Promoted: Free 30-day GAP policy for PHers with ALA
Discussion
That doesn't sound great to me. I don't see what the benefit is of vehicle replacement plus over back to invoice plus in this case. You are saying that the vehicle replacement bit wont apply.
This is an issue which is going to face most buyers over the next 5-10 years as we move to electric vehicles.
Are you saying that if someone goes for a 5 year policy then over the course of the policy their options will gradually reduce as more vehicles become electric?
Is this really how it works, rather than just being a financial product?
What do you currently do when models change?
This is an issue which is going to face most buyers over the next 5-10 years as we move to electric vehicles.
Are you saying that if someone goes for a 5 year policy then over the course of the policy their options will gradually reduce as more vehicles become electric?
Is this really how it works, rather than just being a financial product?
What do you currently do when models change?
Hi TooLateForAName
Sorry for any confusion, hopefully I can clarify these details for you.
The Back to Invoice + policy will pay the difference up to the fixed original price you paid for the car, whereas the Vehicle Replacement + policy will pay up to the replacement cost - the benefit with Vehicle Replacement over Back to Invoice is that the replacement cost could be higher than the original invoice price.
We do understand that manufacturers are moving towards hybrid and electric vehicles in the coming years, and as you say the issue we're discussing here is likely to arise in 5-10 years' time when manufacturers are aiming to solely produce electric cars. For this reason, although the electric version of the Citigo is due to be released soon, the petrol/diesel version (or a similar equivalent petrol or diesel version from an alternative manufacturer) will still be available for some time yet. It is also worth bearing in mind that our maximum policy term is 3 years, and it would be unlikely for there to be no petrol or diesel replacement car available within that time.
Also, GAP insurance is designed to put you back in the position you were in when you first bought the policy and so in your case you have bought a petrol/diesel engine car and to provide you with a replacement electric car would bring in issues of betterment.
In relation to model changes, when this happens they are usually either face lifted or replaced with a newer version of the same model and this would be accounted for by the GAP policy. There may also be a complete change to a model and a recent example from Skoda is the end of production of the Yeti, and the replacement of it with the new Karoq. This would also be allowed for within the policy, so a customer who purchased a brand new Yeti which is subsequently written off, we would then look at the cost of the new Karoq as the replacement model, with a price increase for the new model being less than £2,000.
I hope this information helps with your decision. I think this probably is the limit of information that we can go through on here but if you do need anything else please feel free to get in touch with me by email katie@ala.co.uk or calling 01653 916301.
Thanks,
Katie
Sorry for any confusion, hopefully I can clarify these details for you.
The Back to Invoice + policy will pay the difference up to the fixed original price you paid for the car, whereas the Vehicle Replacement + policy will pay up to the replacement cost - the benefit with Vehicle Replacement over Back to Invoice is that the replacement cost could be higher than the original invoice price.
We do understand that manufacturers are moving towards hybrid and electric vehicles in the coming years, and as you say the issue we're discussing here is likely to arise in 5-10 years' time when manufacturers are aiming to solely produce electric cars. For this reason, although the electric version of the Citigo is due to be released soon, the petrol/diesel version (or a similar equivalent petrol or diesel version from an alternative manufacturer) will still be available for some time yet. It is also worth bearing in mind that our maximum policy term is 3 years, and it would be unlikely for there to be no petrol or diesel replacement car available within that time.
Also, GAP insurance is designed to put you back in the position you were in when you first bought the policy and so in your case you have bought a petrol/diesel engine car and to provide you with a replacement electric car would bring in issues of betterment.
In relation to model changes, when this happens they are usually either face lifted or replaced with a newer version of the same model and this would be accounted for by the GAP policy. There may also be a complete change to a model and a recent example from Skoda is the end of production of the Yeti, and the replacement of it with the new Karoq. This would also be allowed for within the policy, so a customer who purchased a brand new Yeti which is subsequently written off, we would then look at the cost of the new Karoq as the replacement model, with a price increase for the new model being less than £2,000.
I hope this information helps with your decision. I think this probably is the limit of information that we can go through on here but if you do need anything else please feel free to get in touch with me by email katie@ala.co.uk or calling 01653 916301.
Thanks,
Katie
Hi PenelopaPitstop
Thanks for getting in touch.
As long as you're covered to drive in those countries by your comprehensive motor insurer, you would also be covered by our GAP insurance policy in the same way. Although they are not technically in the EU they would be seen in the same way as EU countries for insurance purposes.
I hope this helps and if you have any other questions please let me know.
Thanks,
Katie
Thanks for getting in touch.
As long as you're covered to drive in those countries by your comprehensive motor insurer, you would also be covered by our GAP insurance policy in the same way. Although they are not technically in the EU they would be seen in the same way as EU countries for insurance purposes.
