Vehicle Replacement Insurance for new car - worth it??

Aphidman

Hi,

bought a new car today !!!?!?!?!?

The dealer offered VRI at £299 - which I thought was a bit steep.

Would you get it ? Thr insurance basically covers any shortfall from the car insurance company if it was written off or stolen so meaning I,m not left with payments outstanding on the car.

I think they are trying it on - however, are there cheaper options??

daveyjp

Its called GAP - plenty of threads on here about it. If you want it buy it online, or at least get an online quote and get your dealer to beat (not match) it.

If you are the first registered keeper your fully comp insurance should replace a new car with a brand new replacement if it is written off in it's first (and sometimes 2nd) year.

Mikeyorks

Doesn't sound as though you are describing VRI ..... which gives you the difference up to the current purchase price of the new car. Sounds more like RTI which gets you back to what you paid? VRI understandably being the more expensive .... and dealers would normally ask more than £299! I was recently quoted £399 for RTI on a new car.

Try this site for quotes if you're interested - they will normally beat a dealer price by a margin. But if you do decide to buy - then go via Quidco and you'll get an extra £22.50 refunded.

http://www.click4gap.co.uk/products.asp

turner_chris1

£299 is too much

I have quote for 5000 car 3 years for about £94

:j

Carbuyer100

There is a lot of confusion between VRI (Vehicle replacement insurance), BTI (Back to Invoice Insurance) and RTI (Return to Invoice Insurance) and many dealers sell VRI although it is actually BTI/RTI

BTI and RTI and basically the same product. They take you back to original purchase price in the event of a total loss. Simple:- You pay £10,000 for a car, have a total loss and between your general car insurance and the gap insurance you will recieve your £10,000 back.

VRI insurance is more appropriate from new cars. If for example you buy a car with a list price of £12,000. With a bit of haggling you get £2000 discount thus paying £10,000. In the event of a total loss lets say in 2 years time the discount is no longer available as the special offer has finished. Also the car has gone up in price to £13,000. In effect it will cost you an extra £3000 for the same car. VRI brings you up to the £13,000.

I also found out during my research some policys do not cover you if your house is broken into and the keys stolen so BEWARE.

If its any use I found the chaps at ALA Insurance www.ala.co.uk very helpful and their prices are good but there are dozens of providers out there.

Regards Carbuyer100

Carbuyer100

Just a quick addition to the above. ALA insurance www.ala.co.uk have just contacted me with a promitional code giving discount. It's intended to be used by friends of existing customers. As we're a firendly lot here I thought I'd share it. Code is PRM1053 please feel free.

insurancemaniac

Your fully comp insurance does not normally provide gap insurance, unless they explicitly tell you in writing otherwise. Your new car replacement product which is embedded in Fully Comprehensive Car Insurance will more often than not have small print which states that the estimated value of the car you have just bought is taken from the cars market value on the day the claim is made and that means they take new car depreciated in to account on that payout!

Everyone wants you tho think its full cover, but its not really that simple. Hence gap insurance companies like click4gap.co.uk and surfandprotect.com have found an excellent GAP in the market with their vehicle replacement products.

I have actually consulted for Click4Gap in the past and they have already have one of the lowest prices online but they are also currently offering a further discount if you use the code "First700"

Always investigate and buy as your needs dictate, there are too many sheep in the world