Difference in GAP Insurance

Wammer

I have just ordered a pre-registered car that I will be collecting at the end of January. It will be bought outright with no finance.

The dealer tried to sell me Vehicle Replacement Insurance, which I have never considered before, and I as seriously considering getting it, but not from the dealer.

I've had a look online, but the more I read the more confused I become. I've so far looked at ALA and Click4Gap.

I don't think I want Return to Invoice as I have made a considerable saving getting pre-registered instead of brand new.

Can someone explain the difference between Vehicle Replacement Insurance and Return To Value Insurance? VRI is for cars owned up to 3 months and for RTI they have to have been owned for more than 3 months.

I would also appreciate any advice on what to look for in the policy and any exclusions I should be looking for.

I have done a search on here and read previous topics, but still have the above questions.

Thanks in advance.

Nearly_Old

We were in a similar position 4 years ago - 6 month old car 1600 miles on the clock and we paid £X (30% less than the new OTR price) outright. The problem we found is that (all?) insurances are designed to put you back in the position you were in; i.e. we could insure £X but not the full new OTR price. IIRC the dealer wanted around £650 to insure £X but we argued that the car would always have some value and therefore it was not necessary to insure the full amount.

In the end we assumed 50% depreciation over 3 years and insured 50% of £X for 3 years on a Return to Invoice policy that we got off the internet for £149. The risk being that the actual depreciation would be greater than 50% and if so we would be out of pocket.

Wammer

Thanks

I have looked a bit further and found a comparison on Click4Gap. They only cover RVI for cars up to 3 months old and this one will be 4 months from date of registration. I am now looking at Car2Cover which looks like it might cover this car.

I would really appreciate any pointers in what I should be looking for in the policy or exclusions I should be aware of.

Kilty_2

I bought a brand new Kia Picanto in March, at 74% of list. Took out Replacement Vehicle Insurance for similar reasons to you but obviously it was brand new so I had no trouble over age.

BJV

Wammer wrote: »

I would really appreciate any pointers in what I should be looking for in the policy or exclusions I should be aware of.

There are a couple of suppliers to look at EasyGap.co.uk, Gapinsurance123.co.uk and DirectGap.co.uk, Surf&Protect.co.uk as well.

Return to invoice will protect the invoice price you paid. A top tip is to check that this is not limited by a % of Glass's Parker's or what ever guide.

Vehicle replacement will cover the replacement cost of a replacement car which is the same age mileage and condition as yours was on the day you bought it.

When it comes to policy exclusions check that it covers dealer fitted extras such as mudflaps, mats, even tow bars as these are expensive and not having them covered can leave you out of pocket.
Check also for non transferable warranties or paint protections again this can leave you out of pocket.

Also check who gets paid. Some insurance companies pay a nominated dealership some pay you directly. Some people like the idea of not having the hassle some like the idea choosing themselves.

It is what ever is best for you.

Before you buy why not check if your insurance company offer new for old in the first 12 months ? If they do you may be able to defer the start date and save even more money.

Good Luck:A

rs65

BJV wrote: »

Before you buy why not check if your insurance company offer new for old in the first 12 months ? If they do you may be able to defer the start date and save even more money.

I've only seen that apply when you are the first registered keeper. The OP was talking about a pre-registered car.

BJV

rs65 wrote: »

I've only seen that apply when you are the first registered keeper. The OP was talking about a pre-registered car.

I spoke to someone who bought a pre reg car and they are with an insurance company who offered two years from the date of 1st reg. I am not sure if there where terms and conditions he did say something about a mileage restriction but it worked for him.

Just a thought?:A

Wammer

Sorry for the delay in replying and thanks for the posts.

I am now going to have to look at this more seriously as I get the car in less than 2 weeks.

I have checked and my insurer covers pre-registered cars on new for old basis in the first 12 months from delivery and there is no mileage restrictions mentioned on the policy. That means I would ideally like a policy that I can defer for a year.

I have now looked at Car2Cover and Autotrader, but neither of them defer. I tried to read the policy wording on Autotrader, but there wasn't much of a policy to read which makes me suspicious.

I shall look at the ones mentioned above, thanks for those.

MX5huggy

I would only look at Return to invoice, in my opinion with vehicle replacement there is too much wriggle room for the insurerer, in 3 years time what is an equlivent model if they have stopped making that car? Extreme example but what would a SAAB equlivent model be?

Wammer

I was originally considering RTI, but feel that VRI would be a better option. The car is a new style Ford Focus so they should still be making in the in the next 3 years.

Wammer

ala.co.uk state the following:

We do not have a market value clause on any of our GAP Insurance policies, unlike many of our competitors, who will only pay from the market value

Our policies DO NOT carry a 105-110% Glass Guide value rule. We will underwrite what ever the value you paid for your vehicle – except for negative equity

Why are these important?