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Vehicle Replacement GAP Insurance


What does this policy cover?

A Vehicle Replacement Insurance policy will, in the event of a total loss, pay the difference between the comprehensive insurer’s settlement and the cost of replacing your vehicle new for old (or with a vehicle of a similar age to the one originally bought, if it was not new at the time of purchase)* or the outstanding finance, whichever is higher at the time.

It is suitable for new or used vehicles up to 10 years of age, owned outright or on finance, bought from a dealer or a private seller, delivered within the last 365 days, is less than 10 years old, has done less than 80,000 miles and is not an excluded vehicle.

Vehicles used in any sort of competitions or rallies. Vehicles used for racing, pace making, speed testing or in reliability trials; Vehicles not listed in Glass's Guide; kit cars; invalid carriages; commercial Vehicles of more than 3500kg gross weight. Any, taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle.


*If the car is bought privately and no VAT invoice is present, we will pay back to the Glass Guide value of the vehicle at the time of purchase. In this instance, we would suggest the Back to Invoice Plus policy as it provides the same cover but at a reduced price.

POLICY WORDING POLICY SUMMARY QUOTE ME


How does this policy compare to Back to Invoice Plus?


Back To Invoice
Pays you back to the price you paid for the car or your finance settlement figure if that is higher.
You get back the money you paid for your car to use as you wish.
Settlement paid to you in the event of a claim.
For cars bought outright or on finance.
For cars up to 10 years old, no upper mileage limit.
No ongoing age or mileage limit.
Available for vehicles up to £250000.
Vehicle Replacement
Pays up to replacement cost of a car matching the original or your finance settlement figure if that is higher.
Protects from manufacturer price increases or discounts that are no longer available.
Settlement paid to you in the event of a claim.
For cars bought outright or on finance.
For cars up to 10 years old with less than 80,000 miles.
No ongoing age or mileage limit.
Available for cars up to £125000.


Is Vehicle Replacement Insurance suitable for me?

You can purchase a Vehicle Replacement Insurance policy if:

  • You have purchased your car outright.
  • You have purchased your car using a personal loan.
  • You have purchased your car using finance secured against it using a PCP (Personal Contract Purchase) or HP (Hire Purchase) agreement.

You may choose to take a Vehicle Replacement Insurance policy for up to 5 years, as long as your car has been purchased within the last 365 days from a dealer or finance provider, is less than 10 years old, has done less than 80,000 miles and is not an excluded vehicle.

Vehicles used in any sort of competitions or rallies. Vehicles used for racing, pace making, speed testing or in reliability trials; Vehicles not listed in Glass's Guide; kit cars; invalid carriages; commercial Vehicles of more than 3500kg gross weight. Any, taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle.



Vehicle Replacement Insurance Cover features:

  • Vehicle Replacement cover can be purchased for cars owned outright or on finance
  • The policy can be bought for up to 5 years
  • Your policy will be underwritten by UK General Insurance Limited on behalf of Great Lakes Insurance SE, an A rated underwriter, so it is protected under the Financial Services Compensation Scheme
  • We pay up to £250 of your motor insurance excess
  • All settlements are paid to the customer not the dealer!
  • We do not include "Market Value" and "Glass's Guide" claim reduction clauses
  • Vehicle Replacement Insurance is available for cars up to 10 years of age with less than 80,000 miles on the clock and delivered within the last 365 days
  • Policy transfer – pro rata transfer of unused premium if you change your car, with no admin fees
  • FREE of charge amendments to policy details
  • We guarantee to beat any comparable online GAP quote


What would Vehicle Replacement Insurance do for me?

Select the option below that resembles the method you used to purchase you vehicle:

1. I own my vehicle outright (payment with cash or using personal loan)

Vehicle Replacement Insurance will pay the difference between your comprehensive insurer's settlement and the replacement cost of a vehicle of the same make, model, specification and age as the one you originally purchased. This is new-for-old replacement if the car you purchased originally was brand new or one of the equivalent age as that you originally purchased if it was a used car.

Our claims administrators would pay you the settlement directly unless you request them to source the vehicle on your behalf.

2. I have a finance agreement - either on HP or PCP.

We will pay the difference between your motor insurer's settlement up to the higher amount at the time of any write off:

  • Clearing the outstanding finance to leave you free of your obligations under that agreement. This may apply during the early stages of your finance arrangement where the addition of interest combined with a small deposit means that the finance is greater than the amount required to replace the vehicle.
  • Up to the replacement cost of the vehicle. Any outstanding finance is cleared as part of the policy, with that remaining amount amount then needing to be re-financed on the new vehicle. This will be the case where you have paid a substantial deposit or you have made enough payments to make the remaining amount of finance lower than the invoice price.

Please see below an example with and without finance:



Vehicle Replacement Insurance Example:

Our Vehicle Replacement Plus GAP Insurance will pay either the amount outstanding to your finance company or replace your vehicle like for like new for old depending which figure is higher at the point of a claim.
Your purchase price: £20,000
Replacement cost at time of claim: £21,500
The amount owed to the finance company at the point of claim: £23,000
Your comprehensive market value insurance payout: £15,000
Our Vehicle Replacement Plus payout: £8,000
Comprehensive insurance payout + ALA GAP Insurance payout = £23,000
(Leaving you clear of any owed finance on your vehicle)