anyone used 'ala.co.uk' for R.T.I. GAP Insurance?

[DJM]

As above really...
ala.co.uk. sound quite reasonable for RTI GAP insurance and the guy on the phone was very helpful today.
I was thinking of getting cover for 50% of my new vehicle value and cover for 3 years. My new car is on finance BTW.
I may go ahead with this unless I'm advised otherwise..
Any thoughts would be appreciated.
Cheers,
DJM

 

[GAPInsurance]

Assuming it's a brand new vehicle, you are the very first registered keeper, it's not the subject of a Contract Hire agreement (e.g. you're buying the vehicle) and subject to the breakdown of the finance agreement (how much deposit you've put down, the type and duration of the finance etc) it's almost certain that Replacement GAP Insurance would be a better policy than just Invoice GAP Insurance (RTI).

If the vehicle is brand new and you are the very first registered keeper, then it's also possible that your motor insurance will cover you for the first 12 months on a new-for-old basis. In most cases this negates the requirement for GAP Insurance in the first 12 months.

It is possible to purchase GAP Insurance but defer the start date until the day after the vehicle is 12 months old, which would therefore avoid you paying for GAP Insurance in the first year when the cover is there from your motor insurance already - assuming this affects you.

 

[DJM]

I have a hire purchase agreement where I have a balloon payment after 4 years...RTI is more expensive so therefore I assume its a better policy? I put down just over 15% deposit BTW...

 

[GAPInsurance]

I have a hire purchase agreement where I have a balloon payment after 4 years...RTI is more expensive so therefore I assume its a better policy? I put down just over 15% deposit BTW...

If you're getting RTI quotes more expensive than Replacement GAP Insurance (VRI) then I'd suggest something is either wrong, or they've got one hell of a promotion on Invoice GAP Insurance (RTI) at the moment.

With the limited data you've given so far I can say with reasonable confidence that Replacement GAP Insurance would be the better policy for you.

Consider that Invoice GAP Insurance will pay the difference between motor insurance payout and the original price paid for the vehicle first time around whereas Replacement GAP Insurance pays the difference between the motor insurance payout and the equivalent cost of replacing the vehicle new for old at the time of claim.

You'd have to check to be certain but I'm fairly sure that ALA pay out in either case by way of a cash-payout to the policyholder. This means that in the event of a claim, you're simply likely to get a higher payout from Replacement GAP Insurance than you would from Invoice GAP Insurance, which in turn would leave you with more cash to put towards the replacement vehicle.