Car Sales Training - An Overview of GAP and VRI

So what is GAP and how does it benefit our Customers?

GAP Insurance (GAP stands for Guaranteed Asset Protection) has been around for many years and in recent years has been developed in to two products

GAP Insurance covers the difference between a vehicle insurance write off amount, and the outstanding settlement on a finance agreement

For example: a Client has an oustanding finance settlement amount of £10,000 on the car

The car is written off and the insurance company write off amount is £7000

GAP Insurance will cover the shortfall of £3000 so the settlement amount may be paid off

The benefit to the Client is that he wouldn't have to continue paying for a vehicle he no longer has possession of

GAP has been developed in recent years to cover Clients who do not have a finance agreement on their vehicle

This is commonly known as VRI or VRP (Vehicle Replacement Insurance or Vehicle Replacemet Protection)

Again,this insurance protectd the Client in the event of an insurance write off on his vehicle

This cover will normally bridge the difference between the insurance write off amount and the original purchase price of the vehicle, enabling the Client to purchase a vehicle of similar value should the worst happen

Bear in mind that current statistics indicate that the risk of a vehicle being stolen or written off is now greater than ever before

Around 375,000 vehicles are stolen every year in the UK, the equivalent to 1 every 85 seconds!

Do be aware that not all GAP and VRI policies are the same, and some policies may have exclusions such as they may not cover Dealer fitted options or accessories - it is also VERY important that these products are offered in line with FSA regulations

The duration of GAP and VRI policies is normally three years, although other terms of cover are available

For details of companies who offer GAP and VRI products, or for further information on FSA contact us through our interactive website at www.carsalestraining.co.uk

About the author:
Stephen Turner has worked within the Motor Industry for over twenty years and is the founder of TOP Training Solutions, a specialist organisation which provides award winning performance improvement systems for the Motor Industry

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