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GAP Insurance

GAP insurance explained
GAP Insurance

How it works

If your car is written off (that being accident, fire, theft or flood), your motor insurer will pay out the market value of the vehicle at the time of the claim. Sometimes, this is not enough to cover the settlement figure on your lease agreement.

Being a leased vehicle, should it be declared a total loss, you (the lessee) will be responsible for settling the agreement, should the market value your insurer pays out, not be enough. GAP Insurance is there to cover this cost. On top of that, you’ll also be reimbursed for £250.00 of your excess. You can also protect up to £2,500 of your initial rental, which you can put towards a new lease vehicle.


Example: Let’s say you lease a Volkswagen Polo, worth £12,000, and you take it over a 2-year agreement. 18 months in, your car is written off. Your main insurer pays out the fair market value for the vehicle, which for this example is £8,000, but your finance company send you a settlement of £10,000.

This means you have no initial rental and now owe the finance company £2,000. GAP insurance will cover any difference between the market value your insurer pays out and the settlement figure. It will also, if you decided to include it, cover you for up to £2,500 of your initial rental, which goes towards your next initial rental on a new lease car.


Benefits of GAP

  • Covers 100% of outstanding rentals
  • No shortfall left for you to pay
  • Covers £250 of your excess
  • Optional protection for your initial rental, up to £2,500
  • 30-day money back guarantee
  • Option to pay monthly Cover from 2 to 5 years
  • Covers all factory fitted options

Considerations of GAP

  • It does not cover any non-standard extras
  • Some brands of vehicle are excluded
  • Your excess over £250 will not be covered
  • Deductions made by your main insurer will not be covered (if you still owe them money for the policy, this may be deducted from their pay-out)

How much does GAP cost?

Our GAP policies start from as little as £199.99, or just £239.99 in you want to protect your initial rental. In fact, over 95% of our policies have sold for exactly that, which can be paid in full by card of BACs payment.

The price comes down to the value of your vehicle and how long you are leasing it for, so let your account manager know if you want a quotation!


Can I take out GAP if I have already taken delivery?

Yes, but you must do it within 90 days of your delivery.

Do I need GAP insurance?

This really depends on two things; the terms of your finance agreement and what's included in your main insurance policy. The best thing to do is talk to your account manager and insurer.

Do I need to have GAP insurance?

Although recommended, it is completely optional. We recommend speaking to one of our friendly team, who can run through all of your options and help you come to an informed decision.

Do you cover names drivers?

Yes, as long as they are insured by your main motor insurer to drive the vehicle.

Can I still put a private registration on my vehicle?

Yes, that is no problem at all. If you do this after taking the vehicle, you must let us know as soon as possible.

Is there an excess payable?

No, there is no excess payable on a GAP policy. In fact, it reimburses you £250 of your excess, should you need to pay it.

Is there a claim limit?

All policies are different and that will need to be a question you ask the sales advisor dealing with your policy. Or you can call us to ask, on 01223 661800.

Can I transfer my policy to an​other vehicle?

Yes, you can. Just speak to your account manager and this can be arranged.

If you want to discuss leasing and how it might benefit you, please don't hesitate by getting in contact, or completing a callback form: