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manufacturer- Manufacturers such as ‘VAT Free’ deals, Cashback or Finance Deposit Allowances are often changed or even withdrawn by manufacturers.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 a replacement.
The Manufacturer replaces the Model – The ever popular VW Golf GTI has risen nearly 4,000 pounds in the last four years. The model has changes and increased manufacturer charges have increased the list price. When the Vauxhall Insignia replaced the Vectra, the list price rose by more than the VW rises.
External Factors – The VAT rise in January 2011 put approxiamately 500 pounds on a 15,000 new vehicle.
All these factors mean that you could face a shock when trying to replace your vehicle, and you rely on RTI Gap Insurance. VRI Gap Insurance could just be the answer!