GAP insurance

Gap insurance financially protects you in the event of a total loss car insurance claim. We’ve partnered with independently rated five-star provider – Direct Gap – to make it easy for you to get a car gap insurance quote for peace of mind when driving your new lease car.

Get a quote

Compare GAP insurance prices with our partner Direct Gap.

Why Leasing.com recommends Direct Gap:

  • Fast online personal quotations with gap insurance prices from £69.
  • Claims settled within 10 days by a professional team of trained experts.
  • Independently rated five-star insurance provider.
  • Established in 2009 and authorised and regulated by the FCA.
  • 4.9/5 on independent review platform, feefo.
GAP insurance FAQs

What is Gap insurance?

Cars depreciate in value, particularly brand-new cars. If your car is written off or stolen, your car insurance provider will pay out what it’s worth at the time not what you paid for it – whether that’s the total list price or the P11D price, as the total price is often known in car leasing. This means there is usually a ‘gap’ between your insurance pay out and the amount you need to buy the car again or repay your outstanding lease agreement. Gap (Guaranteed Asset Protection) insurance covers this shortfall and financially protects you. As well as car gap insurance, you can also buy van gap insurance from our partner, Direct Gap. Their van gap insurance policies are available for local businesses, but not high-mileage drivers such as couriers.

Should I get Lease Gap insurance?

It’s not a legal requirement, but it can give you peace of mind if the worst happens. 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. Our partner, Direct Gap, make gap insurance comparison easy.

How much does Gap insurance cost?

The price of your gap insurance premium is totally dependent on the vehicle that you are insuring, it’s value and the length of your lease agreement. Through our partner, Direct Gap, you can buy gap insurance from as little as £69 but most policies are typically between £100-300 for multi-year policies. Our partner Direct Gap, who are FCA authorised and regulated, offer cheap gap insurance quotes paired with first-class customer service. They even offer Initial Rental Protection insurance, which will cover the cost of the upfront rentals you pay to get into your new leased car in the event of a total loss insurance claim.

What does Gap insurance cover?

If you’re involved in a total loss insurance claim, gap insurance covers the difference between what your insurer gives you for the current value of your vehicle and the remaining amount you owe on your lease agreement (which can be a higher amount). Like all insurance products, there are some exclusions that you should be aware of. First of all, you must make sure that you have fully comprehensive motor insurance in place before purchasing gap insurance and your vehicle must have been declared a total loss by your insurer before you will be eligible to make a claim on your gap insurance policy.

Gap car insurance will not cover personal injury or death, the cost of repairs to your vehicle, repossession of your car for failing to make your lease payments, courtesy car costs or damage to property from any accident. Gap insurance policies will also not pay out if you’ve been found to be driving under the influence of alcohol or non-prescription drugs, are found to have been negligent during a theft or accident and are using your vehicle as a taxi, haulier or courier.

Leasing.com Group Ltd is an Introducer Appointed Representative of Motor Gap Ltd, trading as Direct Gap, who are authorised and regulated by the Financial Conduct Authority (FCA No 516846) for insurance distribution activities.