I hope this helps and if you have any other questions please let me know.
Thanks,
Katie
ALA get a 
from me. Once again swapped cars mid policy, and with a call they've set up a new policy, transferred the value remaining from the original policy across to the new one. When I first did this I emailed to cancel the original policy and was told of this added benefit, and a portion of the original payment refunded without my asking.
from me. Once again swapped cars mid policy, and with a call they've set up a new policy, transferred the value remaining from the original policy across to the new one. When I first did this I emailed to cancel the original policy and was told of this added benefit, and a portion of the original payment refunded without my asking. 
Excellent customer service comes as standard!
with any queries or questions.Hi there
Ive just purchased the replacement vehicle + RTI cover
I had a query about the exclusions RE competition, rally etc.
If you use your car for a track day, as in, just you on your own, not in a professional capacity or anything like that - would the cover then no longer be in place at ALL? I assumed it meant, you wouldn't cover anything that happened on a track day, but i just want to clarify if taking GAP insurance with you will then mean you effectively 'cant' have a track day at all?
Thanks
K
Ive just purchased the replacement vehicle + RTI cover
I had a query about the exclusions RE competition, rally etc.
If you use your car for a track day, as in, just you on your own, not in a professional capacity or anything like that - would the cover then no longer be in place at ALL? I assumed it meant, you wouldn't cover anything that happened on a track day, but i just want to clarify if taking GAP insurance with you will then mean you effectively 'cant' have a track day at all?
Thanks
K
Hi kelevraz
Thanks for getting in touch and I'm sorry for the delay in getting back to you.
If you take your car on a track day, it wouldn't invalidate the whole policy but would just mean that the GAP cover won't apply during the track day.
I hope this helps but if you would like me to answer any further questions at all please let me know
Thanks,
Katie
Thanks for getting in touch and I'm sorry for the delay in getting back to you.
If you take your car on a track day, it wouldn't invalidate the whole policy but would just mean that the GAP cover won't apply during the track day.
I hope this helps but if you would like me to answer any further questions at all please let me know
Thanks,
Katie
Hi berlintaxi
Thanks for the enquiry.
We're not able to shed a lot of light on that I'm afraid - we used to be able to offer this type of cover but the underwriters providing that type of policy decided they didn't want to offer it any more.
Please don't quote me on this but when we were offering cover, it was our understanding that motorhomes hold their value quite well and don't depreciate very quickly, especially when compared to cars. However, they are more susceptible to theft and so in lieu of being able to purchase GAP insurance it might actually be more beneficial to take advantage of as many security features as possible.
The only "motorhome" type vehicle we're able to cover at the moment is a VW California, as they're actually classed as a passenger car by the DVLA (if that helps at all!)
Thanks again and if you have any other questions I'll do my best to answer them
Katie
Thanks for the enquiry.
We're not able to shed a lot of light on that I'm afraid - we used to be able to offer this type of cover but the underwriters providing that type of policy decided they didn't want to offer it any more.
Please don't quote me on this but when we were offering cover, it was our understanding that motorhomes hold their value quite well and don't depreciate very quickly, especially when compared to cars. However, they are more susceptible to theft and so in lieu of being able to purchase GAP insurance it might actually be more beneficial to take advantage of as many security features as possible.
The only "motorhome" type vehicle we're able to cover at the moment is a VW California, as they're actually classed as a passenger car by the DVLA (if that helps at all!)
Thanks again and if you have any other questions I'll do my best to answer them
Katie
I have just bough a new car. I have only driven about 300 miles in the two weeks that I have had it. The car, a Mercedes C300, was available at what I think is a very substantial discount of £7,000 from about £39,000.
I have been looking at GAP insurance and at the Vehicle Replacement option, from several insurers. One of these was ALA and I have to compliment Katie whom I spoke to, for the quality and clarity of the service she provided. She suggested that I might be better with another insurer; disinterested advice indeed and as a result I would much like to buy from them. However, there is a snag.
Because I have been fortunate to get a very good discount, there will be no guarantee of a similar benefit in the unfortunate event of a replacement after a total loss. The first thing that the insurance has to do therefore is to make up the discount. In my case the limit on the Invoice cost to replacement cost was limited to £7,500, although that could be increased at further cost to £10,000. Because the lower limit would more or less be taken up by making up the discount, that would leave very little for cost increases in the list price of the car and I could be left with a shortfall which I might not wish, or be able, to make up. It would be a little better if I bought the higher limit but I would still be at risk.
