Finance & Contract Hire Gap Insurance

A simple, low cost way to protect your debt.

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We have 1000's of happy customers, why should you use us? Here are just a few reasons.

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What this will do for you.

“ In the event of an insurance write off as a result of an accident, fire or theft – our Finance and Contract Hire Gap Insurance will pay the difference between your motor insurers write off settlement – and what your lender or leasing company require to end your finance or lease agreement.“

"Having woke this morning and checked the bank account it is a huge relief to confirm we are in funds to the tune of £26,441.69. I cannot thank you all enough for this back to invoice GAP payment......I can confirm that your policy has indeed lived up to the claimed benefit `back to invoice’ and for that - I thank you"

Mr A Preen, February 2019

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Why?

Features

Can I buy it?

What will Finance & Contract Hire Gap Insurance do for you?

When a write off occurs, a motor insurer will only pay the market value at the time of write off. So for example, in year three of ownership an insurer might pay 30 – 35% of the original vehicle purchase price, which in some cases may not be enough to repay what is owed the lender or leasing company.

Finance & Contract Hire Gap Insurance will pay the difference between the motor insurers write off settlement and what is needed to repay the lender or leasing company to end the agreement. This protection provides motorists with an opportunity to protect against the potential for financial shortfall. Finance & Contract Hire Gap Insurance is available to motorists who have a dealer, broker or leasing company arranged Hire Purchase, Lease Purchase, PCP, Lease and Contract Hire plan. Our Finance and Contract Hire Gap Insurance can also cover your advance rentals for a small premium supplement.

Example: A simple example of how Finance & Contract Hire Gap Insurance works

  • A customer buys a car for £15,000.00 and finances it over a 5 year period.
     

  • After two years of ownership, the car is stolen and written off by the insurer.
     

  • The insurer agrees to pay the market value at time of write off which is £7,500.00
     

  • The lender (finance or leasing company) provide a settlement figure of £9,750.00 which they require to end the agreement.
     

  • In this example, the customer would need to pay £2,250.00 just to clear his finance agreement.

Finance & Contract Hire Gap Insurance would pay that shortfall directly to the lender on behalf of the policyholder.

As the name suggests – it is suitable for Contract Hire users too.

If you are operating your vehicle under a Contract Hire agreement, we encourage you to read the terms and conditions of your agreement to understand what is required of you in the event of a write-off. In most cases, the terms and conditions of a Contract Hire agreement require you to a) provide fully comprehensive insurance for the period of the arrangement and b) pay all outstanding rentals due, plus vat, from the date of the write-off. For example, if you are contracted to pay monthly rentals of £420 including vat per month on a 3-year agreement, you may be required to pay the Contract Hire company £7,560.00 if your car is written off after 18 months of use. Your insurer will pay the Contract Hire company the market value at the time of loss – and you may be required to pay the outstanding rentals and potentially other costs to end the agreement. Some Contract Hire companies will reduce the outstanding rentals to some degree – but you can still be left with a substantial bill. Always check what is required of you within your particular agreement and consider the potential financial impact.

The statistics do not lie

According to the Association of British Insurers, over 500,000 vehicles are written off every year. To put this into perspective, that means 57 vehicles per hour, every hour, every day and night are written off. Whilst those numbers include road traffic accidents, professional theft forms a significant part of those statistics. While vehicle security systems have improved to the point that theft by ‘joy riders’ is now a very rare occurrence, there is an extremely lucrative market for the professional thief who will find a way to overcome the very best security systems – even if it means first stealing the keys. A vehicle is often our second highest investment and it’s portability and value even in dismantled component part form make it a very attractive and easy target. The statistics do not lie, 57 vehicles per hour every hour night and day – 365 days per year.

It is extremely low cost by comparison.

Is it good value? Consider these comparisons and examples. The cost of budget-priced mobile phone insurance for an iPhone or smartphone is approximately £8 per month which means over a three year period we might pay £288.00 to protect a £500 risk. By comparison and as an example, Finance & Contract Hire Gap Insurance, on the other hand, can cover up to £10,000.00 of risk on a £25,000.00 car for as little as £94 for a full three year period.

So, do you need it and is it a worthwhile investment and good value? That is for you to decide, but you must agree based on the ABI’s write off statistics – there are compelling reasons to give it serious consideration.

It might be hard to find any other Finance Gap Insurance with these features.

