What is Contract Hire GAP Insurance?
"Hi, my name is Simon England, MD of ALA Insurance brokers.
"This video is going to talk about Contact Hire gap insurance.
Now contract hire is a different method of finance in that you never own the car, you are effectively just leasing it, you don’t own it. In the event of a total loss claim, firstly you need to find out from your finance provider exactly what your exposure is in the event of a total loss claim.
Typically from our experience, leasing companies will charge you anywhere from 50-100% of the outstanding rentals. Now that is irrespective of how much your insurance company pay the leasing company for the car, so you can imagine, once you’ve calculated how many rentals you’re going to be paying, how expensive that could be – now contract hire gap insurance is specifically designed to make sure you don’t get that bill."