What is Vehicle Replacement Plus GAP Insurance?
POLICY WORDINGPOLICY SUMMARY
A Vehicle Replacement Insurance policy will, in the event of a total loss (accident, theft fire or flood damage) pay the difference between the comprehensive insurer’s settlement and the cost of replacing your vehicle new for old (or with a vehicle of a similar age to the one originally bought, if it was not new at the time of purchase)* or the outstanding finance, whichever is higher at the time.
As well as depreciation, it could be that a vehicle matching the one you bought originally costs more – you might have had a discount which is no longer available or the manufacturer might have increased the cost following a change to the model.
With Vehicle Replacement GAP you are protecting against this possibility. Any settlement is paid directly to you, so if you have finance, this can be paid and anything remaining is yours to use as you wish. If you own the vehicle and have no finance, the full settlement is yours to use as you wish.