  • Optional advance rentals cover – protect your initial advance rentals (3, 6 and 9 months advance rentals) for a small additional supplement (please call for further details),

  • Our policies do not have a ‘Market Value’ clause – our policies pay from to your motor insurers settlement,

  • Our policies cover unlimited factory fitted options and dealer fitted accessories including paint upholstery treatment, insurance premiums, non-transferable warranties, and even road fund licence costs. These are often excluded by our competitor's policies,

  • Cover includes theft where the thief first gains access to the vehicle keys – a common form of theft today,

  • Our policies will settle outstanding finance or lease rentals even if the value exceeds the original purchase price of the vehicle,

  • Up to £250 will be paid toward your motor insurers excess deduction in a write off settlement,

  • Our policies cover all drivers named on your motor insurance policy – including provisional licence holders,

  • Modified vehicles covered providing your motor insurer has approved and insured the modification,

  • Written commitment with the terms to settle your claim within 10 days of your motor insurers settlement,

  • Cover available for new and used cars, light vans, and motorcycles up to 10 years of age and 100,000 miles at the start of the policy,

  • 1 – 5 year cover available on most Gap Insurance products,

  • No claim limit.

Your ‘Peace Of Mind’ Features

  • Our policies and added benefits are usually better than anything else on the market!,

  • Our insurer does not reserve the right to cancel your policy during the term of the policy – beware of those that do,

  • All policies covered by the Financial Services Compensation Scheme (FSCS),

  • Major ‘A’ rated insurer with London branch and UK claims team,

  • We are in our 13th year of trading online and are a directly FSA/FCA regulated specialist Gap Insurance broker, trusted by thousands of customers every year since 2007,

  • We are probably the most experienced and knowledgeable Gap Insurance people in the market – 12 years on-line and 30 years within motor dealerships,

  • Independently rated 5 Star cover,

  • Featured in Which? magazine.

Customer Friendly Features

  • Free policy amendments, no charge for address or registration number changes,

  • Our Finance Gap Insurance can be purchased within 180 days of the delivery/purchase date,

  • Our policies are cancellable with a pro-rata refund of unused premium less a £20 cancellation fee charged by the insurer,

  • Change your vehicle during your period of cover and receive a credit of unused premium to use toward the purchase of a new policy from us for your next vehicle – without a cancellation fee,

  • FREE transfer to next of kin upon death.

The above list represents some of the key benefit features, please refer to the full policy Terms and Conditions for greater detail. Always read the policy terms & Conditions before buying anywhere! In the event of a claim, the cost of fuel is not covered. Please refer to policy terms and conditions for more detail. Negative equity carried across from a previous vehicle and finance agreement (in part exchange) can be also be covered for a small additional premium – Please call 01438 870615 for further details.

* These features apply to policies purchased on or after 1st October 2018, for terms and features on policies purchased before the 1st October 2018 please refer to your original policy documents issued.

You can buy this cover if…

  • Your car, van, or motorcycle is under 10 years of age and less than 100,000 miles at the start of cover,

  • You are the person/company named as the policyholder or named driver on the motor insurance policy,

  • You are the V5 registered keeper or you are named as the customer on the finance/lease hire agreement,

  • Your car, van, or motorcycle invoice price does not exceed £75,000 at time of purchase,

  • Your vehicle was acquired using a dealer or contract hire company arranged finance or lease plan within the last 180 days,

  • Your vehicle is listed in the Glass’s Guide and principally used in the UK,

  • Your vehicle was supplied by a VAT registered dealership, broker or Contract Hire company.

You can’t buy this cover if…

  • You have purchased your vehicle with cash or financed using a personal loan,

  • You have taken delivery of the vehicle more than 180 days ago,

  • Your vehicle is used for competition, road racing, pace making or competition,

  • Your motor insurance is a Motor Trade policy,

  • You have purchased your vehicle from an auction,

  • Your vehicle has been modified from the Manufacturer’s specification without your motor insurers agreement,

  • Vehicles over 3500kg gross weight.

  • Your vehicle is used as a Taxi, Minicab, Driving School or Emergency Service vehicle unless a 10% premium supplement is paid,

  • Your vehicle is not listed in UK Glasses Guide or is a kit car.

Warning: The above is a summary. Before purchasing cover. Please read the full Terms and Conditions of this policy carefully to ensure it meets your needs and you meet it’s eligibility criteria.

For full eligibility and policy Terms & Conditions please view the Finance & Contract Hire GAP Insurance policy document.

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Finance & Contract Hire Gap Insurance