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Contract Hire & Finance Lease Gap Insurance.

How Does It Work? 

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Cover includes payment of up to 3 of your original advance rentals - to a maximum of £3,000.00



Up to £250 paid towards your motor insurers excess when your claim is paid.



Changes to your policy including transfer, address and registration number.

How does it work?

Contract Hire & Finance Lease Gap

In the event of a write-off, your fully comprehensive motor insurer will only pay what the vehicle is worth at the time of write off and the motor insurer will pay this directly to your Contract Hire or Leasing company.

In the majority of cases, this is not enough to settle your lease agreement as many Contract Hire and Finance Lease agreements will also expect to receive a high proportion of the rentals that are due and not yet been paid*. Unfortunately, your fully comprehensive motor insurer will not cover any financial shortfall owed to your leasing company.

With a Contract Hire and Finance Lease Gap Insurance, the policy will 'top-up' what your motor insurer agrees to pay - up to the balance required by the leasing company to settle your agreement*.

If you have paid advance rentals, this policy will also pay up to 3 months (to a maximum of £3,000.00) of your original advance rentals for you to use as a deposit towards another new vehicle.

In our experience, the terms of Lease and Contract Hire agreements can vary considerably. It can be difficult, if not impossible, to calculate what your financial losses might be if your car or van were to be written off. If in doubt, please contact your leasing company, leasing broker or dealer for written clarification of lease settlement terms.

Example for Contract Hire and Finance Lease users 

A customer arranges a 2 year lease with monthly rentals of £350.00.

The customer chooses to pay 6 rentals in advance totalling £2,100.00
Followed by 23 monthly payments of £350.00
The customer must hand the vehicle back at the end of the agreement in good condition, to enable the leasing company to sell it and receive its value.

The vehicle is written off in month 16 and the fully comprehensive motor insurer pays a market value of £22,000.00 directly to the leasing company.

The leasing company's settlement figure (which includes 100%* of the outstanding rentals) is £27,000 and therefore the £22,000.00 paid by the motor insurer is not sufficient to settle the total amount of £27,000.00 - leaving the customer without the use of the vehicle and with a debt of £5,000.00 they are obligated to pay.

In addition to this unfortunate set of circumstances, the customer will also need to find a deposit/advance rentals to enable them to lease a replacement vehicle.

If the customer had purchased a Contract Hire and Finance Lease Gap Insurance policy, the Gap Insurer will not only help to settle the financial shortfall owed to the leasing company of £5,000.00 but it will also cover up to 3 months (in this example £1,050.00) of the original advance rentals paid which is used as a deposit for a new vehicle and new agreement

* Some leasing companies will expect 100% of the outstanding rentals due, some may apply a discount - please ask your lease company

What is a write off?

A write off is also referred to as a total loss.  A write off is when your insurer pays you or the owner what the vehicle is worth at the time of the write off. A write off can be caused by a number of events;

Accidental damage

Accidental damage could be severe damage suffered in an own fault or third party fault road traffic accident. Most motor insurers will declare your vehicle a write off if the cost of repair is 50% or more of the market value of the vehicle. 


When a vehicle is stolen and not recovered, your motor insurer will declare the vehicle a write off. 

Fire and Flood

Fire and Flood are common causes of write off. Where the cost of repair is high, your motor insurer will declare your vehicle a write off.

The above are simple explanations to help you understand how the risk might affect you. Not all costs are covered by this policy.
*Always refer to the full policy terms and conditions below for more detail and always before purchase.

Also pays up to 3 original advance rentals to max of £3k
Covers up to £250 toward your motor insurers excess
No Claim limit on cars up to £50k, £50k limit thereafter
Covers unlimited number/value of factory fitted options
Covers unlimited dealer accessories fitted to vehicle
No mileage restrictions during policy term
Covers on the road costs (delivery, plates & first reg fees)

Any driver over 18yrs of age covered if insured to drive

We have been featured in Which? for many years
We only use independently 'A' rated global insurers
Financial Conduct Authority Authorised and Regulated
Covered by Financial Services Compensation Scheme
We are UK specialists with over 40 years experience
FREE policy amendments
FREE policy transfers
We are independently 5 star rated

We are directly authorised and regulated by the Financial Conduct Authority and have been since 2007.

The Financial Conduct Authority is our industry watchdog. We are directly authorised and regulated by them. This means the FCA monitor access to our service and financial performance every six months to ensure we are meeting their requirements.

FCA Authorised

All policies arranged by us are protected under the Financial Services Compensation Scheme.

All insurances arranged by us and our website are covered by the Financial Services Compensation Scheme. To read how this protects you, please read our full policy terms and conditions document.


If you change your mind within 30 days, we'll refund your premium less a £15 administration fee. 

We uniquely have over 40 years experience in vehicle sales and specialist supplementary vehicle insurances.  When it comes to Gap Insurance, we are experts - it's what we do. All our staff are mature and highly experienced.

30 day cooling off


Click2protect UK Limited
trading as www.car2cover.co.uk
The Officers' Mess
Royston Road

CB22 4QH

email : mail@car2cover.co.uk   

tel : 01438 870615

Call us Monday - Friday 9am - 5.30pm

or Saturday 10am - 2pm


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