Lease/Contract Hire GAP Insurance

Lease/Contract Hire GAP Insurance provides cover to individuals and companies who hire a vehicle using a lease or contract hire agreement.

What does Lease/Contract Hire GAP Insurance cover?

In the event your vehicle is written off or stolen, Lease/Contract Hire GAP Insurance will pay the difference between what your motor insurer pays you and any outstanding amount you owe the vehicle provider.

How do Lease/Contract Hire GAP policies work?

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You lease a vehicle from a leasing company

Let's say you hire a vehicle worth £31,500 from a leasing company over a 4 year period for £729 per month. The total you will pay the leasing company over the length of the contract is £35,000, including interest.

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The vehicle is written off

16 months later, after the vehicle is involved in an accident, your motor insurer deems the vehicle a 'total loss' due to the amount it will cost to repair it. Due to the vehicle losing value over time (depreciation), the vehicle is now only worth £20,475 and this is what your motor insurer agrees to pay you as a settlement.

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You need to pay the remainder of your lease agreement

As you still have 32 months left to run on your lease agreement, you will need to pay the leasing company £23,328 as a settlement fee.

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Your GAP policy has you covered

Our Lease/Contract GAP Insurance policy will pay the difference between what your motor insurer pays you (£20,475) and your lease agreement settlement figure (£23,328), which in this instance would be £2,853.

Lease/Contract Hire features & benefits

Covers vehicles up to £75,000

Provides up to 5 years GAP cover

Pays £250 towards your motor insurance excess

Covers manufacturer fitted extras

Covers cars and vans

Available to individuals and companies

Covers all drivers who are covered under the motor insurance policy

Covers up to 3 monthly rentals on a new lease agreement

Lease/Contract Hire policy restrictions

Vehicle must be deemed a ‘total loss’ by your motor insurer

Vehicle must be less than 12 months old

You must have Comprehensive Motor insurance in place

You must be 18 years old or over

You must be a resident of the UK

Vehicle must have been purchased within the last 90 days

Vehicle must be provided as part of a lease or contract hire agreement

Your Lease or Contract Hire Agreement cannot exceed £1,000 per month

For details on all policy benefits and restrictions, please read our Lease/Contract Hire policy wording before purchasing.

Should I buy a Lease/Contract Hire GAP Insurance policy?

A Lease/Contract Hire GAP policy could be beneficial to you if:
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You have hired a vehicle through a Lease/Contract hire company

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You wish to avoid paying finance repayments for a vehicle you no longer have

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You want to protect yourself against paying a large settlement figure if your lease vehicle is written off or stolen.