This problem is exacerbated by the fact that ALA, in common with many other insurers and for reasons that are not unreasonable in my view, will only make payment to the dealer to pay for the replacement. In the event of a shortfall, I will HAVE to make up the shortfall otherwise I cannot get a similar car. I do not think that I would be able to pick a cheaper car for the insured amount, although I am not certain about that. If I am unable to make up that shortfall, then I think that ALA will pay me cash only to the amount of the invoice value and I will get no benefit from paying the higher premiums for Vehicle Replacement.
It is for this reason that Katie suggested looking elsewhere, As a result I have obtained a quotation from Total Gap Loss (amongst others whose terms are more similar to ALA) who do not have a limit in the way that ALA do. Their rep on the telephone suggested that my situation was ideally suited to their policy and it certainly looks that way. Their premium was a lot lower than ALA’s despite being a better offer, from my point of view at least.
I have a concern though and that it appears that Total Gap Loss (a trading name of Aequitas Automotive Ltd.) are a newish company whose turnover seems to have increased dramatically over a short period of time. Other than a few reviews I have no real idea of their track record and I am a little concerned about their future. I note that their underwriters are Acasta Insurance of Gibraltar; that’s a name that means nothing to me. To me they might be too cheap and I do not want to end up losing both premium and insurance at a time in the future when the insurance that I want is no longer available to me due to the age of the car at that time.
I am undecided about what to do and would be interested in what others have to say.
I have been looking at GAP insurance and at the Vehicle Replacement option, from several insurers. One of these was ALA and I have to compliment Katie whom I spoke to, for the quality and clarity of the service she provided. She suggested that I might be better with another insurer; disinterested advice indeed and as a result I would much like to buy from them. However, there is a snag.
Because I have been fortunate to get a very good discount, there will be no guarantee of a similar benefit in the unfortunate event of a replacement after a total loss. The first thing that the insurance has to do therefore is to make up the discount. In my case the limit on the Invoice cost to replacement cost was limited to £7,500, although that could be increased at further cost to £10,000. Because the lower limit would more or less be taken up by making up the discount, that would leave very little for cost increases in the list price of the car and I could be left with a shortfall which I might not wish, or be able, to make up. It would be a little better if I bought the higher limit but I would still be at risk.
This problem is exacerbated by the fact that ALA, in common with many other insurers and for reasons that are not unreasonable in my view, will only make payment to the dealer to pay for the replacement. In the event of a shortfall, I will HAVE to make up the shortfall otherwise I cannot get a similar car. I do not think that I would be able to pick a cheaper car for the insured amount, although I am not certain about that. If I am unable to make up that shortfall, then I think that ALA will pay me cash only to the amount of the invoice value and I will get no benefit from paying the higher premiums for Vehicle Replacement.
It is for this reason that Katie suggested looking elsewhere, As a result I have obtained a quotation from Total Gap Loss (amongst others whose terms are more similar to ALA) who do not have a limit in the way that ALA do. Their rep on the telephone suggested that my situation was ideally suited to their policy and it certainly looks that way. Their premium was a lot lower than ALA’s despite being a better offer, from my point of view at least.
I have a concern though and that it appears that Total Gap Loss (a trading name of Aequitas Automotive Ltd.) are a newish company whose turnover seems to have increased dramatically over a short period of time. Other than a few reviews I have no real idea of their track record and I am a little concerned about their future. I note that their underwriters are Acasta Insurance of Gibraltar; that’s a name that means nothing to me. To me they might be too cheap and I do not want to end up losing both premium and insurance at a time in the future when the insurance that I want is no longer available to me due to the age of the car at that time.
I am undecided about what to do and would be interested in what others have to say.
Hi Onespeeder
It was lovely to talk to you the other day - I know you're asking other PHers advice on this one but I hope you don't mind me jumping in - I've had a bit of a chat with my manager this morning and we've clarified a few points that might help
As you rightly say, the payment under our policy is paid to a supplying dealer. One thing that we may not have discussed is that, as the car is sourced by our claims administrators and due to the frequency with which they're doing so, they can command really good discounts. So in the future, they may be able to obtain the car at a similar rate of discount as the one you've received this time, whereas you or I buying the car as members of the general public might get a less significant discount.
Also, the cost of buying the car again is usually not equivalent to the RRP and so, although you can't guarantee discounts, the potential shortfall shouldn't be as worrying as it could first appear.
Just on another point, I'm sorry, I can't recall whether your car has a diesel or petrol engine. If it is the diesel engine and this is part of the reason for the great discount you've had, it is unlikely that diesel cars will increase in cost in the future due to the shift towards cleaner cars (although we do realise this can be a very black and white argument - diesel bad
everything else good! 
)
We would never comment on any other suppliers but just to give a bit of background about ALA, we do have UK based A-Rated underwriters (Lloyd's Syndicate 4444), we're Defaqto 5 Star Rated, are rated 9.7 out of 10 on Trustpilot... and most important of all we're recommended by PistonHeads
I hope some other forum members can rally round with their advice
and if you have any questions at all, please let me know.
