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

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

janice Matthews 6 Nov 2014

5

Easy to follow and complete.

Nelly Brotzen 23 Dec 2013

5

Ease of use of website and clear explanation of products available.

Simba 27 Mar 2018

5

Over 50% cheaper than the main dealer 'return to invoice' quote...real value for money!

D Slaithwaite 17 Dec 2013

5

I have never purchased gap insurance before. On being offered it by me car dealer I decided to shop around and saved more then 50%.

Nichola Mortimer 18 Oct 2019

5

Very easy to follow, best quote on line.

Peter Hobden 19 Dec 2013

5

If I could give the overall experience 10 I would. This policy is way beyond anything you can get from a dealer. I had to phone to get a small change made to my policy, no hassle, details changed and new documents mailed to m…

Zoe Peet 31 Aug 2020

5

Quick and easy, price much better than dealer offer. Happy my car is all covered to be picked up tomorrow

Nick Bates 27 Mar 2015

4

Nice easy to use website (and the insurance was much cheaper than the supplying dealer offered!).

Mrs Carol Dury 14 Jan 2014

5

It was nice and straight forward to organise this policy

mrs s jupp 19 Feb 2016

5

simple, easy and a fantastic price, thank you :)

Martin G 18 Dec 2013

5

The company looks well set up and professional, FSA, reasonably competitive price.

Carl Nash 22 Jan 2020

5

So quick and easy would recamend them anyone

Lorna Mackay 22 Nov 2014

5

Quote given and Insurance arranged very quickly with no problem

Elizabeth Barnett 9 Jan 2020

5

very good service ,used direct gap many times .

Steven Hartley 5 Mar 2014

5

Very simple system, quick and easy to use.

B Fitzpatrick 17 Dec 2013

5

Saved 50% on quote from leasing company for the same cover.

Peter Radcliffe 19 Mar 2014

5

Whilst the application process was easy, you can only really be judged by how well you pay out in the event of a claim.

Mr A Chapman 18 May 2016

5

Very competitively priced, easy to purchase and always answered the phone when I had a question. 10/10 , highly recommended.

robert pearce 20 Dec 2013

5

A competitive price
A friendly and easy to understand web site
The security of FSA
The only site offering 5 years cover 

Helen James 24 Jan 2015

5

very easy to buy, helpful phone contact and decent price.

Graham Harrison 30 Jan 2020

5

As a new customer all I can comment on is why I chose to buy this cover amongst all the competition out there for this type of Insurance for people in my situation. Car Insurance Companies are ever increasingly going down the…

Michael McCausland 30 Jun 2014

5

Very easy process and a smooth transaction, just the way business should be. Many thanks.

sharon j 18 Dec 2013

5

Easy to use.

ALAN WILLIAMS 1 Jun 2017

5

Simple to arrange and a lot cheaper than the dealer offer. Many years ago I had my car stolen and was never recovered. I had only just bought it without gap insurance and I had a devil of a job to get it replaced. It took mon…

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FAQ's

What cover does Lease, Finance, & Contract Hire Gap provide?

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 settlement you receive from your motor insurer.

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

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

The Insurer is 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.

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.

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.

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

This policy can be purchased at any time.

How can I pay?

It can either be a single one off payment with the use of a credit/debit card without any card charges or alternatively 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.

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.

Why Finance, lease and contract hire gap insurance protection?

When it comes to getting a new car, finance, lease and contract hires are proving an increasingly popular option up and down the country. But what happens if your vehicle is declared a total loss, leaving you with a significant amount left to pay on your finance deal?

That’s where our contract hire gap insurance comes in. As just one of the types of cover we offer, our finance gap insurance is designed to protect you from suffering a significant shortfall in the event of your car being written off.

What is Finance, Lease and Contract Hire 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 was written off, could leave you with a significant deficit to pay on your finance agreement. That’s a situation that nobody would relish, which is why our Finance, Lease, Contract Hire, PCP gap insurance is worth considering as a sensible option to mitigate any damaging costs if the worst was to happen to your car.

How does Contract Hire 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.

Are Contract Hire Vehicles covered by this policy?

Yes, our finance and contract hire gap insurance policies are extremely flexible and cover all types of finance contracts.

Contract hire is specifically covered under this policy as it recognises you may not be the registered keeper of the vehicle, but the hirer.

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

If your vehicle is written off and you have taken out contract hire 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.

Do I need Gap Insurance on a Contract Hire or Lease vehicle?

It’s not a requirement to take out contract hire gap insurance but, as highlighted in the example above, it could prove a shrewd financial decision if your vehicle was to be declared a total loss.

If your car was written off and you had not taken out a Finance Gap insurance policy, you could be left with a significant amount outstanding on your agreement, which you would have to pay for out of your own pocket.

What happens if I don't have contract hire gap insurance and my vehicle is written off?

If misfortune was 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 gap insurance, you’d have to make up that deficit out of your own pocket, which could prove expensive.

Which Gap Insurance is best for PCP?

If you’ve bought your car via PCP, choosing between our range of products will depend on your specific 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, as it will cover the difference between the outstanding amount of finance remaining on your agreement and the value of the car at the point where it was declared a total loss.

Or, 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, as it will cover the difference between your insurer’s pay-out 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.

Does it 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 the policy terms and conditions for a full listing, however the main exclusions are:
The vehicle becoming a total loss whilst the driver is under the influence of non prescription drugs or under the influence of alcohol, involved in illegal activity, fraud or an act of wilful negligence, eg leaving keys in the ignition whilst the vehicle is unattended.

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 are able to provide quality policies at the keenest prices.

You can be confident that our prices are lower than those quoted by dealers and many other web sites.

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!

Can anyone drive my vehicle and still be covered by GAP?

Yes; 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.

Is this a one off or annual payment?

It can either be a single, one-off payment with the use of a credit/debit card without any card charges, or alternatively 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 are able to provide quality policies at the keenest prices.

You can be confident that our prices are lower than those quoted by dealers and many other web sites.

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!

Can anyone drive my vehicle and still be covered by GAP?

Yes; 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.

Is this a one off or annual payment?

It can either be a single, one-off payment with the use of a credit/debit card without any card charges, or alternatively 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.

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