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Lease & Contract Hire Gap Insurance

5* Rated Lease & PCH Gap Insurance With A 30 Day Moneyback Guarantee

Thanks to depreciation your lease car could be worth much less than the amount you have financed. If the worst happens, you could be liable for the difference between your motor insurer’s settlement figure (typically, the value of the vehicle at the time) and the outstanding balance; if the vehicle is declared a total loss.

Lease & Contract Hire Gap Insurance from Direct Gap can remove that stress, paying the difference between any outstanding finance balance on your lease and the amount your insurer pays out following a total loss (or ‘write off’). We’ll even include up to £1000 towards your motor insurance excess.

Protect your lease car today and join thousands of happy customers choosing 5* Feefo-rated PCH Gap Insurance from Direct Gap…

This policy is for individuals with a vehicle on Lease or Contract Hire. If your vehicle is financed via a PCP or Hire Purchase (HP) Agreement then this policy is not suitable for you. Our Return To Invoice policy offers great coverage in these circumstances.

About Our Lease & Contract Hire (PCH) Gap Insurance

  • Pays finance and settlement charges
  • Covers contract hire and leases
  • Protect your deposit of up to £2,000
  • Cover from 1 to 5 years
  • 30-day money-back guarantee
  • Unlimited claim limits on vehicles up to £50,000
  • Covers insurance excess up to £1,000
  • Covers all drivers on your insurance policy

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Comprehensive Insurance
Potential loss

Only £ 8,550 would be covered by your Comprehensive Car Insurance
leaving a gap of £10,450

Protect yourself with GAP Insurance

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Why Should I Consider Lease & Contract Hire Gap Insurance?

Even leased cars (which are usually new) suffer depreciation, typically losing 15-30% of their value within the first year of driving, rising to 50% over a three year period. If yours is declared a ‘total loss’ through fire, theft or accident, for example, your insurer will usually settle at the amount the car is worth at the time; leaving you liable for the outstanding finance balance.

In the UK a car is declared a write-off every 90 seconds, so it’s no wonder more and more drivers are choosing to protect their lease car using Direct Gap.

Our Gap Insurance will pay the difference between your final settlement figure and any amount still outstanding on your lease. With cover starting from £35 with no claim limits up to £50k, including all named drivers, why not get peace of mind today with Direct Gap?

Why Choose Direct Gap For Your Lease Gap Insurance

Here are just some of the reasons why you can rely on us to provide the perfect cover for your pride and joy:

•  Knowledge: Our fully trained professionals are specialists when it comes to car finance and Gap Insurance.

•  Responsibility: We’re fully authorised and regulated by the Financial Conduct Authority and we hold ourselves to the very highest standards.

•  Integrity: We don’t make any commission on the sale of our policies – we’ll always work with your best interests in mind.

•  Flexibility: We want you to find a Contract Hire Gap Insurance policy that works for you and your car, so we’ll do all we can to tailor your cover accordingly.

•  Service: Our customers are our number one priority. You can see from our 5-star Feefo rating and the comments below how much our work is appreciated.

See what our customers are saying about us

Scott Selbie 8 Sep 2023

55 star rating

Very competitively priced and easy to complete website I would recommend to others

Peter Egerton 1 Feb 2024

55 star rating

It’s so easy to set up and I’m confident in the policy that it covers all my costs.

Stuart Weatherdon 8 Jun 2023

55 star rating

Straight forward to buy & much cheaper than the dealer...👍 hopefully I will never need it, but its peace of mind if the unthinkable should happen...

Julian Portman 26 Jan 2024

55 star rating

Very easy to arrange. Competitive price. Used with two previous cars.

Gary (Manchester) 31 Oct 2023

55 star rating

Straight forward & easy to use website. Explained what was covered, easy to understand & complete purchase. Much better value than what was offered by car dealership.

Surjit Pangli 15 Mar 2023

55 star rating

Easy to use site. Considerably less than dealer's quote.

Dave Wilkinson 6 Sep 2023

55 star rating

Very straight-forward and a compoetitive price.

Ranjit Ghag 11 Dec 2023

55 star rating

I have previously used this service and find it amazing, competitive prices and cheaper than buying direct from dealers.

Gillian Millar 12 Jan 2023

55 star rating

Nice and easy website and good value compared to main dealer.

Gary Smith 13 Jul 2023

55 star rating

Competitive rates and very straight forward to use. Thank you

Richard. Alan. Smith 16 Jul 2023

55 star rating

Second time used for gap insurance, no hassle just straight forward application process and a sensible cost. Would highly recommend.

Christine Davies 14 Sep 2023

55 star rating

Straightforward application process. Competitive premium rates. Have dealt with company before.

MARK HURDLEY 28 Oct 2023

55 star rating

Brilliant, a lot cheaper than getting it through the dealer and so easy to set up, will tell my family to use you in the future.

Noel Egbury 22 Jun 2023

55 star rating

Very quick to obtain a quote and much, much cheaper than the main dealer price offered at the point of sale.

