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Finance and Contract Hire Gap Insurance

What this will do for you.

In the event of an insurance write off as a result of an accident, fire or theft – our Finance and Contract Hire Gap Insurance will pay the difference between your motor insurers write off settlement – and what your lender or leasing company require to end your finance or lease agreement.

This insurance is not available to everyone.
Please refer to ‘Can I Buy It?’ below.

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What will Finance & Contract Hire Gap Insurance do for you?

When a write off occurs, a motor insurer will only pay the market value at the time of write off. So for example, in year three of ownership an insurer might pay 30 – 35% of the original vehicle purchase price, which in some cases may not be enough to repay what is owed the lender or leasing company.

Finance & Contract Hire Gap Insurance will pay the difference between the motor insurers write off settlement and what is needed to repay the lender or leasing company to end the agreement. This protection provides motorists with an opportunity to protect against the potential for financial shortfall. Finance & Contract Hire Gap Insurance is available to motorists who have a dealer ,broker or leasing company arranged Hire Purchase, Lease Purchase, PCP, Lease and Contract Hire plan. Our Finance and Contract Hire Gap Insurance can also cover your advance rentals for a small premium supplement


A simple example of how Finance & Contract Hire Gap Insurance works

  1. A customer buys a car for £15,000.00 and finances it over a 5 year period.
  2. After two years of ownership, the car is stolen and written off by the insurer.
  3. The insurer agrees to pay the market value at time of write off which is £7,500.00.
  4. The lender (finance or leasing company) provide a settlement figure of £9,750.00 which they require to end the agreement.
  5. In this example, the customer would need to pay £2,250.00 just to clear his finance agreement – and pay a deposit for the next vehicle.

Subject to choosing a sufficient level of cover, Finance & Contract Hire Gap Insurance would pay that shortfall directly to the lender on behalf of the policyholder.

As the name suggests – it is suitable for Contract Hire users too.

If you are operating your vehicle under a Contract Hire agreement, we encourage you to read the terms and conditions of your agreement to understand what is required of you in the event of a write off. In most cases, the terms and conditions of a Contract Hire agreement require you to a) provide fully comprehensive insurance for the period of the arrangement and b) pay all outstanding rentals due, plus vat from the date of the write off. For example, if you are contracted to pay monthly rentals of £420 including vat per month on a 3 year agreement you may be required to pay the Contract Hire company £7,560.00 if your car is written off after 18 months of use. Your insurer will pay the Contract Hire company the market value at time of loss – and you may be required to pay the outstanding rentals and potentially other costs to end the agreement. Some Contract Hire companies will reduce the outstanding rentals to some degree – but you can still be left with a substantial bill. Always check what is required of you within your particular agreement and consider the potential financial impact.

The statistics do not lie.

According to the Association of British Insurers, over 500,000 vehicles are written off every year. To put this into perspective, that means 57 vehicles per hour, every hour, every day and night are written off. Whilst those numbers include road traffic accidents, professional theft forms a significant part of those statistics. While vehicle security systems have improved to the point that theft by ‘joy riders’ is now a very rare occurrence, there is an extremely Car Thief lucrative market for the professional thief who will find a way to overcome the very best security systems – even if it means first stealing the keys. A vehicle is often our second highest investment and it’s portability and value even in dismantled component part form make it a very attractive and easy target. The statistics do not lie, 57 vehicles per hour every hour night and day – 365 days per year.

It is extremely low cost by comparison.

Is it good value? Consider these comparisons and examples. The cost of budget priced mobile phone insurance for an iPhone or smartphone is approximately £8 per month which means over a three year period we might pay £288.00 to protect a £500 risk. By comparison and as an example, Finance & Contract Hire Gap Insurance on the other hand can cover up to £10,000.00 of risk on a £25,000.00 car for as little as £94 for a full three year period.

So, do you need it and is it a worthwhile investment and good value? That is for you to decide, but you must agree based on the ABI’s write off statistics – there are compelling reasons to give it serious consideration.


It might be hard to find any other Finance Gap Insurance with these features*


  • Optional advance rentals cover – protect your initial advance rentals (3, 6 and 9 months advance rentals) for a small additional supplement (please call for further details),
  • Our policies do not have a ‘Market Value’ clause – our policies pay from to your motor insurers settlement,
  • Our policies cover unlimited factory fitted options and dealer fitted accessories including paint & upholstery treatment, insurance premiums, non transferable warranties and even road fund licence costs,
  • Cover includes theft where the thief first gains access to the vehicle keys – a common form of theft today,
  • Our policies will settle outstanding finance or lease rentals even if the value exceeds the original purchase price of the vehicle,
  • Up to £250 will be paid toward your motor insurers excess deduction in a write off settlement,
  • Our policies cover all drivers named on your motor insurance policy – including provisional licence holders,
  • Modified vehicles covered providing your motor insurer has approved and insured the modification,
  • Written commitment with the terms to settle your claim within 10 days of your motor insurers settlement,
  • Cover available for new and used cars, light vans, motorcycles and motorhomes up to 10 years of age and 100,000 miles at the start of the policy,
  • 1 – 5 year cover available on most Gap Insurance products,
  • No claim limit.

Your ‘Peace Of Mind’ Features

  • Our policies and added benefits are better than anything else on the market!,
  • Our insurer does not reserve the right to cancel your policy during the term of the policy – beware of those that do,
  • All policies covered by the Financial Services Compensation Scheme (FSCS),
  • Major ‘A’ rated insurer with London branch and UK claims team,
  • We are in our 11th year of trading online and are a directly FSA/FCA regulated specialist Gap Insurance broker, trusted by thousands of customers every year since 2007,
  • We are probably the most experienced and knowledgeable Gap Insurance people in the market – 10 years on-line and 30 years within motor dealerships,
  • Independently rated 5 Star cover,
  • Featured in Which? magazine.

