DBK @ GAPinsurance.co.uk

GAPinsurance.co.uk
Forum Sponsor
Sep 9, 2019
17
15
Holmfirth
www.gapinsurance.co.uk
If your leased vehicle is written off (accident, fire, theft, or flood), your motor insurance policy will usually only pay out the market value of the vehicle at the time it was written off.

Separately the finance company behind your lease agreement will calculate your settlement figure (aka their "Early Termination Fee"). Assuming no charges for excess mileage and/or arrears, in most cases this is a combination of:
  • The amount they consider to be the value of the vehicle at the time of loss, plus
  • The sum of some or all of the rentals due until the end of the lease agreement, plus
  • A fee for wrapping the agreement up, less
  • A discount for early settlement - usually in the region of about 4% per-year.
There's some variation to the above between different finance companies but, the basic premise of Contract Hire GAP insurance is that if your motor insurance payout falls short of clearing the settlement figure of the lease, Contract Hire GAP insurance aims to pay the difference between your motor insurance payout and the finance company settlement figure.

In addition, when purchasing cover, you can also add-on Initial Rental Cover which will see the policy aim to pay the difference between your motor insurance payout and the finance company settlement figure AND reimburse you up to £3,000 of the initial rental you paid when you first started the lease agreement.

Get a quote for Contract Hire GAP insurance at www.GAPinsurance.co.uk today.

If you have any questions, contact us by telephone on 01484 490095, by email to [email protected], by PM on this forum or feel free to comment below.
 
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