Most importantly what can VRI Gap Insurance do to help you?
Vehicle Replacement Insurance is the latest, and possibly most comprehensive level of Gap Insurance available in the UK today.
Simply put, it pays the difference between you vehicles valuation when it becomes a 'total loss', and the amount of money you would need to spend to buy another vehicle the same age, mileage and condition as yours was on the day that you originally collected it from your dealership, or the amount outstanding on finance which ever is the higher.
Therefore if the vehicle was brand new when you bought it, then the replacement cost is based on the brand new equivalent. If the vehicle was 2 years old, with 15,000 miles on the clock then the settlement would be made for the equivalent 2 year old, 15,000 mile equivalent at that point.
Why is this different from say Return to Invoice? Simply because the cost of the replacement model may be higher, perhaps thousands of pounds higher, than the original price you paid. If you have a 'bargain' priced deal, then to replace the vehicle in the future then it could be that you cannot get the same deal again. If you take Return to Invoice then this could leave you well short of covering the cost of replacing with the same standard of vehicle again.
Why could Vehicle Replacement Insurance be the best level of Gap Insurance for you?
Vehicle replacement is unlike any other form of gap insurance as instead of simply protecting a fixed amount such as the invoice price you paid or even the amount that you have borrowed your are instead protecting a standard of vehicle.
You may not want to think about it however, it is a sad fact of life that vehicles lose value over time and just as your is depreciating the cost of another vehicle the same as your was is appreciating.
Model upgrades, technological advances, vat changes, labour and raw material costs means that chances are if you wanted to replace your vehicle with another it will cost more.
Please also remember that not all vehicle replacement policies are as comprehensive as our's so before you consider vehicle replacement why not click or call 0800 195 4926 where a member of the team will be only to happy to help you understand what vehicle replacement could do for you and your gap insurance options.
We work really hard to make sure that our policies are as easy to understand and as all encompassing as we can.
No matter how genuinely good value for money our policies are they can not stop your vehicle from being stolen and they certainly can not stop your vehicle from being involved in an accident.
Instead our policies are designed to protect you the only way insurance can, financially and we are here to support you every step of the way. Our policies do not have a 'market value' clause either for the amount that you are paid for your vehicle or with reference to the amount that your insurance company offer. We pay £250 towards your own motor insurance excess.
We cover the cost of all Factory fitted Options.
We can cover up to £1500 worth of dealer fitted options.
You have a 30 day cooling off period during which time if you cancel and proving you have not attempted to make a claim you are entitled to a full refund.
You can transfer the terms of your original cover, completely free of charge, to another eligible vehicle.
We do not charge extra for paying with a credit or debit card.
You can cancel at any time and receive a pro-rata refund less a nominal admin fee charged by the Underwriters.
We pay you any funds and not a nominated or pet dealership.
We pay up to £750 towards the cost of your own motor insurance companies excess.
Please note: The policy features listed above are slightly different for Motorbikes. We only contribute up to £250 towards your motor insurance excess and we don't cover any dealer fitted accessories. If you have any questions on the key policy features, please don't hesitate to contact a member of our award winning customer service team on either 0800 195 4926/0151 647 7556.
In fact the list goes on and on, however, we hope that you are starting to appreciate that real value for money vehicle replacement insurance does not mean a dilution in policy features support or backup.
To completely understand vehicle replacement it is far easier to take a look at a real life example. For illustration purposes lets say that you have just bought a demonstration Audi Q7. You have bought it within 90 days of it being registered and your local dealership where the first and only registered keeper.
The vehicle has lots of factory options as demonstrators often have and you negotiated a good deal and paid just £40,185 which is a massive £5815 less than a standard vehicle. Three years later your Audi is written off and your own insurance company offer you the ,market value which is estimated to be in the region of £21,000 based on average usage and average mileage.
Without any form of gap insurance and without using your savings the £21,000 is the only amount that you would have to be able to replace your Audi. To compound the issue to buy another Audi the same as yours was, the same factory fitted options, same mileage is now £48,000.
