Return to invoice /Vehicle replacement Ins.?

Millerdog

Hi, I confess to having posted this on the Insurance forum without getting any useful replies and hope that you guys would be more knowledgeable. I was lucky enough to have been able to purchase a brand new car on !st March but am bemused as to how I should insure my 'investment'. The dealers website/ literature shows OTR price as £12150. My invoice is for £10250 sale price less £2000 for Scrappage.ie Price paid £8250. I paid in cash to dealer but have an £8000 bank loan. What type of cover should I take out and how much for? I know cars devalue as soon as they are driven out of showroom. Your help and reasoning of why ( I admit to being a bit dim!) would be much appreciated. Thankyou.
p.s. I have fully comp Ins which offers a new car if mine is written off in first 12 months but its renewal date is June.

Hintza

Millerdog wrote: »

but its renewal date is June.

I was going to cover the 12 months point. But I do wonder what happens if you change to another insurer.

I haven't used any of these policies but someone will point you in the right direction soon.

dacouch

It does not matter if you change to a new Insurer assuming the new Insurer give new car replacement as some companies eg Admiral don't offer it

If you change to the NFU at renewal (They are not cheap) they give the new car replacement for two years from new for the first owner

Iand1

Friend of mine took out RTI insurance (return to invoice) @ £399 a few years back. 3 years cover etc.

1 year in, someone whacks he's car outside his house, he got his normal car insurance money and then the other RTI insurance paid him the difference between the two.

He put it down to the best £99 he ever spent, but how many people end up actually claiming on this... I wonder.

chieffy72

Take out RTI (GAP). It's worth it's weight in gold,£399 is probably a bit steep,go back to your dealer and see what he'll do it for. He/She has a legal obligation to offer it to you anyway at point of sale.

dacouch

chieffy72 wrote: »

Take out RTI (GAP). It's worth it's weight in gold,£399 is probably a bit steep,go back to your dealer and see what he'll do it for. He/She has a legal obligation to offer it to you anyway at point of sale.

The dealer would normally be the most expense place to buy this type of insurance

chieffy72

dacouch wrote: »

The dealer would normally be the most expense place to buy this type of insurance

Yeah,you're right,I work for a dealer and we usually charge £299,like I say,ask if they'll discount it a bit,dealership management are currently obsessed with selling GAP,if not.try online.

Millerdog

Thanks to all replies. I have spoken to dealer who quoted £369 so will check out alternatives on line. Also will make sure that new insurer offers 1st year new car replacement cover. Am I right in thinking that the figure I base my quotes on is £10250 as on my invoice?

dacouch

It is the figure but check with each of the companies you get quotes from as a lot of the companies have not adapted their policies to take into account the scrappage deposit. So make sure they will take the scrappage deposit into account, preferrably get them to confirm this in writing, don't just rely on them telling you as this is can cause problems if they tell you the wrong information

Millerdog

Thankyou for your kind advice. I will make sure that they are aware of scrappage deposit when obtaining quotes. I assume that it would be just like part exchange allowance and they would hopefully treat it that way.