Gap Insurance - Car Lease - Van Lease - Pickup Lease

GAP insurance for your leased car, van or pickup

Gap Insurance provides financial protection in the event that your vehicle is written off, stolen or destroyed by fire. In a total loss situation, your insurer (or third party insurer if not your fault) will pay a market value settlement figure for the vehicle to your leasing company; the leasing company will then require a further payment to settle early termination of your finance agreement (financial gap). The motor insurer's settlement figure after a total loss will not be enough to settle the finance outstanding on your vehicle; in this situation you would be responsible for the finance gap between the insurance payout and finance settlement. Taking Gap Insurance means you will not be out of pocket in covering any shortfall between the two.

For example:

Your vehicle is written off or stolen 12 months into a two-year contract

The finance company requests a settlement figure of:

Your insurance company pays out the market value for your vehicle:

The difference:

Customer responsible for:

GAP insurance pays out:

Your shortfall:

Conditions apply*

We can offer GAP insurance for leased vehicles at a one off cost of £189 covering the entire contract period. If you would like to discuss any aspect of this with one of our customer service advisors, call us on 01270 617540. Please be aware that you must apply within 1 month of taking delivery of your lease vehicle.

Please read the email below from one of our customers, it highlights the main reason why GAP insurance is an important aspect of protecting yourself financially in case of an accident resulting in your vehicle being written off. (Except for the customer’s personal details, this email has not been edited in any way since it was received.)

From: ********************
Sent: 27 December 2010 17:19
To: d****.l*****
Subject: Incident report

Hi David,

Firstly.......Merry Christmas break and a Happy New Year to you and the team...

Secondly........some bad news.......and in accordance with the leasing policy I have to inform you the car has been involved in an accident today at about 2pm only two minutes from home.

I am not an expert on such matters, but I believe the car to be a "write-off".

I have notified ******* assist and the car has been recovered and is in holding until Wednesday, where it will be moved onto a local ******* garage.

All people involved are physically ok.

The accident involved an old lady who basically lost control, entered our lane and drove straight into the driver’s rear, damaging most of the rear bodywork, smashed the back axle out, collapsing both rear wheels, shoved us into a parked car and damaged the rear passenger bodywork.

Full emergency assistance was in attendance at the scene, details were taken, and the police have initial statements from everyone involved and will consider charging the other driver who has admitted full responsibility.

So now the 64,000 dollar question - where do we go from here??? I have notified our Insurance company and as GAP insurance was taken out through you, we may need advice on how to claim with it.

******** and I are away from the **/**/2011 to the **/**/2011 (abroad), so any replacement car etc etc will be best left to be arranged until we return.

Please call us as soon as possible to discuss this further when you are next in the office.



Luckily this customer had taken out GAP insurance only weeks before this incident. If GAP cover is not taken and this was to happen then you would be liable to pay the GAP between the settlement amount requested by the funder who owns the car and what your insurance company value the vehicle at and are willing to pay even if it was due to somebody else’s negligence. Please do not take the risk, cover yourself for only £189 for the entire period of your contract.

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