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PistonHeads is working as a GAP Insurance introducer for ALA IB Limited trading as ALA Insurance Brokers, who is Authorised and Regulated by The Financial Conduct Authority. FCA Firm Reference No 571109. Registered in England, number 06833207. Registered office: ALA IB Limited, Unit 3, Park Farm Courtyard, Easthorpe, Malton, YO17 6QX

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Vehicle Replacement GAP Insurance


What is Vehicle Replacement Plus GAP Insurance?

A Vehicle Replacement Insurance policy will, in the event of a total loss (accident, theft fire or flood damage) 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.

As well as depreciation, it could be that a vehicle matching the one you bought originally costs more – you might have had a discount which is no longer available or the manufacturer might have increased the cost following a change to the model.

With Vehicle Replacement GAP Insurance you are protecting against this possibility. Any settlement is paid directly to you, so if you have finance, this can be paid and anything remaining is yours to use as you wish. If you own the vehicle and have no finance, the full settlement is yours to use as you wish.

*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?


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 vehicles with an invoice price of up to £125,000
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 with an invoice price of up to £100,000


Do I need Vehicle Replacement Plus?

The answer to this is yes, if you want to:

  • Protect against the depreciating value of your vehicle
  • Protect the value of your vehicle, not just what you paid for it
  • Protect against rising costs of new vehicles and/or any discount you received at the time of purchase
  • Have enough money to clear any outstanding finance AND be left with any money remaining once this has been paid
  • Between the motor insurer and GAP cover, receive the replacement cost of your vehicle – if you do not have any finance, this amount is yours to use as you wish

Can I buy Vehicle Replacement Plus?

  • I have bought a new vehicle, or a used vehicle under 10 years of age with less than 80,000 miles
  • My vehicle was collected within the last 365 days
  • My vehicle is owned outright OR I have a Hire Purchase or Personal Contract Purchase finance agreement
  • My vehicle was bought from a VAT registered dealer
  • My vehicle is not excluded

    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 Plus GAP Insurance Features:

  • Vehicle Replacement cover can be purchased for vehicles 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
  • FREE of charge amendments to policy details
  • We guarantee to match any comparable online GAP quote
  • We do not include "Market Value" and "Glass's Guide" claim reduction clauses
  • Vehicle Replacement Insurance is available for vehicles up to 10 years of age with less than 80,000 miles on the clock, delivered within the last 180 days, or 365 days (if insured under a comprehensive Motor Insurance Policy which includes ‘New for Old’ cover for the first 12 months)
  • Policy transfer – pro rata transfer of unused premium if you change your vehicle, with no admin fees
  • All settlements are paid to the customer not the dealer!


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)