Gap Insurance? - Definitely 'Yes', But RTI, RTV Or VRI?

As soon as a car is sold its value depreciates - every reason, therefore, to take out gap insurance. It's not easy to select from the different types that which is most appropriate for you. Understanding the different types will allow you to choose the gap insurance that will fit your needs in case your car is ever written off or stolen.

When a vehicle is written off, the insurer will offer you the value of the car at the time it was written off. This usually results in your getting a sum which is less than the value of the car. This difference is where gap insurance applies.

RTI- Return To Invoice

This type of gap insurance will provide you with the difference between the Invoice Price of the car and its value after car depreciation. This means if your car is a total loss from either being written off or if it is stolen, RTI insurance will allow you to collect the price you paid for the vehicle. This type of insurance is available to anyone whose car has been owned for less than three months. Whether you bought the car privately or from a dealer makes no difference.

RTV- Return to Value

The Return to Value or RTV gap insurance will pay you the difference of the value of your car when you buy the insurance policy and what the Motor Insurers deem is the depreciated value of the vehicle. You can take out RTV insurance within seven years of the car's purchase date and can cover any type of car. Any vehicle can be covered whether it has been bought with cash or by means of a loan.

VRI- Vehicle Replacement Insurance

Vehicle Replacement Insurance is gap insurance that allows you to replace your vehicle with a new one if your car is stolen or written off. This type of insurance pays the difference between what you get as a settlement from your Comprehensive Motor Insurance Policy and what it would cost to replace your vehicle.

It's important that your search for gap insurance is sufficiently thorough to ensure that you end up with the most appropriate cover. Some dealers will be casual in their use of the different sorts of gap insurance. An example of this would be where the dealer leads you to believe that you will get the cost of a new vehicle [VRI gap insurance] whereas the cover is only for the original invoice price [RTI gap insurance]. In this example the cover would not be enough to enable you to buy a new vehicle.

The pitfalls of not understanding the exact cover you are getting should be obvious. You can be sure that you will be getting what you are paying for if you fully understand what each of these types of gap insurance covers. Gap insurance is a very good investment and for a small premium you can replace your vehicle even if it is stolen or written off. It is a very small price to pay for your peace of mind.

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