Vehicle Replacement GAP Insurance

Vehicle Replacement

You bought a brand-new car for £30,000 and a couple of years down the road, it's unfortunately written off in an accident. Your standard insurance pays out the current market value of £22,000, but now, the cost to buy the same model new has gone up to £32,000.

Vehicle Replacement GAP insurance covers the gap between your insurance pay out and the cost of a brand-new replacement vehicle of the same make and model. So, in our scenario, this insurance would provide the extra £10,000 you need, bringing your total pay out to £32,000, allowing you to replace your car without financial issues.

This type of insurance is the most comprehensive, offering cover not just for depreciation but also for any increase in the cost of a new car. It ensures you can get a brand-new car equivalent to the one you lost, even if prices have risen since your original purchase.