What is VRI Gap Insurance and how can it work for you?

Vehicle Replacement Insurance or VRI Gap Insurance is possibly the most popular choice for Gap Insurance purchases from EasyGap.co.uk, for customers who have purchased new or nearly new vehicles.

As is explained at greater length throughout the EasyGap website, VRI Gap Insurance is designed to cover the difference between your vehicle's value when it is written off and the cost equivalent to return you to the equivalent specification vehicle, like for like, as at the time you bought the policy. If you purchased a brand new Volkswagen Passat, top of the range diesel automatic, then VRI would cover you to the cost of a brand new equivalent car today. Even if the price has gone up.

This new style of Gap Insurance is similar to 'new for old' home contents insurance that you will be familiar with.

Why has VRI become more popular than the more traditional versions of Gap Insurance, such as RTI?

The simple answer is that the price of new cars tend to increase over time. To demonstrate this let's look at the list price of a few of the more popular vehicles in the UK in 2007 and again in 2011.                                                                                 

Ford KA 1.3base level petrol    

  • List Price 2007 £7,995    
  • List Price 2011 £8,545                                       
  • Difference £560

Toyota Avensis 2.0 D Estate base   

  • List Price 2007 £16,350  
  • List Price 2011 £20,065      
  • Difference £3,715

VW Golf GTI 2.0 FSI 3dr Petrol     

  • List Price 2007 £20,607  
  • List Price 2011 £25,045
  • Difference £4,438

So, as you can see, the trend is for car prises to rise over time. Increases in VAT, manufacturing costs and even new model releases can see significant rises in supply prices.

In our examples above, a basic RTI Gap policy on your Golf GTI in 2007 could leave you nearly £4,500 short of the price of a new, replacement model in 2011.

The reasons for the popularity in VRI are therefore obvious. Also, the final consideration with VRI is in choosing your 'claim limit' wisely. As you are looking to cover a wider financial range than a RTI policy, it is an important point to make that you need to choose a large enough 'claim limit'.

If your 2007 Avensis is written off and valued at £9,000, a £10,000 claim limit RTI would be sufficient return you to your original £16,350 purchase price, but still £3,700 short of the cost of a new equivalent Avensis. To get the equivalent new car cost back, a £15,000 claim limit VRI would be needed.

Finally, with the VRI Gap Insurance policies supplied by EasyGap.co.uk, it is important to note that it is the cost of the same or equivalent model that you receive. Some VRI Gap Insurance policies actually cover only the original invoice price if the same vehicle is no longer available. We are pleased to say our insurers feel it is important you get full Vehicle Replacement Insurance.

If your vehicle has just been written off in an accident and exactly the same vehicle is no longer available then you will receive cover to the nearest equivalent model! 

Please remember that not all VRI Gap Insurance policies are the same and that with our policy if you have bought a pre-registered or demonstration model within 90 days of it being registered and your garage was the only first keeper, should you need to make a claim, settlement would be based on the cost of a brand new or superseding model.