How Return to Invoice Gap Insurance Rules the Road

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Return to Invoice Gap Insurance is said to be the most popular and widely available form of Gap Insurance in the UK. This form of Gap Insurance also tends to be the level of cover that suits a considerable amount of cases. However, this post has been designed with you in mind as it will inform you the reader of the other types of Gap Insurance.

As explained in previous posts, Gap protection will protect you from the financial effects caused by depreciation. The financial difference is also down to the fact that your motor insurer will only ever cover the market value of your vehicle on the day it was written off or stolen.

The majority of people will be introduced to Return to Invoice Gap Insurance and think it is a great idea and perfect for them, however, this may not be the case and another level of cover may be even more ideal for yourself.

For Example, as mentioned in yesterdays post, if you have purchased your vehicle through the form of a financial agreement and have no option to own the vehicle at the end of the agreement, a Finance Gap policy would be your only option.

Finance & Contract Hire Gap will cover the difference between the market value of your vehicle on the day it was written off or stolen and the amount of finance you have outstanding on the vehicle.

If you have also purchased a vehicle at a discounted price, then in order to protect the discount you have, a Vehicle Replacement Insurance policy would be more than essential.

Vehicle Replacement Insurance will cover the difference between the market value of your vehicle on the day it was written off or stolen and the average cost to replace the vehicle with the same age, mileage and specification etc as yours was on the day of purchase. This will result in your deposit being protected and if the model has increased in price without you having any level of discount. It is highly likely anyway that a vehicles price will increase year on year due to general inflation.

Return to Invoice Gap is more than likely to have been the first explanation of Gap Insurance and is likely to seem a really good idea and then be purchased. However, please be sure to check online and read about the three different levels of cover and find out which level of cover is best for you.

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