Vehicle Replacement Gap Insurance
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Vehicle Replacement Gap Insurance
Vehicle Replacement Gap Insurance, also called shortfall cover, is an insurance policy intended to cover the difference between insurance policy payout and the cost of a new car with the closest specification to the original vehicle.
If a motorist purchased a car for £18,000 and after 18 months it was written off, the insurance company may agree to pay £9,000, however the original vehicle is no longer being manufactured and the closest equivalent is an extra £3,000 that equates to £12,000 the motorist needs to find in order to purchase a new car with the closest specification to the original. If they owned Vehicle Replacement Insurance Cover this would cover these costs so the motorist doesn’t have too.
Additionally a Vehicle Replacement Gap Insurance policy can also be used to cover the costs to end a finance agreement and could also be put towards a deposit for a new vehicle.
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