Mind The GAP Confusion

Johno96

We've just bought a new car on PCP Finance and have been trying to unravel the different disguises of this GAP insurance. The Dealership offering for 'GAP Insurance' is described as a Return to Invoice (RTI) and Financial Short Fall cover. Searches on the web have indicated that this called "Combined RTI GAP Insurance'. In an attempt to shop around and compare prices, I've yet to find an insurance company or broker website that offers retail consumers this kind of policy. Thrown into this mix is another policy type "Vehicle Replacement Insurance' (VRI). It's getting just too confusing. We're hoping someone can help clear the confusion.

In the event of a total loss beyond the first year (on our Comprehensive Policy), what we would like is to have the Finance owing on the car cleared and be in a position, where we started to buy another car to replace it. That is to the maximum deposit to put down on a new car of the same make and model.

Sandtree

Most RTI and VRI policies will include shortfall as standard and will payout the greater of the two in the event of a total loss (for example see https://www.ala.co.uk/gap-insurance/return-to-invoice-plus)

I think your dealership has just made up a new name for something that's standard to make it hard for you to compare prices... over charging isn't as bad as it used to but they are not normally competitive. 

DrEskimo

You want vehicle replacement cover, in case a replacement for the same car and model is more expensive or there is less discount.