Customer Friendly Features

  • Free policy amendments, no charge for address or registration number changes,
  • Our Finance Gap Insurance can be purchased within 180 days of the delivery/purchase date,
  • Our policies are cancellable with a pro-rata refund of unused premium less a £20 cancellation fee charged by the insurer,
  • Change your vehicle during your period of cover and receive a credit of unused premium to use toward the purchase of a new policy from us for your next vehicle – without a cancellation fee,
  • FREE transfer to next of kin upon death.

The above list represents some of the key benefit features, please refer to the full policy Terms and Conditions for greater detail. Always read the policy terms & Conditions before buying anywhere! In the event of a claim the cost of fuel is not covered. Please refer to policy terms and conditions for more detail. Negative equity carried across from a previous vehicle and finance agreement (in part exchange) can be also be covered for a small additional premium – Please CALL 01438 870615 for further details.

* These features apply to policies purchased on or after 1st February 2017, for  terms and features on policies purchased before the 1st February 2017 please refer to your original policy documents issued.


You can buy this cover if…

  • Your car, van, motorhome or motorcycle is under 10 years of age and less than 100,000 miles at the start of cover,
  • You are the person/company named as the policyholder or named driver on the motor insurance policy,
  • You are the V5 registered keeper or you are named as the customer on the finance/lease hire agreement,
  • Your car, van, motorhome or motorcycle invoice price does not exceed £75,000 at time of purchase,
  • Your vehicle was acquired using a dealer or contract hire company arranged finance or lease plan within the last 180 days,
  • Your vehicle is listed in the Glass’s Guide and principally used in the UK,
  • Your vehicle was supplied by a VAT registered dealership, broker or Contract Hire company.

You can’t buy this cover if…

  • You have purchased your vehicle with cash or financed using a personal loan,
  • You have taken delivery of the vehicle more than 180 days ago,
  • Your vehicle is used for competition, road racing, pace making or competition,
  • Your motor insurance is a Motor Trade policy,
  • You have purchased your vehicle from an auction,
  • Your vehicle has been modified from the Manufacturer’s specification without your motor insurers agreement,
  • Vehicles over 3500kg gross weight.
  • Your vehicle is used as a Taxi, Minicab or Emergency Service vehicle unless a 20% premium supplement is paid,
  • Your vehicle is not listed in UK Glasses Guide or is a kit car.

For full eligibility and policy Terms & Conditions please view the Finance & Contract Hire GAP Insurance policy document.


We exceed expectations and have led the market for 9 years.

All insurances on this web site have been designed by us because we know Gap Insurance and the Gap Insurance market. Pay attention to the Tyre Insurance policy details

Using our 40 years experience, we work with our insurer to eliminate the negatives aspects of many Gap Insurance policies on the market, improve customer benefits and make our Terms and Conditions transparent, fair and simple to understand. We have reduced confusing ‘jargon’ to a minimum and we hope like thousands of others – you enjoy the result.

Please view the policy details here

You can open, download or print the policy Key Facts and Terms and Conditions document by clicking on the pdf document icon or link text below. The policy Key facts and our Initial Disclosure Document is also available for viewing or print below;

Comparer beware!

The Terms and Conditions within any Gap Insurance can be substantially different dependent upon where you buy. For example, a number of retailers including your vehicle dealership might be using the same insurer – but the inclusions and exclusions within the Terms and Conditions are likely to be substantially different and could cost you a great deal of money in the event of a claim.

The differences are not obvious but are very important to understand. As a Gap Insurance specialist, we would be happy to compare our policy with that offered to you by your dealer or other on-line provider. We will give you an honest and transparent comparison using our knowledge and experience.

Do not make the mistake of buying on price – it could cost you dearly when you come to make a claim.

We research the market regularly to make sure our features and benefits are more customer friendly than anything else on the market.

The policy Terms & Conditions and features apply to policies purchased on or after 1st February 2017, for terms and features on policies purchased before the 1st February 2017 please refer to your original policy documents issued.

Significant Exclusions.

All insurances have limitations and exclusions. – Ours are minimal and here are the most significant;

This policy does not cover….

  • Advance rentals are not covered – unless an additional supplement has been paid (cover available for 3, 6 and 9 months advance rentals – please call for further details),
  • If your claim declined by your motor insurer,
  • Arrears or charges relating to arrears on your agreement,
  • Any deposit, part exchange value or advanced rentals you paid to reduce your monthly payments – unless an additional premium has been paid,
  • Negative equity carried forward from a previous finance agreement is not covered by this policy unless an additional premium supplement of 16% is paid,
  • VAT if you are vat registered,
  • The cost of fuel originally charged by your dealer.
  • Any write-off claim where the insured driver of your vehicle was illegally under the influence of alcohol or recreational drugs.
  • The insurer charges a £20 cancellation fee (beyond the initial 30-day cooling off period), except where a new policy is purchased in which case no fee is charged.


The above list is not exhaustive. Please refer to the policyTerms and Conditions document for more details on policy limitations and exclusions. See full Terms and Conditions document. If you have any questions regarding the policies we offer,  please feel free to contact us. We offer many ways to reach us, click here to contact us.


* The policy Terms & Conditions and features apply to policies purchased on or after 1st February 2017, for terms and features on policies purchased before the 1st February 2017 please refer to your original policy documents issued.

For Your Peace of Mind

Read our testimonials

"Thank you for giving me a replacement gap cover insurance for my new car free of charge. After the hassle of having my car written off, this is a nice little bonus. Also the experience of claiming from your company was very pleasing and hassle free" Mr D Day, Kent, February 2016


GAP Guide

Click on the image below to read our top Ten Guide to buying GAP insurance