May 16, 2018
Simple 1 guys, which is the 1 to go for?
Return to invoice or replacement vehicle?
Totally down to your personal circumstances and opinion here mate... would you like an identical car back? or the cash to use on anything you’d like?
When you put it like that, I suppose return to invoice would be best!
Replacement GAP is good if you suspect the price of your car will increase during the term, or if you got a high discount and think they won't be offered in the future.
Both are quite likely if a new model of the car is set to be released during the term of your GAP policy, since new models tend to increase in RRP, and discounts are less likely early in the cars life.
It's not usually about a physical replacement vehicle at the time of claim with Replacement GAP insurance, rather that the figures used to calculate the "gap" to be paid will be based on the what it *would* cost to buy the same vehicle again.
In short, you'd normally just receive a larger payout from a Replacement GAP insurance policy compared to that of an Invoice GAP insurance policy. You still be free (in most cases) to use that cash as you so wished... granted it's a little different in the case of a car with finance outstanding as the finance company will always get their bit first and you only get the surplus funds.
Note though that there are still some GAP insurance providers who limit their Replacement GAP insurance payouts if you're not going to use the paid out funds to purchase a vehicle... as an example... the DirectGAP.co.uk Replacement GAP insurance policy will only pay out on an Invoice GAP insurance basis if you're not using the paid out funds to buy a new car. By comparison the GAPinsurance.co.uk policy (and others online too) don't have any such restriction.
If you're interested at all we offer a product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP insurance we feel for some customers it can make a cost effective alternative.
Please feel free to take a look if you wish.
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