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Yet Another GAP Thread...


nordberg
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So I recently signed up to ALA - their Vehicle Replacement Insurance.

 

My thinking was that as I got a ridiculous discount on my new car, I could never be sure I'd manage the same discount going forward and I want the same spec replacement...yada yada yada...

 

I also had, in the back of my mind, the thought that should mine be declared a total loss, I would make the claim with ALA, get the full replacement value cheque, and buy something else as I was, wrongly, under the impression that I would simply be given a shortfall cheque and it would be left to my own discretion what I actually choose as my replacement. They will give me a cheque, but only to the value of the original invoice - which is crap.

 

So, my question is - what have others done? I've been looking at Car2Cover who seem to offer what I'm after. I'm within my 30 day cancellation period with ALA, but I want to be sure I choose the correct policy the second time of asking.....

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Most motor policies are new vehicle replacement up to 12 months.

Then your GAP kicks in with return to invoice being the best option.

If you have negotiated a one off never to be repeated discount, then it is unlikely you will get the same again by it's very nature.

 

Not quite... The whole point of VRI is to get you back into an identically specified model (or equivalent).

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That's not how I read it. As it does not cover price increases and spec changes.

 

 

I am talking about RTI GAP. I wasn't aware of a vehicle replacement insurance that can do this for a 3 or 4 year term.

 

Yes - but I've taken VRI as I need to factor in the fact that my discount may not be available in 18 months time etc etc.....

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RTI Gap for me - finance or not, its a no brainer.

 

I get the difference between this and VRI - but in 4 years time, will your model still be available or will their have been a facelift version? Thus making the insurance a bit of a waste?

 

I am happy that I could get the same car and discount again.

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I get the difference between this and VRI - but in 4 years time, will your model still be available or will their have been a facelift version? Thus making the insurance a bit of a waste?

 

 

 

That's my point.... VRI should give you the option to replace with an identically specified car or its equivalent.... RTI will potentially leave you with a shortfall - car prices rarely go down......

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I have just checked on ALAs site. VRI is slightly cheaper than RTI. This suggests to me that in the event of a total loss, ALA would use their trade buying power to get a replacement vehicle at a cost to them texted than most private buyers could achieve.

For me RTI is the better product as it gives the flexibility to choose what ever vehicle you like in the future. Also you are not at the mercy of the insurance company in deciding what an appropriate replacement vehicle actually entails.

Edited by jimdiesel
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I've used Ala to get me back to the invoice price I paid for the car, can't expect anything else really and it seemed excellent value compared to BMWs offering. 

 

Good to hear they do what they say on the tin so to speak....

 

My original question seems to have got lost in the thread though....

 

Based on what replies we've had so far, no one has chosen Vehicle Replacement Insurance? I'm amazed by this....

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I have just checked on ALAs site. VRI is slightly cheaper than RTI. This suggests to me that in the event of a total loss, ALA would use there trade buying power to get a replacement vehicle at a cost to them texted than most private buyers could achieve.

For me RTI is the better product as it gives the flexibility to choose what ever vehicle you like in the future. Also you are not at the mercy of the insurance company in deciding what an appropriate replacement vehicle actually entails.

 

No, VRI is more expensive.....

 

VRI is the better product as you will get a like for like replacement regardless... With RTI, you will get the value of your invoice which in 30 months time will undoubtedly be subject to inflation and various other factors....

 

My original point - which has long since fallen by the wayside - was that with ALA's VRI, they basically order the replacement car for you, thereby forgoing on any opportunity to choose a different make/model to the same value. Other providers, Car2Cover for example, allow you to choose any car you want - to the same value of your replacement - with their VRI cover.....

 

Of course, as everyone has pointed out, RTI allows you to get whatever you want. The big problem with RTI is that it's just that - Return To Invoice. My invoice is £9k less than the list price of the vehicle. Will I get that discount in xx month's time? Perhaps not, in which case I will be the proud owner of a 320 Efficient Dynamics rather than 330D M Sport......

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But the point is, it's not you getting the discount. You would not be buying the car. The insurance company will.

Try this scenario. In 3 years time the 6cyl 330d has been replaced by a 1.8 4cyl hybrid. You will have no choice but to take the perceived direct replacement.

On ALAs site, 4 year RTI is £250. Identical VRI is £244. Both for £35000 with a limit of £25000

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On the quote that I got VRI is £50 more expensive than RTI. As I've got used it would be a very very subjective argument as to the car they got me back into and what the value was today used etc. 

 

As it stands if the car goes I get X payment from my insurance for the loss, Y payout to add additional money back to the exact figure I paid in the first place, no debate no discussion just cash to get me back to where I was before for me to chose what I want from whom I want and to negotiate what deal I feel best for me. 

 

I can see why VRI might be better but not when its for me 30% more expensive. +++

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Nordberg,

 

If you are leasing or doing Contract Hire you need to be very careful here.

 

If you are financing it on a PCP or HP with a balloon you are fine with either VRI or RTI.

 

Yes, I understand that... I'm on PCP and VRI...

 

But the point is, it's not you getting the discount. You would not be buying the car. The insurance company will.

Try this scenario. In 3 years time the 6cyl 330d has been replaced by a 1.8 4cyl hybrid. You will have no choice but to take the perceived direct replacement.

On ALAs site, 4 year RTI is £250. Identical VRI is £244. Both for £35000 with a limit of £25000

 

That's my point!! With VRI from ALA, they will be buying the car - leaving me with no choice. With VRI from another (Car2Cover), they give you a cheque to the value of your VRI and you can buy whatever you want....

 

WRT the ALA pricing, seems to be a funny with their calculator. Knock the value up to £36k and the VRI is £25 more expensive... VRI is the more expensive package...

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