So I had gap insurance when I purchased a car on PCP, but the providers I used and others I looked at at the time all seem to have stopped doing it.

 

I'm now looking at leasing a car on a personal lease and wanted to ask if GAP insurance is still a thing and if so are there any reliable and reasonable providers out there?

 

I think (but need to confirm) that the car insurance has new car for 1st year and obviously with used prices so high there's a question on if GAP is a thing to do right now. Of course the new prices are also going up up up, so that's a reason to have it.

 

Any help appreciated.

Hi @cheezemonkhai we have access to a GAP product, GAP cover must be arranged during the first 100 days of ownership. full details can be found on our website: GAP Insurance | RTI Insurance | Get a Quote :: Chris Knott Insurance  please check out the link for full details or alternatively you can give the team a call on 0800 917 2274. Many thanks. 

 

Thanks,

 

As I don't have the car I've no reg plate yet, so the quote won't be something I can do.

When you say 100 days, it also mentions 3 years, can you do longer policies say for 42 months?

 

It's a bit of a shame as previously I could buy at 6 months old and take out 3 years cover for a car on 42 months of finance.

Hi @cheezemonkhai the GAP product we have access to must be purchased within 100days of taking ownership of the vehicle. The GAP policy we sell is for 3years cover only. There are other provider (online etc) who will offer 4years cover and maybe more.

I understand.

Just trying to find a reliable provider, although it looks like the one I used previously may have started doing cover again through their in house insurance arm.

Hi.

Just to let you know that we offer a 12 month product called Total Loss Protection. Whilst it's not exactly the same as your traditional GAP insurance we feel for some customers it can make a cost effective alternative.

Please feel free to take a look if you wish.

https://www.adrianflux.co.uk/extras/total-loss/

Regards,

Dan. 

On 08/08/2022 at 10:19, cheezemonkhai said:

So I had gap insurance when I purchased a car on PCP, but the providers I used and others I looked at at the time all seem to have stopped doing it.

 

I'm now looking at leasing a car on a personal lease and wanted to ask if GAP insurance is still a thing and if so are there any reliable and reasonable providers out there?

 

I think (but need to confirm) that the car insurance has new car for 1st year and obviously with used prices so high there's a question on if GAP is a thing to do right now. Of course the new prices are also going up up up, so that's a reason to have it.

 

Any help appreciated.

 

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