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Vehicle Replacement GAP Insurance


What is Vehicle Replacement Plus GAP Insurance?

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

With Vehicle Replacement Plus, you will receive an additional settlement to cover the financial shortfall between your insurer’s settlement and the replacement cost of your vehicle. If you have a finance agreement, we will pay up to the outstanding balance on the finance agreement if this is the higher amount at the time of the claim.

This policy is suitable if you’re concerned about potential price increases where the cost of buying the same car again could be higher than the amount you originally paid; however, the replacement cost could also be the same or lower.


What do we mean by “replacement cost”?

This the cost of buying a vehicle of the same age, mileage, make, model and specification as the one originally purchased.

This means that, if you buy a brand-new car which is subsequently written off, Vehicle Replacement Plus will top up your insurer’s settlement to the cost of an equivalent brand new car.

POLICY WORDING IPID QUOTE ME


How does this policy compare to Back to Invoice Plus?


Vehicle Replacement
Pays up to replacement cost of a vehicle 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 you in the event of a claim.
For vehicles bought outright or on finance.
Available for vehicles with a purchase price of up to £150,000.
Available for vehicles less than 7 years old, with fewer than 80,000 miles, purchased within the last 90 days.
No ongoing mileage limit.
Back To Invoice
Pays you back to the price you paid for the vehicle or your finance settlement figure if that is higher.
You get back the money you paid for your vehicle to use as you wish.
Settlement paid to you in the event of a claim.
For vehicles bought outright or on finance.
For vehicles 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 £150,000


Do I need Vehicle Replacement Plus?

The answer to this is yes if:

  • You have a finance agreement, have enough money to clear any outstanding finance AND be left with the remaining money towards a replacement car
  • You do not have any finance, the settlement amount can be used however you wish

Can I buy Vehicle Replacement Plus?

The answer to this is yes if:

  • You have bought a vehicle worth less than £150,000
  • Your vehicle is less than 7 years old, with less than 80,000 miles
  • Your vehicle was collected from a VAT registered dealer within the last 90 days
  • Your vehicle is owned outright OR you have a Hire Purchase or Personal Contract Purchase finance agreement
  • Your vehicle is not excluded as one of the following: Any taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle or any rally, competition or off-road vehicle of any type. Please see our exclusion list to check your vehicle isn't on the list.

    Any Commercial Vehicle over 3500kg, Motorcycle, Motor Scooter or Moped. Any left hand drive vehicle and a vehicle which does not meet UK or EC approval or is not commercially available in the UK direct from a manufacturer or its authorised importer or dealer. Any taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle or any rally, competition or off-road vehicle of any type.



Vehicle Replacement Plus GAP Insurance Features:

  • The Vehicle Replacement Plus can be purchased for vehicles owned outright or on finance
  • The policy can be bought for up to 4 years
  • Pays up to £250 or £500 of your Comprehensive Insurance excess (dependent upon underwriter and confirmed at time of purchase)
  • FREE of charge amendments to policy details
  • We guarantee to match any comparable online GAP quote
  • Policy transfer – pro rata transfer of unused premium if you change your vehicle, with no admin fees
  • All settlements are paid to you
  • We are fully authorised and regulated by the Financial Conduct Authority (FCA) and your policy has cover under the Financial Services Compensation Scheme


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...