In this example vehicle replacement insurance would pay the difference between your vehicles valuation and the replacement cost of £48,000. This means that you now have the full replacement cost. From this you can clear any finance if needs be and the balance of the funds, the deposit you paid and the equity you generated is yours to do with as you see fit.
We know that if your local dealership has just quoted you for their level of gap insurance, looking at our prices can seem as though it is too good to be true and possibly something missing.
We completely understand, after all with a price difference up to 90% less than main dealerships and 50% less than some other online gap insurance providers, the question has to be asked, what is the difference?
There are differences, tangible real differences and they are absolutely nothing to do with policy features support or back up. Nothing to do with levels of customer service or claims handling. Instead, if you buy gap insurance directly from the organisation that you are buying your vehicle from, they are legally bound to charge you 20% IPT, as they have the ability to alter the total price of the vehicle. If you buy independently, you are charged the standard rate of IPT, this is traditionally lower than the rate of VAT.
Economies of scale still apply to the world of gap insurance and because of the volume of business we can provide we use our buying power to negotiate better supplier rates. lets put this into perspective if instead of buying juts one vehicle you where buying 100,000 you would naturally expect a much lower price per vehicle. You would still have the same vehicle just at a better price. This is exactly the same philosophy with gap insurance.
The third aspect is commission, not one member of the team are commission based, instead any bonuses paid are based on rates of customer service which we consider to be the only real barometer.
Can you buy vehicle replacement at a fraction of the cost of main dealerships and some other Internet providers. Yes, in fact the price you have paid bears no connection to the level of cover you have bought, instead it is merely a reflection of where you have purchased it from.
Your vehicle Replacement Claim limit is the maximum amount that you will ever be able to claim from your gap insurance policy. No matter how long it is for, how much you paid or in fact how much the replacement vehicle is.
As you can see the claim limit is therefore very important.
Which claim limit do you need and how do you pick the most appropriate level?
There is no exact science to picking a vehicle replacement claim limit however, we can and always advocate that you air on the side of caution.
No one can ever categorically state how much a vehicle will be worth at the end of a set period of time with a set mileage on it. After all there are simply too many factors to take into consideration. Public opinion, model upgrades, labour and taxation rates can all have an effect on the cost of your vehicle.
That said motor experts predict that the average vehicle with average usage can lose up to 50% within a three year period.
Lets play devils advocate and say that you vehicle did lose 50% and then lets look at worse case scenario and imagine that your vehicle was written off on the last day of your policy.
Your own motor insurance company will offer you the market value, your vehicle replacement policy is then designed to top this up not only to the invoice price you paid but instead to the replacement cost.
This means that your claim limit has to big enough to be able to perform.
For example you buy a vehicle for £15,000 and three years later your vehicle is written off.
To replace your vehicle now costs £16,385.
Your claim limit needs to be at least big enough to be able to cover 50% of your vehicles price and then allow for the inflationary increase.
So if the vehicle replacement claim limit you chose is so important why do we not recommend one?
The answer is simple became we do not want you to be over or under insured and the claim limit you need will vary from policy to policy and from year to year.
As always we understand that this may not be as simple and you may need assistance so why not click or call a a member of the team and explore your vehicle replacement options.
You can buy Vehicle Replacement up to 180 days after you have taken delivery of your vehicle. Vehicle Replacement Insurance is available from one to five years with claim limits of £5,000 to £50,000. If the vehicle you have bought is no longer available then settlement will be based on the superseding model.
Please remember that for us our sole priority will always your policy terms , conditions and what happens when you need to make a claim. We believe that gap insurance should be as easy to buy as it is to make a claim which we think is the only true real test of any policy.
No matter if the policy you are considering is perhaps not as all inclusive as your we still guarantee to beat it. No drama no fuss. That said we totally understand that price is an important factor for anyone.
We monitor the market to make sure that the price you are quoted is amongst the lowest if not the lowest in the UK, however, in the unlikely event that you do find a cheaper quotation we simply guarantee to beat it!
