DBK @ GAPinsurance.co.uk

GAPinsurance.co.uk
Forum Sponsor
Sep 9, 2019
14
10
Holmfirth
www.gapinsurance.co.uk
The website won't allow for the input of a discount code for Contract Hire GAP insurance (only Invoice or Replacement GAP insurance).

PM me your email address that you used when generating the quote on our site... I'll email you a revised quote with discount incorporated.
 

Peller

2018 Cupra 290 without the copper bits
Mar 29, 2016
492
146
Edinburgh
Heads up for folks needing the cover. I have a 2 year policy via ALA which I understand that have changed to another company but all is intact. I have paid £110 for 2 years full cover on my 2018 Cupra.

Seat were asking £279!

Sent from my Moto G (4) using Tapatalk
 

DBK @ GAPinsurance.co.uk

GAPinsurance.co.uk
Forum Sponsor
Sep 9, 2019
14
10
Holmfirth
www.gapinsurance.co.uk
Heads up for folks needing the cover. I have a 2 year policy via ALA which I understand that have changed to another company but all is intact. I have paid £110 for 2 years full cover on my 2018 Cupra.

Seat were asking £279!

Sent from my Moto G (4) using Tapatalk
ALA are a competitor of ours... was that Contract Hire GAP insurance you got from them?
 

Jimbobcook

Blue... Oh go on then
Staff member
Moderator
Nov 24, 2012
5,600
2,096
Just signed up for GAP insurance with yourselves, very easy to do and the cheapest quote I could find using the 10% off.

Happy customer.
 
  • Like
Reactions: Syphon

DBK @ GAPinsurance.co.uk

GAPinsurance.co.uk
Forum Sponsor
Sep 9, 2019
14
10
Holmfirth
www.gapinsurance.co.uk
Hi DBK,

Can you explain a little about GAP insurance for contract lease please?

I’ve got a quote that I’m happy but I’ve never purchased GAP insurance before.
Luke - I'm really sorry. I don't recall being notified of this post of yours and I've just stumbled across it.

It might well be that you've had your query answered elsewhere by now but just in case you haven't or, for the benefit of anyone else reading this thread now or in the future... here goes.... for the avoidance of doubt, by "lease", I'm referring to a Contract Hire Agreement under which there's no contractual option for you to purchase the vehicle at the end of the term, it's basically a long term rental/hire of the vehicle after which the vehicle has to be returned to the finance company.

If your leased vehicle is written off (through accident, fire, theft or flood) your motor insurance company will pay (to the finance company) what they (the motor insurer) believe to be the value of the vehicle at the time of loss.

Separately the finance company will declare their "Early Termination Fee" (aka "Settlement Figure"). This early termination fee would normally be a combination of the amount that the finance company believed their/your vehicle to have been worth at the time of loss *plus* something towards the combined balance of the monthly rentals that would have been due until the end of the finance term.

Quite how much of those remaining rentals it incorporates differs from one company to another. I've had a total of three leased vehicles written off (one in an accident that I caused in 2014 and the other two which were stolen when my house was burgled earlier this year)... In 2014 the finance company took my motor insurance payout as full settlement and allowed me to walk away from the balance of the remaining rentals. In January of this year and my two cars that were stolen, one finance company wanted half of the combined balance of the monthly remaining rentals, whilst the other finance company wanted pretty much every single penny of the combined balance of the monthly remaining rentals save for a meagre 4% discount.

In simple terms though...

1. Motor insurer pays out their perception of the value of the vehicle
2. Finance company declare the settlement figure they require
3. Contract Hire GAP insurance steps in aiming (subject to some possible exclusions*) to pay any shortfall between the above AND, if you built in cover for it at the time you bought the GAP insurance policy) also reimburse you up to £3k of any initial rental that you paid at the start of your lease so that you have at least some money to start again with.

* - possible exclusions would be things like, fees within the settlement figure for things such as excess mileage, maintenance or arrears. Along with any amount deducted from the motor insurer's payout for anything more than £250 of excess (we cover the first £250 of any excess deducted by the motor insurer)

I hope this makes sense... you can read more about Contract Hire GAP insurance here: www.GAPinsurance.co.uk

My apologies once again for the delay.
 
Adrian Flux insurance services - discount for forum members.