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What is GAP Insurance?

Guaranteed Asset Protection insurance more commonly known as GAP insurance is an insurance product that helps you cover any shortfall between your insurance provider’s payout and your remaining payments on a finance agreement.

There are a number of different types of GAP insurance but if you are leasing a vehicle then it would be lease GAP insurance that you need.

Taking out a GAP policy can help reduce the worry for you at a stressful time for you.

How Does It Work?

In the unfortunate circumstances that your car is involved in an accident or fire and is damaged beyond economical repair or is stolen and unrecoverable then your vehicle insurer will pay out a sum for the vehicle value at the time that it is written off. This amount will take into account the age, condition and mileage on the vehicle.

Your finance company will also send you a settlement letter which will confirm the amount owed to them for the remainder of the lease rental payments.

Where there is a gap between the amount that your insurance provider value the vehicle at and the amount the outstanding payments come to your GAP policy would then come into play.  It should cover the difference between these two amounts that otherwise you would be expected to pay.

You will just need to contact your GAP provider if your car is written off to start a claims process. They will then be able to talk you through the process and advise you on what you need to do.  

Other Things to Consider:

When taking out GAP insurance there are a few things you will need to take into consideration.

GAP insurance is separate to your standard comprehensive car insurance and works alongside this not instead of it. You will still need to insure the vehicle if you take out a GAP policy.  

The vehicle will need to be maintained in accordance with your manufacturer’s service schedule.

Please be aware that our policy only offers payouts up to £5,000. If the difference is more than this anything over £5,000 will still be your responsibility to pay.

Please also be aware that you will not be covered for the below:

  • Any circumstance giving rise to a claim which is known, or could reasonably be expected to be known, by the policy holder before the commencement date.
  • Any arrears in the leasing or insurance payments.
  • Any excess mileage charges or reconditioning cost.
  • Any VAT element of the credit or finance agreement.
  • Any excess or contributions required by the insurance company following a valid claim under the policy.

GAP FAQs:

Do I have to have GAP?

No, it is not compulsory to take out GAP insurance on a lease with Car Lease Special Offers. It is up to you if you would like to take out a GAP policy.

When can I take Gap out?

You can take out GAP insurance at any point up to delivery of your lease vehicle.

If you have taken delivery of your car and then decide you would like to take out a GAP policy then please get in touch with our Customer Services Team on 01722322888 and they will look into if this is possible for you.

Who provides your GAP insurance?

We work with Brian Johnston and Co Insurance Brokers LTD to be able to offer you GAP insurance.

When you have placed your order, we will let you know via email more information about the policy we can offer.

What’s the cost?

The cost of GAP insurance varies between suppliers, but we are pleased to be able to offer it at a one off payment price of £199 which should cover you for the duration of the lease.

If you decide you would like to take out a GAP insurance policy through us, we will send you a form to complete that will contain details of how to make payment.

Please be aware that this payment will need to be made before we can order the policy for you.

If you would like any more information on GAP insurance for your next lease car please contact our Customer Services Team on 01722322888 (option 3).

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