Finance / Lease / Contract Hire Gap Insurance

In the event of your vehicle being declared a total loss, our Finance, Lease and Contract Hire Gap Insurance will pay the difference between the outstanding finance balance and the motor insurer’s settlement.

Cover will include up to a maximum of £250 motor insurance excess.

  • Pays finance and settlement charges
  • Covers contract hire, HP, PCP 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 £50k
  • Covers insurance excess up to £250
  • Covers all drivers on your insurance policy

Why choose Direct Gap for your Finance 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. We deal with all claims in-house, so rest assured you’ll never be put through to a call centre.

•  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 PCP, Hire Purchase or 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.

Example

  • Finance Owing:

    £20,000

  • Motor insurance pays:

    £14,000

  • Gap pays:

    £6,000

You have a shortfall of £6,000 which is paid by the Gap Insurance.

This sum can include interest charges, early settlement fees and would include all contract hire payments if the vehicle is hired.

 

See what our customers are saying about us

Alexander Dobbie 12 Jul 2018

5

Good service, easy to use and just the policy I want.

Cristina 1 Feb 2019

5

Great price and good to know they are 5* defacto rated also. Half the cost of what the dealership was wanting and a better cover.

Clive Barwell 10 Nov 2020

5

Quick and easy. A saving of over 40% on the Dealer's quotation.

Paul Schofield 1 Aug 2015

5

I am really impressed with the GAP Insurance that you provide,it is really good value for money and the cover is far superior to the cover that was on offer from the dealer.

Dave 3 Oct 2015

5

Very easy to use service. many thanks

C Benson 17 Dec 2013

5

The 10% discount as an existing customer was a nice touch

Ian 1 May 2021

5

Easy and very straight forward. Its the same underwriters as the policy from my car dealer were offering.

J Wills 28 Feb 2019

5

Great customer service and great price

Angela Ransom 10 Apr 2015

5

Easy, clear and concise website. Spoke to James by telephone regarding registration change in the near future and he was extremely helpful and friendly. Excellent service which is a rarity these days. Would definitely recomme…

Colin Bentham 25 Oct 2014

5

Easy to follow website. Reassured by previous testimonials.

Antony martinez 17 Jul 2014

5

Easy to use website and fair price for gap insurance

Sylvanus w jones 28 Oct 2015

5

Nearly 50%cheaper than garage quote So easy to obtain

Chris Hovery 17 Dec 2013

5

Very good value and I was given all the information I needed with no pressure to buy. 

Kerry Hartnell 23 Oct 2017

5

I took a policy out with car dealership with my last car paying £500 for 4 yrs. So when we bought this new car for just under £15k we decided to see if we could get Gap insurance directly and cut out the middle man,…

John Herd 20 Feb 2020

5

Second time we have used Direct Gap, fast speedy service & saves a fortune

Alasdair Clark 30 Jun 2014

5

Good price and helpful staff

Adam Roofe 18 Jun 2021

5

excellent website really easy to follow and very quick to obtain quote and purchase

Malcolm Harding 22 Mar 2021

5

Quick and easy to understand, with all documents downloadable. All at a reasonable cost.

Liam T 19 Mar 2019

5

Phoned the office for a bit of assistance with the online application and they sorted the information out for me instantly. Brilliant service so far, Thank you.

Steve Haywood 18 Dec 2013

5

Very clear wording, much cheaper than the insurers / dealers.

C Daniels 24 Feb 2016

5

Just saved me over £100 against dealer product - Thank you.

G Charlesworth 5 Oct 2015

5

Rating only for the buying process. Unable to give rating until after a claim for any insurance type/company. Hopefully I will never have to rate the claims process.

mark sinclair 28 Feb 2017

5

very quick, hassle free, fantastic, 5 stars all round.

Peter Brown 23 Dec 2013

5

Ease of access and simplicity of paperwork

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FAQ's

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 £250 motor insurance excess.

How does Contract Hire, HP and PCP 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 PCP 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.

Get a quote.

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.

Get a quote.

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 bought your car via Personal Contract Purchase (PCP), choosing between our policies will depend on your circumstances – there is not necessarily one solution that will suit all.

For example, our Finance/Contract Hire Gap Insurance may be most appropriate if you have put down a minimal deposit. It will cover the difference between the outstanding finance balance and the value of the car at the point where it was declared a total loss.

Our Vehicle Replacement + Gap Insurance will pay the difference between your motor insurer’s settlement and the cost of a replacement car, matching the original specifications of the vehicle.

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.

Get a quote.

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.

Get a quote.

Can I cancel my Contract Hire/PCP 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 charged £35 as a cancellation fee and then refunded on a pro-rata basis.

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 £250 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.

Who is the insurer of this policy?

The insurer of our Finance Gap Insurance policies is Acasta European Insurance Company Limited, (registered no. 96218), which is authorised and regulated by the Gibraltar Financial Services Commission. The insurer is subject to regulation by the Financial Conduct Authority and Prudential Regulation Authority for the conduct of UK business.

The insurer is also covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if the insurer cannot complete their obligations. This depends on the type of business and the circumstances of the claim. For claims against insurers, 90% of the claim is covered with no upper limit.

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.

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, HP or PCP 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!

Get a quote.

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.