Michael Voyzey 4 Jan 2024

55 star rating

Really easy to purchase a Gap Insurance Policy this is my second one with Direct Gap

David Pibworth 3 Feb 2024

55 star rating

Easy to complete and far cheaper than quoted by the main dealer

Susan Smith 13 Mar 2023

55 star rating

Much cheaper than other quotes. Easy to do. I phoned to talk to an adviser as never needed this type of insurance before. No hold time and very helpful.

natasha badger 28 Oct 2023

55 star rating

Easy to use and half the cost the dealership wanted for a gap policy

D Flynn 17 Dec 2013

55 star rating

Easy

Atul Patel 17 Dec 2013

44 star rating

It offered the best price for the 5 year term. Many of your competitors only offer 4 years for the same fee.

nicola daly 23 Dec 2013

55 star rating

I found the website easy to use and wasnt asking too much information to get a quote. Also the price beats all others out there. WIll be recommending this to others

Pam Macmillan 17 Dec 2013

55 star rating

You clarified the terms and condition giving me the confidence to buy.

A Anderson 26 Aug 2017

55 star rating

Easy website to use, saved me £££'s on dealers prices ..very happy!

Louisa Horth 19 Jun 2021

55 star rating

Quick and easy to get a quote and set up insurance. Speedy service should you ever have to claim to on past experience!

FAQ

What is Contract Hire Gap Insurance?

In the event of your vehicle being written off in an accident or stolen, our Finance, Lease and Contract Hire Gap Insurance can offer priceless financial protection. It will pay the difference between the outstanding finance balance and the settlement you receive from your motor insurer.

Cover will include up to a maximum of £1,000 motor insurance excess.

How does Contract Hire & Lease Gap Insurance work?

Let’s say that at the point where your car is declared a total loss, you owe £20,000 on your finance agreement. However, due to depreciation and other factors, your car at that stage is only valued at £14,000, which is the settlement you receive from your motor insurance provider.

That leaves you with a hefty £6,000 shortfall on the finance agreement – an amount that you may not be able to come up with. But by taking out Finance Gap Insurance with Direct Gap you’ll have protected yourself, as your policy will ensure that we’ll cover that £6,000 deficit.

Why do I need Contract Hire or Lease Gap Insurance?

Because the value of your car at the time of being declared a total loss will be different to when you first bought it, your motor insurer will offer you a settlement in line with its current worth, rather than the value at the time of purchase.

Recent research shows that the average car depreciates by as much as 60% in its first three years which, if your car were to be written off, could leave you with a significant deficit to pay on a vehicle you can no longer drive.

That’s a situation that nobody would relish, which is why our Finance Gap Insurance is worth considering as a sensible option to mitigate any damaging costs if the worst were to happen to your car.

What happens if I don't have Contract Hire Gap Insurance and my vehicle is written off?

If misfortune were to strike and your car was declared a total loss, you could be left with a large amount outstanding on your finance agreement. That’s because a motor insurer’s settlement will be in line with the car’s value at the time of the incident, rather than its worth when you originally made the purchase.

If you come to us for your Finance Gap Insurance, we’ll cover that shortfall on your agreement. Without it, you’d have to make up that deficit out of your own pocket, leaving you to pay off a car that is no longer driveable.

Do I need Gap Insurance on a leased car?

Gap Insurance for lease hire is not a legal requirement in the same way that standard motor cover is. But it could prove a shrewd financial decision if your vehicle were to be declared a total loss.

If your car got stolen or was written off and you had not taken out a Gap Insurance policy, the leasing company would expect you to pay off the remainder of the lease. This could run into many thousands of pounds.

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What is total loss?

Only your insurer can declare the vehicle a total loss which in general can result from accidental damage, your fault or third party fault, fire, theft or vandalism.

Total loss means that you have claimed under your motor insurance, your claim has been agreed, your vehicle has been forfeited (title of the vehicle transferred to the motor insurer) and a payment made following the incident.

What happens when my car has been declared a total loss?

If your vehicle is written off and you have taken out Contract Hire, HP or PCP Gap Insurance, the next steps will be as follows:

  1. Your motor insurer will confirm your car is a total loss.
  2. A settlement figure is requested and subsequently received from the provider of your finance agreement.
  3. Direct Gap will then pay the difference between the motor insurer’s settlement and the total finance remaining on the vehicle, ensuring that you have nothing to pay.
  4. If you have chosen to purchase deposit protection as an add-on to your main Finance Gap Insurance policy, your deposit will be refunded up to a maximum value of £2,000.

 

 

 

Does Contract Hire Gap Insurance cover me if I’m at fault?

Yes, if your car is written off in an accident that was your fault, your Contract Hire Gap Insurance will still cover you. However, some exclusions apply. For example, if the driver is under the influence of alcohol or non-prescription drugs, the policy will not be valid. The same goes for any illegal activity, fraud or an act of wilful negligence. Please see your policy wording for a full list of the exclusions.

How do I make a claim on my policy?

