Home » Vehicle Replacement Insurance
Vehicle Replacement Insurance
Vehicle Replacement Insurance is available for vehicles that are financed, on a personal loan, or owned outright. Vehicle Replacement Insurance is available to private individuals and companies. The cars can be up to 8 years old and cover is available for up to 4 years from the date that you took delivery of the vehicle.
In the event of an insurance write off, your motor insurance provider will only pay to you what they believe is the current market value for the vehicle – substantially less than you paid for it. Your insurer will pay a nominated dealer their settlement and your Vehicle Replacement Policy will pay to the dealer the difference in the value of replacing the car with a new car of the same or similar specification as the original car or of similar age if the car was not new when originally purchased.
Example:
| Original Cost of your car: | £20,000 |
|---|---|
| Deposit: | £2,000 |
| Amount of loan: | £18,000 | 18 months later the car is stolen or is in an accident and declared a total loss. |
| Amount still owing to your finance company: | £12,000 |
| The insurance company pays you only: | £9,000 |
So what will you have to do?
Simple! The Vehicle owner has to pay the GAP
Vehicle Replacement Insurance will pay to the nominated motor dealer the difference between the £9,000 insurance payout and the cost to buy a brand new car.
Protect your investment and avoid financial worry... Buy Vehicle Replacement Insurance online today
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Alexander Lauren Associates Ltd is
authorised and regulated by the Financial Services Authority. FSA Firm Reference No 310043
We are proud to be
Investors in People since 1999
If we are unable to settle your complaint with us, you may be able to refer your complaint to the Financial Ombudsman Service.
Further information is available at www.financial-ombudsman.org.uk