Vehicle Replacement GAP Insurance


What is Vehicle Replacement Plus GAP Insurance?

POLICY WORDING IPID

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, 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.


Mind the GAP! Avoid a potential shortfall...

On the road price: £
Anticipated length of ownership (years):

ALA GAP Insurance is recommended and awarded by

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 Cover 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

Vehicle Replacement Plus Example

Vehicle Replacement Plus Example (With Finance)

*Example shows the amount covered by your Comprehensive Vehicle Insurance (based on average depreciation rates and current market value) and the potential shortfall if your vehicle is written off.

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)
QUOTE ME

How does this policy compare to Return 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.
RETURN 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

Vehicle Replacement Insurance FAQ

For the purposes of a quote please use the invoice price of the car including manufacturer fitted extras. Please also include dealer fitted extras, as these are covered up to a maximum of £1,500 including VAT.

Deduct any dealer or manufacturer discount (including deposit allowances, concessions, cashback, incentives or contributions).

Other things we don’t include: Interest charges, manufacturer delivery charges, paint/upholstery protection, fuel, road fund licence, warranty costs, administration fees, insurance, service plan costs, arrears and negative equity.

If you would like any assistance with a quote, please contact our team on 01653 916304

Return to Invoice Plus will cover the difference between your motor insurer's settlement and either your invoice price or outstanding finance - whichever is greater at the time of a write off.

The Vehicle Replacement Plus policy will pay the difference between your motor insurer's settlement and either the replacement cost of a vehicle of the same make, model, age and specification as the original vehicle or the outstanding finance, again whichever is greater at the time of a write off.

If your vehicle is less than 7 years old, has covered fewer than 80,000 miles and has been purchased in the last 90 days, we are able to offer you Vehicle Replacement Plus GAP Insurance.

The Vehicle Replacement Plus policy covers the difference between your motor insurer's settlement and the replacement cost of a brand new vehicle, if your vehicle was new at the time of purchase. Alternatively, if your vehicle was not brand new, it covers the difference up to the cost of a vehicle which matches the age of the vehicle that you originally insured.

If you’ve had the car for more than 90 days, or it exceeds the above age limits, we can instead offer you a Return to Invoice Plus policy.

The Return to Invoice Plus policy pays the difference between your motor insurer's market value settlement and your original invoice price.