“ 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.
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
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.
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.
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 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.
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.
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.
For full eligibility and policy Terms & Conditions please view the Finance & Contract Hire GAP Insurance policy document.
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.
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;
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.
All insurances have limitations and exclusions. – Ours are minimal and here are the most significant;
This policy does not cover….
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.
"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