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Contract Hire Plus GAP Insurance

GAP insurance suitable for leased vehicles

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What is 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.

We are pleased to offer policies underwritten by AmTrust, Hiscox and Financial & Legal, three highly rated underwriters. There are differences in what is covered and included in each; for example, with the Financial & Legal policy, an additional premium can be paid to protect the initial rental/deposit you paid at the start of your agreement, up to a maximum of £3,000. With our Hiscox policy, this rental/deposit protection is included and reflected in the price. With AmTrust, £500 is included and you have the option of increasing it by a further £3000 (total of £3500) for an additional cost.

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. Please contact us via email, LiveChat, or phone if you’d like to discuss this further; we’d be happy to help.

 


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 has cover under the Financial Services Compensation Scheme

Pays up to £250 or £500 of your comprehensive insurance excess if your vehicle is a total loss (depending on policy type, underwriter and confirmed at the time of purchase).

Initial Rental Cover – With AmTrust, £500 is included, and you can increase cover to a maximum of £3500 for an additional cost. Hiscox includes £3000 cover in the price. With Financial & Legal, this benefit costs extra.

Pays up to £300 a year for non-total loss claims (Hiscox-underwritten policies only).

Contributes up to £40 per day for car hire if you are without your written-off vehicle, for up to 30 days (Hiscox-underwritten policies only).

Cover available for up to 365 days after delivery of vehicle

Any amendment made FREE of charge

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 price match any comparable online GAP quote – just give us a call if you’d like to discuss this

This policy will pay up to 100% of outstanding rentals and any shortfall in the vehicle value – *see illustration below

Do I need Contract Hire Plus?

Can I buy Contract Hire Plus?

Do I need Contract Hire Plus?

The answer to this is yes if:

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?

The answer to this is yes if:

You have a lease or contract hire agreement, with no option to buy at the end of the agreement

Your vehicle was collected in the last 365 days

Your vehicle is not excluded as follows: 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

Exclusion list:

  • 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 multi-drop courier or any rally, competition or off-road vehicle of any type.
  • Emergency service vehicles.
  • Vehicles designed to carry more than eight people including the driver.
  • Vehicles fitted with non-manufacturer specified modifications including, but not limited to, engine modifications, uprated brakes, roll cages and/or steering column extension.
  • Vehicles which are classified as non-passenger cars, motor caravans, caravans, kit cars or replica cars.
  • Any imported vehicle, unless it was:
    • manufactured as a right hand drive
    • purchased from an authorised distributor in the other country (and not imported directly)
  • Vehicles without a valid Road Fund License (vehicle tax).
  • Vehicles not included in Glass’s Guide.
  • The vehicle has not previously been declared a total loss or write off.

Contract Hire Plus Example

Covered

£10,000

Shortfall

£8,000
*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.
Finance details:
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)
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FAQs

I have a contract hire vehicle and would like a quote. What figures should I use for the Contract Hire Plus policy?

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

Is Finance GAP the same as Contract Hire GAP?

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.

How much cover do I need?

To provide you with a quotation we ask for the value of your car and the amount you will be paying per month to the finance company. This allows us to calculate the maximum amount of cover you might need in the event of a total loss claim.

We base the suggested claim limit on the possibility that your finance company can ask for up to 100% of any outstanding rental payments in the event of a total loss. This can be in addition to the market value settlement they will be receive from your insurer.

This policy would not cover any costs relating to administration charges, maintenance charges, relief vehicle, early settlement charges and road fund license, but these may still be charged by your finance company.

Policy Documents

View Policy Wording and IPID for Contract Hire Plus GAP Insurance

Policy wording (Bought within the last 180 days) via AmTrust IPID (Bought within the last 180 days) via AmTrust Policy wording (Bought within the last 180 days) via Financial and Legal IPID (Bought within the last 180 days) via Financial and Legal Policy wording (Bought within the last 365 days) via Financial and Legal IPID (Bought within the last 365 days) via Financial and Legal Policy wording via Hiscox IPID via Hiscox

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