Vehicle Replacement GAP Insurance


What is Vehicle Replacement Plus GAP Insurance?

POLICY WORDING POLICY SUMMARY

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.


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 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 Cover 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 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 a supplying dealer in the event of a claim.
For vehicles 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
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 £100,000

Vehicle Replacement Insurance FAQ

Our Vehicle Replacement Plus policy is an optional add-on to our Back to Invoice Plus policy.

For this reason you would still use the invoice price of your car itself including manufacturer fitted extras and dealer fitted extras (as long as these are on the manufacturer price list and appear on the vehicle purchase invoice).

Include within this any deposit or trade in you have made against the purchase but use the price of the vehicle after deducting any dealer of manufacturer discount.

You don't need to include any interest or charges relating to your finance agreement, if you have one.

Do include: Factory extras, dealer fitted extras which are on the same invoice as the car and on the manufacturer’s price list.

Don’t include: Interest charges, manufacturer delivery charges, paint protection, fuel, road fund licence, extended warranty, insurance and service plan costs.

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 would 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 new or up to 10 years old and it was purchased within the last 365 days, we are able to offer you Vehicle Replacement Insurance or Return to Invoice.

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.

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