To comply with Financial Conduct Authority legislation and more importantly to ensure we provide you with the correct information and to enable you to make an informed decision about GAP insurance please read the below.
GAP Insurance (Finance GAP) - £15,000 cover
Are you taking out a personal contract hire agreement or a business contract hire agreement and will be arranging a fully comprehensive insurance policy to cover your lease car? YES
If your car is written off (through an accident, fire or theft – fault or no fault) during the period of your leasing agreement, does your insurance company guarantee to pay you back the FULL SETTLEMENT due for terminating your lease agreement on the vehicle? NO
If your vehicle was written off YOUR INSURANCE COMPANY WILL PAY MARKET VALUE FOR THE VEHICLE but you would also owe the settlement amount for the finance element of your contract, are you prepared to make up whatever the shortfall is yourself? (Your option if you so desire).
Gap Insurance will offer financial protection in the event of your vehicle being written off stolen or destroyed by fire. In a total loss scenario, your insurer will pay a settlement figure for the vehicle but THEY WILL NOT SETTLE THE WHOLE OF YOUR OUTSTANDING LEASE AGREEMENT, your funder (leasing company) will request a payment from your insurance company to settle early termination of your finance agreement which includes the value of the vehicle. Your motor insurer's settlement figure after a total loss claim may not be enough to settle this agreement. In this situation, you would be responsible for the finance gap between insurance payout, and finance settlement. Gap Insurance will ensure that you are not left out of pocket by covering any shortfall between the two.
For example: Your vehicle is written off or stolen 12 months into a three-year contract, The finance company will request a termination figure of £18,000 (including the settlement of the finance agreement) Your insurance company pays out £11,500 (the market value of the car), in this case you would be responsible for the difference of £6,500. GAP insurance would pay out this shortfall.
We can provide GAP insurance at a cost of £199 for the entire contract period and £15,000 of cover, our GAP cover is tailor made for leasing agreements. For easy payment we can take a debit or credit card or you can pay by making 10 monthly interest free amounts.
Blueroc Ltd t/a Leasing4u is authorised and regulated by the Financial Conduct Authority, Firm Ref No 660124.