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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.

For an additional premium you can now also protect the initial rental/deposit you paid at the start of your agreement, up to a maximum of £3,000. 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.

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 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.
  • 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




*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)


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.