Early Termination Insurance

Yes, early termination of your car’s lease, PCP or contract hire agreement is possible. However, doing so usually means having to pay a substantial amount of money. Depending on the terms of the arrangement, you may even be required to pay off the full value remaining on the contract, which could add up to many thousands of pounds.

That instance is the worst-case scenario: you’re being charged in full, without the benefit of actually being able to use the vehicle. But some situations may mean you have no choice but to end the agreement early. In some specific instances, Early Termination Insurance can cover the amount you owe to the finance company.

If you need to end your agreement before the vehicle’s return date, ETI will cover:

• The early termination fees owed to the finance company OR
• The difference between the early termination fees and the sale value, if your agreement allows the finance company to sell the vehicle.
• Additionally, if you decide on an early termination of your car’s lease or finance arrangement but your contract states there are no fees to pay, this policy will pay you £500.

You will be covered by your ETI policy if you have to return your vehicle early due to: 

• Accidental death
• Sickness for a minimum of 30 consecutive days
• Loss of your driving licence for six months or more due to medical reasons
• Being transferred for work outside of the policy territorial limits
• Non-voluntary bankruptcy
• Expatriation to your country of origin due to a change in legal requirements/English law.

Please see your policy wording for full terms and conditions.

You will not be covered by ETI if you have to end your lease or finance agreement due to:

• Covid-19 or any pandemic declared by the World Health Organization
• Death to due self-inflicted injury, alcohol or drug abuse
• Death or loss of driving licence in the first 12 months of cover due to pre-existing medical conditions
• Death due to medical conditions diagnosed as terminal before the start date of the policy
• Any excess mileage charge or repair costs
• Any loss in vehicle value due to damage or exceeded contract mileage
• Any VAT element of the credit/finance agreement
• Any difference between the Glass’s Guide retail value and the actual sale value of the vehicle
• Any loss from an incident that renders the vehicle not roadworthy
• Any loss occurring outside the territorial limits.

Please see your policy wording for full terms and conditions.

As with any policy, some restrictions apply:

• Your principal residence must be in the UK.
• Your vehicle must be a private motor car, mini-van, van, pick-up truck, light truck, motorcycle or sport utility vehicle. Anything else is not eligible for cover.
• Your vehicle must have no more than seven seats and weigh no more than 3.5 tonnes.
• Your vehicle cannot be insured under a commercial motor trader’s policy.

Please see your policy wording for full terms and conditions.

Unlike standard motor insurance, taking out ETI is not a legal requirement. However, the early termination of a lease or contractual arrangement can prove enormously expensive and could leave you with a major financial headache.

Of course, no one plans for things to go so wrong that they have to return their vehicle early. But if the worst does happen then an Early Termination Insurance policy can provide that all-important protection.

If you require an early termination of your lease and therefore need to claim via your ETI policy, there are three ways you can do this:

• Send an email to [email protected]
• Call 0333 207 4331 (lines open 9am-5pm Monday to Friday)
• Write to ETI Claims, Davies Group Building, PO Box 1392, Preston, PR2 0XE

Your claim will be registered and you’ll be sent a form to be completed and returned, along with any documents that are needed to support your claim.

Our Early Termination Insurance offers claim limits of £7,000 to £15,000.

Our ETI is available from as little as £190. When you factor in how much it could cost for an early termination of your car’s lease or finance agreement, we think it’s a small price to pay for that peace of mind.

Get a Quote.

You can either pay for your Early Termination Insurance in one go, or you can choose to make monthly instalments – whichever works best for you.

The insurer of our ETI policies is Acasta European Insurance Company Limited, (registered no. 96218). It is authorised and regulated by the Gibraltar Financial Services Commission and subject to regulation by the FCA and Prudential Regulation Authority for the conduct of UK business. The insurer is covered by the Financial Services Compensation Scheme.

Please see your policy wording for full terms and conditions.

No, you cannot transfer your Early Termination Insurance to another vehicle. Should you no longer have possession of the vehicle, you can cancel your policy.

Please see your policy wording for full terms and conditions.

Yes, it is possible to cancel your policy. If you do so within the first 14 days (as long as a claim has not been made), you will receive a full refund. After that, you will receive a refund on this sliding scale:

• Between 14 days and 25% of original policy duration: 50% refund
• Between 26-50% of original policy duration: 25% refund
• Between 51-75% of original policy duration: 10% refund
• More than 75% of original policy duration: No refund

Please see your policy wording for full terms and conditions.