Thanks,
Katie
It was lovely to talk to you the other day - I know you're asking other PHers advice on this one but I hope you don't mind me jumping in - I've had a bit of a chat with my manager this morning and we've clarified a few points that might help
As you rightly say, the payment under our policy is paid to a supplying dealer. One thing that we may not have discussed is that, as the car is sourced by our claims administrators and due to the frequency with which they're doing so, they can command really good discounts. So in the future, they may be able to obtain the car at a similar rate of discount as the one you've received this time, whereas you or I buying the car as members of the general public might get a less significant discount.
Also, the cost of buying the car again is usually not equivalent to the RRP and so, although you can't guarantee discounts, the potential shortfall shouldn't be as worrying as it could first appear.
Just on another point, I'm sorry, I can't recall whether your car has a diesel or petrol engine. If it is the diesel engine and this is part of the reason for the great discount you've had, it is unlikely that diesel cars will increase in cost in the future due to the shift towards cleaner cars (although we do realise this can be a very black and white argument - diesel bad
everything else good! )We would never comment on any other suppliers but just to give a bit of background about ALA, we do have UK based A-Rated underwriters (Lloyd's Syndicate 4444), we're Defaqto 5 Star Rated, are rated 9.7 out of 10 on Trustpilot... and most important of all we're recommended by PistonHeads
I hope some other forum members can rally round with their advice
and if you have any questions at all, please let me know.Thanks,
Katie
Hi, what's the position with respect to modifications? It was mentioned earlier in the thread, but no answer given.
My car isn't modified now, but in the future I may decide to modify it. If I had a GAP Back to Invoice policy, I assume that the "Invoice value" I return to in the event of a total loss is the "from dealer" purchase price, and you just ignore the modifications value, and the policy isn't void just because of the existence of modifications (or is it)?
Can you point me towards your T&Cs please so I know where it is covered?
Thanks
My car isn't modified now, but in the future I may decide to modify it. If I had a GAP Back to Invoice policy, I assume that the "Invoice value" I return to in the event of a total loss is the "from dealer" purchase price, and you just ignore the modifications value, and the policy isn't void just because of the existence of modifications (or is it)?
Can you point me towards your T&Cs please so I know where it is covered?
Thanks
Hi S7uey
Thanks for getting in touch and I'm sorry for any confusion!
We are in the process of arranging extended warranty with a new supplier and we're hoping to have this available soon - it does unfortunately mean we can't quote at the moment however if you would like me to contact you once it's available please feel free to pop me an email (katie@ala.co.uk) with your details.
Thanks,
Katie
Thanks for getting in touch and I'm sorry for any confusion!
We are in the process of arranging extended warranty with a new supplier and we're hoping to have this available soon - it does unfortunately mean we can't quote at the moment however if you would like me to contact you once it's available please feel free to pop me an email (katie@ala.co.uk) with your details.
Thanks,
Katie
Hi bungle
Thanks for your message and I'm sorry about that, I think that customer may have emailed directly after the initial question but it'd be good to clarify the position for you and other PHers
The GAP insurance would not be invalidated if you decided to modify your car in the future - as long as you notify your motor insurer about any modifications you make to the car, the GAP insurance will still pay out in the event of a total loss, we just don't cover the cost of the modifications themselves.
The policy wording doesn't specifically refer to modifications as we're covering the original purchase of the vehicle, and so by implication it wouldn't cover any aftermarket modifications to the car. Although it is unlikely to happen, one thing to mention is that certain modifications can have a detrimental effect on the insurer's market value of the car at the time of a total loss. If this were to happen the GAP insurance cannot cover any reduction in the insurer's settlement as a result of the modifications.
I hope this helps and if you do have any other questions at all, please let me know.
Thanks,
Katie
Thanks for your message and I'm sorry about that, I think that customer may have emailed directly after the initial question but it'd be good to clarify the position for you and other PHers
The GAP insurance would not be invalidated if you decided to modify your car in the future - as long as you notify your motor insurer about any modifications you make to the car, the GAP insurance will still pay out in the event of a total loss, we just don't cover the cost of the modifications themselves.
The policy wording doesn't specifically refer to modifications as we're covering the original purchase of the vehicle, and so by implication it wouldn't cover any aftermarket modifications to the car. Although it is unlikely to happen, one thing to mention is that certain modifications can have a detrimental effect on the insurer's market value of the car at the time of a total loss. If this were to happen the GAP insurance cannot cover any reduction in the insurer's settlement as a result of the modifications.
I hope this helps and if you do have any other questions at all, please let me know.
Thanks,
Katie
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