Vehicle Replacement Insurance

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Thu 9 Feb 2006 18:52
Vehicle Replacement Insurance - revjem
My dealer would like to sell me 3 years' worth of Vehicle Replacement Insurance for a one-off payment of £199. (I'm buying a second-hand Alhambra for £13500) Any advice on this? Thanks, Jeremy
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Thu 9 Feb 2006 18:58
Vehicle Replacement Insurance - JH
Personally I'd put the £199 into the other pocket but then I don't like to insure anything I don't have to.
JH
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Fri 10 Feb 2006 07:40
Vehicle Replacement Insurance - marilyn
Hi took out one of these policies a few years ago and it was the best thing I could have done in the circumstances. Bought car from dealer for £7300 and had £5000 finance on it. Two years later the car was written off and the insurance company, after much haggling, came up with a valuation of £3000. I can't remember how much finance I still owed. The Total Loss Gap insurance made up the difference - apart from £200 and I can't remember why the discrepancy now. So for the cost of £199 I had an extra £4100 to put towards next car. It did take a while to sort out and their procedure regarding accident circumstances and valuation from the main insurer of the vehicle was quite intensive but all in all I would say I'm glad I did it.
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Fri 10 Feb 2006 10:27
Vehicle Replacement Insurance - Bill Payer
Like all these things, you're buying peace of mind. Hopefully the £199 would turn out to be a 'waste' of money becasue you'll never need to claim.
You have to consider - if the car was written off, could you afford to cover the difference yourself, or would you be happy to have a cheaper car? If not, then take the insurance.

I do wonder though, as marilyn alludes, who does the arguing over the cars valuation? You could presumeably end up stuck in the middle of two insurance companies. I'd want to know up front how this situation would be resolved.
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