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What is Contract hire gap insurance and why should you protect yourself ?

 

So you have a bright shiny new car and like the many thousands of consumers these days, you have decided to buy it via a form of contract hire.

 

After all if the car is not yours and can never be yours why do you need to think about protecting yourself with contract hire gap insurance?

 

In the event of your contract hire vehicle being written off, your own motor insurance will pay out to the current market value at the time it was declared a total loss.

So what happens then?

 

What happens if there is a difference in the market value between what your insurance company think that the car is worth and what your lease company thought that it would be worth?

 

What happens to your outstanding rentals?

 

This is exactly where your gap cover can help, it will pay the difference between your motor insurance companies market value settlement and whatever is outstanding on your contract hire agreement. 

 

We know that some contact hire companies and even some competitors for that matter make this level of gap insurance difficult. A major issue is that each lease company will call the gap in the middle something different.

  • Back rentals
  • Forward rentals
  • Early termination
  • Differences in market value.

From your perspective it makes no difference what ever your own insurance call this chunk in the middle, this gap as long as you are up to date with your contract hire payments and there are no late payment charges you can simply walk away with no further financial liability.

 

We will even pay up to £250 towards your own motor insurance companies excess. 

 

If you do have any late payment charges or arrears these will be deducted from any settlement.

 

If you have put in a large advanced rental they you may want to consider protecting this with deposit protection. 

 

This means that as well as walking away from your old vehicle with no further financial obligation you would then be reimbursed your inital renal as shown on your invoice up to the maximum of £3000.

 

With Easy Gap insurance for a fraction of the cost of a main dealership or even some competitors quotes why not click for an automated quote.

 

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