David@GAPInsurance

Hi. I only just saw this. I hope I'm not too late. For a Personal Lease (PCH) agreement, you need to be looking at a Contract Hire GAP insurance policy. In the event that your vehicle is declared a Total Loss, this type of cover aims to pay the difference between your motor insurer's valuation of the vehicle and the early termination fee (aka "settlement figure") due to the finance company. The method of calculating this early termination fee varies (sometimes considerably) from one finance company to another but as a general rule, it usually consists of their (the finance co's) perceived value of the vehicle at the time of loss plus something towards the rentals due to the end of the original agreement term. This something can range from a small percentage to almost the entire balance but is often around 50% of the sum of all rentals. Contract Hire GAP insurance cover will usually contribute £250 to any excess deducted by your motor insurer for that Total Loss claim and in most cases, you're also able to build in cover that would see you reimbursed up to £3,000 of the initial rental you paid at the start of the lease. Separately, in your post, you mention "new car for 1st year" - commonly known as "New-For-Old" cover. You should approach this with caution, though. It's usually the case that New-For-Old cover from your motor insurer is conditional upon you being the first and only registered keeper of the vehicle from brand new. Given that with a Contract/Lease hire agreement it's the finance company who are named on (and who will retain possession of) the V5 registration document, you're never the registered keeper of the vehicle and the considerable majority of cases would therefore be ineligible to benefit from the New-For-Old cover by default. Even if your motor insurer *did* permit such cover for leased vehicle, it's still fraught with potential issues. You can read more about them here: Myth: You Do Not Need GAP insurance In The First Year You can see more about Contract Hire GAP insurance on our website: GAPinsurance.co.uk and if you use code BRISKODA10 you'll get 10% discount off our quoted premium too. Cover is available for durations of up to 5-years and can be purchased at any time so long as there's more than 12 months remaining on your lease. Although if you require cover for your lump sum initial rental of up to £3k, you need to purchase cover within the first 12 months of the lease. Our policies are 5-star rated and, underwritten at Lloyd's of London. If you require any further guidance, please don't hesitate to get in touch. David

That's still a high price. If that's something you've taken out recently you may still be in your cooling off period (even if you're not, with a cancellation fee to pay you could *still* save money). Check us out at https://gapinsurance.co.uk/skoda/ for a quote to compare. Code BRISKODA10 will grant a further 10% discount too.

I appreciate the frustration... on the subject of GAP insurance specifically, that they did this is really quite interesting. It's been illegal since September 2015 for a motor dealer to both introduce GAP insurance to you and conclude the sale of it on the same day. There has to be at least two clear days between them providing you with the "prescribed information" about GAP insurance - this very specific information is supposed to detail all the main features, benefits and exclusions along with an instruction that GAP insurance cover is optional and can be purchased from other providers - and them then concluding the sale of a policy with you. E.g. if they first introduce the topic of GAP insurance to you on a Monday, it would be Thursday at the earliest before they'd be legally permitted to raise the topic of it again with you. Although, you do have the right to waive your option to wait until the Thursday and if you wish can instruct them on the Tuesday or Wednesday that you wish to purchase cover but, this cannot be through encouragement from them. Sadly... the attention that motor dealers have been paying to these rules since 2015, has been lacking somewhat

£500 for GAP insurance on such a vehicle is extreme to say the least... by comparison I'd expect our 3-year Invoice GAP insurance policy to be somewhere around £150 - £170 in total (using discount code BRISKODA10). Check us out at GAPinsurance.co.uk/SKODA