Lease & Contract Hire Gap Insurance

In the event of your vehicle being written off in an accident or stolen, our Lease and Contract Hire Gap Insurance can offer priceless financial protection. It will pay the difference between the outstanding finance balance and the settlement you receive from your motor insurer.

Cover will include up to a maximum of £500 motor insurance excess.

If your agreement commits you to £20,000 in total payments, but your vehicle is declared a Total Loss and your motor insurer settles at £14,000, this would leave a £6,000 shortfall on your lease.

A Lease Gap Insurance policy from Direct Gap is designed to cover this difference, settling the outstanding amount in line with the terms of your policy.

Because the value of your car at the time of being declared a total loss will be different to when you first bought it, your motor insurer will offer you a settlement in line with its current worth, rather than the value at the time of purchase.

Recent research shows that the average car depreciates by as much as 60% in its first three years which, if your car were to be written off, could leave you with a significant deficit to pay on a vehicle you can no longer drive.

That’s a situation that nobody would relish, which is why our Finance Gap Insurance is worth considering as a sensible option to mitigate any damaging costs if the worst were to happen to your car.

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If your vehicle is declared a Total Loss, you may still have a significant balance remaining on your hire or lease agreement. This is because your motor insurer’s settlement is based on the vehicle’s market value at the time of the incident, rather than the original cost or total agreement value.

A Lease Gap Insurance policy from Direct Gap is designed to cover this shortfall. Without this protection, you would remain liable for the outstanding balance, leaving you to continue payments on a vehicle you no longer have.

Gap Insurance for lease hire is not a legal requirement in the same way that standard motor cover is. But it could prove a shrewd financial decision if your vehicle were to be declared a total loss.

If your car got stolen or was written off and you had not taken out a Gap Insurance policy, the leasing company would expect you to pay off the remainder of the lease. This could run into many thousands of pounds.

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A total loss (often referred to as a write-off) is when your motor insurer determines that your vehicle is either beyond economic repair or has been stolen and not recovered.

In these situations, the cost of repairing the vehicle is considered uneconomical compared to its market value, or the vehicle cannot be returned. Your insurer will then offer a settlement based on the vehicle’s value at the time of the incident.

If your vehicle is declared a Total Loss and you have Contract Hire & Lease Gap Insurance in place, the process will typically follow these steps:

• Your motor insurer confirms that the vehicle is a Total Loss
• A settlement figure is obtained from your finance or lease provider
• Direct Gap will then settle the difference between the insurer’s payment and the outstanding finance balance, in line with the terms of your policy
• Your initial rental may also be reimbursed, up to a maximum of £3,000

Yes, if your car is written off in an accident that was your fault, your Contract Hire Gap Insurance will still cover you. However, some exclusions apply. For example, if the driver is under the influence of alcohol or non-prescription drugs, the policy will not be valid. The same goes for any illegal activity, fraud or an act of wilful negligence. Please see your policy wording for a full list of the exclusions.

You need to wait until your motor insurer has declared your vehicle a total loss before you can make a claim. Once they have done that, the process is perfectly straightforward:

1. Check your policy wording for claims contact details (if you're unsure, give our team a call on 01422 756 100).
2. Fill out the claims form and send requested evidence.
3. Your paperwork will be checked.
4. If all is approved, your money will be sent to you via bank transfer.

For more information, head over to our guide on how the claims process works.

Never accept an offer from your motor insurance provider without approval from our claims team as this may invalidate your policy and in most cases we can secure a better offer you.

Our Lease / Contract Hire Gap Insurance is not suitable for vehicles purchased on a PCP agreement. If you have purchased your vehicle using Personal Contract Purchase (or even Hire Purchase) then you may wish to consider our Return to Invoice or Vehicle Replacement Gap Insurance

Whatever your situation, here at Direct Gap we’re committed to providing the solution that best suits your requirements.

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Yes, our Lease Gap / Contract Hire Insurance policy is be suited to Contract Hire vehicles.

It couldn’t be simpler to get a Gap Insurance quote. Just enter your vehicle’s registration number, purchase price and the desired length of policy.

We will provide you with a quotation in a matter of seconds and you can be protected in minutes.

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Yes, if you wish to discontinue your policy then you can cancel. Usually, to be entitled to a refund you need to do this within 14 days of the cover’s start date. However, we offer you a grace period of 30 days. Beyond that period, you'll be refunded on a pro-rata basis, excluding any arrangement fees that may be applicable.

Taken delivery within the last 180 days.

The policy should always be in the name of the owner/hirer or registered keeper of the vehicle.

Yes, up to £500 in the event of a total loss claim.

Yes; you are covered when keys are stolen from your home or office which results in vehicle theft. However you must exercise due diligence and take appropriate steps to safeguard both the keys and the vehicle.

No insurer, including your motor insurer, will provide cover for wilful negligence. For example if you leave the keys in the vehicle and you go off to pay for fuel which results in the vehicle being stolen.

Please see your policy wording for a full details. However, the main exclusions of Lease Gap Insurance are when the vehicle becomes a total loss as a result of:

• The driver being under the influence of non-prescription drugs or alcohol
• Being involved in illegal activity
• Fraud or an act of wilful negligence e.g., leaving keys in the ignition whilst the vehicle is unattended.

Yes, your initial rental will be protected up to £3,000.

Yes. Your Lease & Contract Hire Gap Insurance will include all drivers provided that they are covered on your comprehensive motor insurance policy to drive the vehicle as a named driver.

You are not only covered to use your vehicle in the UK.

Subject to your comprehensive motor insurance being extended to the relevant country, you are covered in Ireland, Isle of Man, the Channel Islands, Switzerland, and the countries of the European Economic Area.

You can pay for your policy in full using a credit or debit card, with no additional card charges.

Alternatively, you may have the option to spread the cost over 10 monthly payments. This facility is provided by an independent finance provider, and a service fee will apply. If this option is not available online, please contact our team who may be able to assist.

We are an internet-based provider and as such we have lower overheads than motor dealers. As a result of the high volume of Gap Insurance that we sell annually, we can provide quality policies at the keenest prices.

You can be confident that our prices are lower than those quoted by dealers and many other websites. Paying less than you have been quoted elsewhere in no way means that you are buying an inferior product, it just means that they are making more profit from your purchase!

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Once your payment has been processed, your policy documents will be issued to you, usually within 2 hours.

You will also receive confirmation of your payment. Both documents should be retained for your records.

If you do not receive your policy documents or payment confirmation within this timeframe, please contact our team on 01422 756 100.

Your vehicle must be a new Lease or Contract Hire vehicle.