You need to wait until your motor insurer has declared your vehicle a total loss before you can make a claim. Once they have done that, the process is perfectly straightforward:

  1. Call our claims line on 01422 756 100.
  2. Fill out the claims form.
  3. Your paperwork will be checked by a member of our expert in-house claims team.
  4. If all is approved, your money will be sent to you via bank transfer.

For more information, head over to our guide on how the claims process works.

Which is the best Gap Insurance for PCP?

If you’ve put down a sizeable deposit on your car, our Return to Invoice + Gap Insurance may be the preferred choice. It will cover the difference between your insurer’s payout and the purchase price of your vehicle. Whatever your situation, here at Direct Gap we’re committed to providing the solution that best suits your requirements.

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Are Contract Hire Vehicles covered by this policy?

Yes, our Finance Gap Insurance policies are extremely flexible and cover all types of agreements. Contract hire is specifically covered under this policy as it recognises you may not be the registered keeper of the vehicle, but the hirer.

How do I get a quote for Contract Hire Gap Insurance?

It couldn’t be simpler to get a Finance Gap Insurance quote. Just enter your vehicle’s cost and the desired length of policy, and we’ll provide you with an estimate in a matter of seconds. If you then select ‘Buy Now’, we’ll make it clear what your policy covers and what it doesn’t.

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Can I cancel my Contract Hire Gap Insurance?

Yes, if you wish to discontinue your policy then you can cancel. Usually, to be entitled to a refund you need to do this within 14 days of the cover’s start date. However, we offer you a grace period of 30 days. Beyond that period, you'll be refunded on a pro-rata basis, excluding any arrangement fees that may be applicable.

How long can I have owned the vehicle for and still buy the policy?

A Contract Hire, HP or PCP Gap Insurance policy can be purchased at any time.

Whose name should the policy be in?

The policy should always be in the name of the owner/hirer or registered keeper of the vehicle.

Does Contract Hire Gap Insurance cover my motor policy excess?

Yes, up to £1,000 in the event of a total loss claim.

Am I covered for theft of vehicle with keys?

Yes; you are covered when keys are stolen from your home or office which results in vehicle theft. However you must exercise due diligence and take appropriate steps to safeguard both the keys and the vehicle.

No insurer, including your motor insurer, will provide cover for wilful negligence. For example if you leave the keys in the vehicle and you go off to pay for fuel which results in the vehicle being stolen.

Why would this policy not pay out?

Please see your policy wording for a full listing. However, the main exclusions of Finance Gap Insurance are when the vehicle becomes a total loss as a result of:

  • The driver being under the influence of non-prescription drugs or alcohol
  • Being involved in illegal activity
  • Fraud or an act of wilful negligence e.g., leaving keys in the ignition whilst the vehicle is unattended.

What is the vehicle purchase price that I should use to calculate the cost of the policy?

The purchase price is the price of your Vehicle, as confirmed in the sales invoice which includes factory fitted accessories and dealer fitted options up to £1,500, paintwork protection systems up to £250.

You should exclude all deposit allowances, discounts, rebates, concessions, cashbacks, incentives and contributions. Also exclude new vehicle registration fees, road fund licence fee, number plates, warranty costs, insurance premiums, fuel and other extras, arrears or negative equity.

What is the claim limit on Finance Gap Insurance?

The Claim Limit is the "top up" difference between the vehicle value at the point of total loss and the amount required to settle the outstanding finance.

On vehicles costing up to £75,000, Return to Invoice policies also have an overall claim limit of the original purchase price of your vehicle. On vehicles costing over £75,000, a £75,000 claim limit is in place.

Is Deposit Protection available?

YES, we will insure your initial deposit up to £2,000. This is an optional add on.

Can anyone drive my vehicle and still be covered by Lease Gap Insurance?

Yes. Your Finance Gap Insurance will include all drivers provided that they are covered on your comprehensive motor insurance policy to drive the vehicle as a named driver.

Am I covered to drive my vehicle abroad?

You are covered not only in England, Wales, Northern Ireland, Scotland, Isle of Man and the Channel Islands but also in member countries of the European Community and any other country for which an International Motor Insurance Certificate (Green Card) is effective on your vehicle at the point of Total Loss up to 120 days in any one trip.

How can I pay for my Contract Hire Gap Insurance?

You can pay for your policy either in a one-off payment with the use of a credit/debit card without any charges or we can arrange for credit payments over 12 months. Please note that the payments are collected by a third-party agency and a small administration fee applies.

Why is Direct Gap so much cheaper than motor dealers quote?

We are an internet-based provider and as such we have lower overheads than motor dealers. As a result of the high volume of Gap Insurance that we sell annually, we can provide quality policies at the keenest prices.

You can be confident that our prices are lower than those quoted by dealers and many other websites. Paying less than you have been quoted elsewhere in no way means that you are buying an inferior product, it just means that they are making more profit from your purchase!

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When and how do I receive my policy documents?

Policy documents together with confirmation of payment are sent by email as soon as you make the payment.

 

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This page was last updated on 12th July 2021.

How old can my car be to buy Finance Gap Insurance?

Your vehicle must be a new Lease or Contract Hire vehicle.