Frequently Asked Questions

My comprehensive motor insurance includes new for old cover, should I still buy RTI or VRI Gap rather than wait until after the first year?

A number of comprehensive motor insurance policies may offer “new for old” cover if you are the first and only registered keeper of your new car.

This means that if your car is written off or declared a total loss within 12 months then your motor insurer has the option to replace your car “like for like” i.e. provide a replacement car of identical make and model from the cheapest source.

If you are the first registered keeper, while the GAP insurance policy may overlap with new-for-old cover in the first year, it is still a valuable insurance for a number of reasons.

Firstly, you may prefer to have the choice of replacing your car with the latest model or perhaps even a completely different car. With “new for old” cover, your replacement car would be of an identical make and would need to match the original specification.

Another thing to consider is that after the first twelve months your car will no longer be eligible for Return to Invoice or Vehicle Replacement Gap leaving you unable to insure your cars depreciation from the purchase price over year two, three or four.

There are also some circumstances where your insurer may reduce your settlement to market value only and revert to standard comprehensive cover.

This could be for many reasons, for example the overall condition of the vehicle, exceeding the annual mileage allowance pro rata, if the exact model is no longer in production, if the vehicle has been stolen rather than being involved in an accident or if they are not able to source a replacement vehicle within a certain number of weeks after the incident.

When calculating our premiums for RTI and VRI, we do take into account that a number of our customers may have new for old cover in year one and reduce them accordingly.


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