Vehicle Replacement Gap Insurance sales on the increase, say GapInsurance123, as consumers seek to protect the value of discounted new vehicles in the UK

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Leading Gap Insurance provider reveals Vehicle Replacement Insurance products are now the most popular form of asset protection for new car purchasers. However GapInsurance123 warn UK consumers that not all VRI policies may not be what they may seem.

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Vehicle Replacement Gap now most popular for new vehicle purchases say GapInsurance123

One of the leading motor Gap Insurance brands in the UK, GapInsurance123, has revealed that Vehicle Replacement Insurance may now be the most popular form of asset protection chosen by new vehicle buyers in the UK. The independent brand says that sales figures now show VRI Gap Insurance as a more popular choice than the return to invoice style often provided at motor dealers.

Company director Mark Griffiths, explained the findings, as well as providing an insight into why consumers opt for Vehicle Replacement cover on a new vehicle purchase. This form of insurance can provide financial protection, should a vehicle be lost due to theft, fire or accident.

"The traditional motor dealer Gap Insurance product is the simple Return to Invoice product, which in the event of a vehicle being deemed a total loss, will protect the consumer to the original purchase price of the vehicle."

"The issue with this type of cover is simply that to replace the vehicle with the same standard of vehicle in the future may well be significantly more than the original price paid. This is an issue that Vehicle Replacement Insurance can address also. Therefore it is clear that, in many cases, VRI Gap is more comprehensive in nature when compared to RTI Gap Insurance."

"The issue in the past has been that even though VRI may be more suitable for new car buyers, motor dealers have not traditionally offered it to customers."

"Over the last few years we have seen much higher numbers of consumers turn to independent providers for Gap Insurance, giving a clear choice and comparison between RTI and VRI."

"At GapInsurance123 we offer both types of cover, and we have seen that given a straight choice that consumers now see Vehicle Replacement Insurance as the better option for their financial protection."

GapInsurance123 have issued a word of warning to those considering Vehicle Replacement Insurance, to check the terms of the policy they are considering before they purchase. Mark Griffiths explained why not all products bearing the title 'Vehicle replacement Insurance' may provide the same type of financial protection.

"When GapInsurance123 talk about Vehicle Replacement Insurance products, we are clear that VRI will cover to the replacement cost of the equivalent vehicle to the one first purchased, at the time of purchase. It the vehicle was new when first bought, and the equivalent new vehicle is £5,000 more to buy in the future, then VRI should, in our eyes, bridge this inflationary increase."

"What is clear in our study of the market is that some products that are named 'Vehicle Replacement' may not perform in the same way as we described."

"There are products that will only protect back to the original purchase price only, even if this is not enough to replace the vehicle. There are also products that will pay to the lesser amount of either the original purchase price or the future replacement cost. As the cost is likely to increase then these products also would only pay to the original invoice price."

"If consumers wish to protect themselves fully for the future replacement costs, they should check the policy terms thoroughly."

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Tom Luetchford
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