Lease GAP Insurance covers you against financial loss in the unfortunate event of a total loss insurance claim. Our recommended GAP Insurance partner MotorEasy, offer a 5-star Defaqto rated GAP policy designed specifically for vehicle lease and contract hire agreements.
Get a GAP Insurance quote in seconds.
*Voted the UK’s Best Buy GAP Insurance by Auto Express in their most recent 2023 survey of providers
If your vehicle is declared a write-off due to an accident, theft, fire or flood, Lease GAP Insurance pays the shortfall between the vehicle’s market value and the remaining balance on its lease agreement. In the event of a total loss claim, a motor insurer will payout the current value of the vehicle at the time of the incident.
As most new cars depreciate between 15% and 35% in their first year and as much as 60% by year-three, a “market value” insurance payout can often be less than expected. Very often, it won’t be enough to cover the balance on the lease. GAP Insurance therefore provides an optional insurance policy designed to cover the impact of depreciation, ensuring the owner can settle their lease agreement and be in a stronger position to finance a replacement car. GAP stands for Guaranteed Asset Protection (GAP) Insurance.
Unlike motor insurance, Lease GAP Insurance is not compulsory, but it can give you peace of mind if the worst should happen. Lease GAP Insurance (also known as Contract Hire GAP Insurance) is specifically designed for people whose car is on a lease or contract hire agreement, with no option to own it. The current market value of your car will be covered by your motor insurance policy and the GAP cover will pay any remaining payments owed for the remainder of your lease agreement.
Your Lease GAP Insurance premium will vary depending on the value of the vehicle and the length of your lease agreement. Most policies are typically priced between £100-300 for multi-year cover.
A vehicle write-off is stressful enough. Having to pay-off money still owed on a car you can no longer drive adds insult to injury. With Lease GAP Insurance you’ll have the peace of mind that, should the worst happen, you’ll receive an additional pay-out to fund a replacement vehicle.
