibly
Vehicle replacement insurance pays the difference between your vehicles valuation on the day it was written off and the amount of money you would need to spend to buy another vehicle the same age, mileage, specification and condition as yours was on the day your drive it home from the dealership.
If that vehicle is no longer available then your vehicle replacement policy would pay up to the superseding model.Because vehicle replacement is almost like an inflation busting return to invoice not surprisingly more and more members of the public are now protecting themselves in this way.
Other variations of vehicle replacement insurance include.
- Combined vehicle replacement gap insurance
- Deferred vehicle replacement gap insurance
With online prices for up to five years vehicle replacement insurance cover still a lot less than a standard main dealership quote for three years protection why not click for quote and make real informed choice!