Your vehicle also has to be listed in Glass' guide and UK supplied, for a full listed of policy terms and conditions please see your full policy documents.
Making a vehicle replacement insurance claim is never nice. No matter how hard we try and we do, as something horrible will have happened.
Either your vehicle has been stolen or you have been involved in an accident which has meant that your vehicle has sustained enough damage for it to be uneconomically viable to be repaired. We understand this situation can and often is very stressful and in some cases upsetting.
We are here to support you each and every step of the way. Even though we cannot officially start any claim until your own insurance company have written to you to confirm that they are writing your vehicle off we would advocate that you contact us so that we can help.
Simple practical things that under normal circumstances you would do without thinking you may find under these circumstances slip your mind. From reminding you to take photocopies to requesting settlement letters where necessary.
From the moment that you have completed and returned your claims pack our claims team are ready to take over. Don't forget that we do not have any market value clause and instead providing that you have not accepted any settlement offer we agree to pay the difference between your own motor insurance companies settlement and the cost of a replacement vehicle.
Our claims team will take over the negotiation. They will talk directly with your own insurance company. This is not that we do not think that you are capable or that we do not think that you are able to do a good job, instead we simply do not want to put you in that position or burden you with the responsibility at such a time.
If you have taken you vehicle via a form of finance then your finance company will always be paid first, and the balance of funds sent to you.
What you chose to do with the funds is up to you. After all you may not want exactly the same vehicle again and we think that it is really important that after having to cope with the event of your vehicle being written off that you chose where, when and most importantly on what your money is spent.
From that moment we then guarantee to pay within 14 days.
Simple, stress free and above all else supportive vehicle replacement insurance just as it should be.
It is a fact that any insurance policy will have the famous 'small print'. The terms and conditions of a policy are what can make it quite different from another that may even bear the same basic description. There are a number of clauses that may reduce the settlement or liability of the Gap Insurer in the event of a claim.
A 'reduced liability' Clause means, as it suggests, that the Gap Insurers liability to you may be reduced for any reason. These can be found in VRI products in the market for a number of reasons.
For example you may have purchased the Gap Insurance a number of days after the vehicle purchase, some policies may reduce the cover for any deemed depreciation in that period. Some products may be less specific, and say they may reduce liability if you fail to get full settlement from your motor insurer for any reason.
The 'market value' clause is found in many products, and means that your Gap Insurance policy will pay from a specified value, usually the Glass' Guide Retail Value, at the time of total loss, and not specifically the motor insurers settlement.
This is an interesting one for us as two other leading brands we operate in Easy Gap and GapInsurance123 both have this clause in the policy terms. In practise the claims process we use, whereby our claims team negotiate directly with your motor insurer, has resulted in not one single occassion where any claim we process has resulted in a 'gap' between the motor insurers settlement and the Gap Insurance settlement.
However, we do understand that some consumers may be concerned that your motor insurer would not pay the Glass' Guide Retail Value for the replacement cost, so we have some good news when you buy a Shortfall.co.uk policy, as all our Gap Insurance products do not have a 'market value' clause.
This means that Shortfall VRI Gap Insurance will pay the difference between your Motor Insurers settlement and the cost of the equivalent vehicle that you purchased, as a replacement in the future.
The only thing we ask is that you do not accept any settlement from your insurer before making your Gap claim, and you will allow our claims team to negotiate with your insurers if necessary.
Shortfall.co.uk will pay from the amount that you own insurance company pays and the amount that you need to spend to buy another vehicle the same, age, mileage and conditions as yours was on the day that first drove it home from the dealership. If that model is no longer available then settlement is based on the superceding model.
Please also remember that you are always paid the funds and that we will never attempt to deliver a car or vehicle to you. After all souring vehicles is not our field of expertise, instead you decide where, when and on hat your money is spent.
With a genuine price promise, free transfer of policy terms and much more, why not compare our Vehicle Replacement Insurance and see just how much better off you will be with VRI Gap Insurance from Shortfall.co.uk?