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Vehicle Replacement GAP Insurance


What is Vehicle Replacement Plus GAP Insurance?

ALA Vehicle Replacement Insurance is an optional add-on to our standard Back to Invoice Plus GAP Insurance.

In the event of a total loss (accident, theft fire or flood damage) your motor insurer will pay you what the car is worth at the time of the claim.

With Vehicle Replacement Cover, we will pay the difference between your motor insurer’s settlement and either:

1. The replacement cost of your vehicle with one of the same age, make, model and specification as the one originally purchased

  • This option is useful if you’re concerned about potential price increases; the cost of buying the same car again could be higher than the amount you originally paid, however it could also be the same or lower
  • The GAP settlement is credited directly to a dealership
  • You can choose to upgrade to a more expensive model and/or higher spec from the same dealer, and pay the difference
  • The maximum amount payable under the policy is detailed in your policy schedule. The Vehicle Replacement Cover option provides up to an additional £10,000 and is selected at the time of purchase

OR:

2. The original invoice price of your car

  • This allows you to opt for a payment up to the original invoice price – you may not want the same car again following the write off, or the replacement car might cost less than you originally paid

If you owe more on finance at the time of the claim, the GAP policy will pay the difference up to the outstanding finance balance.

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 potential manufacturer price increases or discounts that are no longer available.
Settlement paid to a supplying dealer in the event of a claim.
For cars bought outright or on finance.
For vehicles up to 10 years old.
No ongoing age or mileage limit.
Available for vehicles with an invoice price of up to £50,000
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 potential rising vehicle costs
  • Have enough money to clear any outstanding finance AND be left with a dealer credit towards the replacement car. If you do not have any finance, this amount can be used in full towards a replacement car

Can I buy Vehicle Replacement Plus?

You can purchase the Vehicle Replacement Cover if:

  • You have bought a vehicle worth less than £50,000
  • Your vehicle is under 10 years of age
  • Your vehicle was collected within the last 365 days
  • Your vehicle is owned outright OR you have a Hire Purchase or Personal Contract Purchase finance agreement
  • Your vehicle was bought from a VAT registered dealer
  • Your 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:

  • The Vehicle Replacement Cover can be purchased for vehicles owned outright or on finance
  • The policy can be bought for up to 3 years
  • Your policy will be underwritten by Lloyd's Syndicate 4444 which is managed by Canopius Managing Agents Limited, 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
  • Vehicle Replacement Insurance is available for vehicles up to 10 years of age delivered within the last 365 days
  • Policy transfer – pro rata transfer of unused premium if you change your vehicle, with no admin fees
  • All settlements are paid to 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)


Read more on why ALA GAP Insurance policies are better than the rest or click the green button to get a quote...