Contract Hire Plus GAP Insurance

What is Contract Hire Plus GAP Insurance?


Contract Hire GAP Insurance will, in the event of a total loss claim (accident, theft, fire or flood damage), cover up to 100% of the outstanding rental payments for the vehicle and cover any shortfall in the market value settlement provided by the insurer.

For an additional premium you can now also protect the initial rental/deposit you paid at the start of your agreement – this is usually equivalent to 3, 6 or 9 of your subsequent monthly rental payments. This means that if your vehicle is declared a total loss, as well as clearing your outstanding payments with the finance company you receive an additional settlement for the upfront payment.

There are three levels of cover to choose from: £1,000, £2,000 or £3,000. The amount you select should be enough to cover the full amount you paid as an initial rental.

Mind the GAP! Avoid a potential shortfall...

On the road price: £
Anticipated length of ownership (years):

ALA GAP Insurance is recommended and awarded by

Do I need Contract Hire Plus?

The answer to this is yes, if you want to:

  • Cover your liability under the contract hire agreement if your vehicle is a total loss
  • Be able to get a new vehicle on a new agreement with no debt from the previous agreement
  • Receive back your deposit/initial rental (if you select Initial Rental cover)

Can I buy Contract Hire Plus?

  • I have a lease or contract hire agreement, with no option to buy at the end of the agreement
  • My vehicle is new, or used up to 10 years of age
  • My vehicle was collected within the last 365 days
  • My vehicle is not excluded

    Ferrari, Lamborghini, Maserati, Rolls Royce. Any Commercial Vehicle over 3500kg, Motorcycle, Motor Scooter or Moped. Any left hand drive vehicle and a vehicle which does not meet UK or EC approval or is not commercially available in the UK direct from a manufacturer or its authorised importer or dealer. Any taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle or any rally, competition or off-road vehicle of any type.

Contract Hire Plus GAP Insurance Features:

  • Available up to 5 years for vehicles on lease or contract hire
  • We are fully authorised and regulated by the Financial Conduct Authority (FCA) and your policy is covered by the Financial Services Compensation Scheme
  • Pays as standard up to £250 of your Comprehensive Insurance excess
  • Our policies do not have a ‘Market Value Clause’
  • Our policies do not a have a ‘Glass Guide maximum retail value clause’
  • Any amendment made FREE of charge
  • If you select Initial Rental Cover the policy will also ensure you recover your initial rental payment, up to a maximum of £3,000
  • Policy transfer – pro rata transfer of unused premium if you change your vehicle, with no admin fees
  • Discount available for renewal and additional policies
  • We guarantee to match any comparable online GAP quote
  • This policy will pay up to 100% of outstanding rentals and any shortfall in the vehicle value - *see illustration below

Contract Hire Plus Example

Contract Hire Plus Example

*Example shows the amount covered by your Comprehensive Vehicle Insurance (based on average depreciation rates and current market value) and the potential shortfall if your vehicle is written off.

Your vehicle value: £20,000
The amount owed to the contact hire finance company to end the finance agreement: £18,000
Your comprehensive market value insurance payout: £10,000
Our Contract Hire Plus payout: £8,000
Comprehensive Insurance payout + ALA GAP Insurance payout = £18,000
(Leaving you clear of any owed finance on your vehicle)

Contract Hire Plus FAQ

For "Cost of vehicle" you should enter the estimated list price of the vehicle and select the term of cover you wish to take.

The system will automatically suggest a claim limit but this can be tailored further to suit your needs, based on the total amount you will be paying over the term of the contract.

If you would like any assistance with a quote please contact our team on 01653 916304

This depends on the supplier but you really need to double check the small print. Our Contract Hire Plus GAP specifically covers up to 100% of outstanding rentals and any potential shortfall in residual value.

Based on average figures you could assume that a 2-year-old vehicle would be worth about 65% of its original value, a 3-year-old vehicle 45% - 50% and for 4 years you could assume 35%-45%.

When getting a quote our system suggests a "GAP Claim Limit" on this basis.

If the vehicle is on a lease or contract hire agreement, it is worth checking with the leasing company their policy on charges if the contract is terminated due to a total loss. Many leasing companies charge 50%-60% of outstanding rentals whilst some will charge you 100% of outstanding rentals.

With Initial Rental Cover we offer a choice of claim limit - either £1,000, £2,000 or £3,000 – and we would suggest taking the one which would cover your full deposit.

In this scenario we would suggest a £2,000 claim limit to be the most suitable. This means that, in the event of a total loss, you would receive back the full £1,700 initial rental paid at the start of the agreement.