Lease/Contract Hire Gap Insurance
5-star rated Lease and PCH Gap Insurance with a 30-day moneyback guarantee.
Thanks to depreciation, your lease car could be worth much less than the amount you have financed. If the worst happens, you could be liable for the difference between your motor insurer’s settlement figure (typically, the value of the vehicle at the time) and the outstanding balance if the vehicle is declared a total loss.
Lease / Contract Hire Gap Insurance from Direct Gap can remove that stress, paying the difference between any outstanding finance balance on your lease and the amount your insurer pays out following a total loss (or ‘write off’). We’ll even include up to £500 towards your motor insurance excess.
Protect your lease car today and join thousands of happy customers choosing 5-star Feefo-rated PCH Gap Insurance from Direct Gap.
This policy is for individuals with a vehicle on Lease or Contract Hire. If your vehicle is financed via a PCP or Hire Purchase (HP) Agreement, then this policy is not suitable for you. Our Return To Invoice policy offers great coverage in these circumstances
Only £ would be covered by your comprehensive car insurance leaving a gap of £.
Get Gap Insurance today to protect yourself and drive with peace of mind.
Why Should I Consider Lease & Contract Hire Gap Insurance?
Even leased cars (which are usually new) suffer depreciation, typically losing 15-30% of their value within the first year of driving, rising to 50% over a three-year period. If yours is declared a ‘total loss’ through fire, theft or accident, for example, your insurer will usually settle at the amount the car is worth at the time, leaving you liable for the outstanding finance balance.
In the UK, a car is declared a write-off every 90 seconds, so it’s no wonder more and more drivers are choosing to protect their lease car using Direct Gap.
Our Gap Insurance will pay the difference between your final settlement figure and any amount still outstanding on your lease. With cover starting from £170, with no claim limits up to £50k, including all named drivers, why not get peace of mind today with Direct Gap?
Why choose Direct Gap as your Gap Insurance provider?
So, you’ve purchased your new car and you’re seeking a robust gap insurance policy at a reasonable cost.
Here are just some of the many reasons why Direct Gap will let you DRIVE with peace-of-mind.
Trusted Since 2009
Since 2009, we’ve helped more than 160,000 customers protect vehicles worth over £4 billion.
With an average rating of 4.9 out of 5 from more than 14,000 reviews across Google, Feefo and Trustpilot, we’ve built a reputation for dependable cover and consistently excellent customer service.
Regulated Insurance Products
We only offer regulated insurance products, giving our customers important safeguards and peace of mind.
We’re authorised and regulated by the Financial Conduct Authority. Our FCA authorisation number is 1050283.
Eligible customers can also refer complaints to the Financial Ombudsman Service and may benefit from Financial Services Compensation Scheme protection.
Your Interests First
Our team aren’t paid commission for selling policies, so there’s no incentive to recommend additional cover or a more expensive policy unnecessarily.
Instead, they’ll take the time to understand your circumstances, answer your questions honestly and give you the relevant information so you can choose cover that genuinely meets your needs.
Flexible Policy Options
Our policies are designed to adapt to real life rather than take a one-size-fits-all approach.
From different types and levels of protection to free vehicle transfers and the option to defer selected policies for up to a year, we give you the flexibility to choose cover that works around your circumstances.
Gap Insurance Experts
Our UK-based team consists of professionally trained specialists with extensive knowledge of cars, motor finance and Gap Insurance.
Whether you need help understanding your options, choosing suitable cover or managing an existing policy, you’ll speak to someone who knows the subject without being passed around a generic call centre.
See what our customers are saying about us
We’re rated 4.9 out of 5 across Trustpilot, Feefo and Google, based on more than 14,000 reviews.
Frequently Asked Questions
What is Contract Hire Gap Insurance?
In the event of your vehicle being written off in an accident or stolen, our Lease and Contract Hire Gap Insurance can offer priceless financial protection. It will pay the difference between the outstanding finance balance and the settlement you receive from your motor insurer.
Cover will include up to a maximum of £500 motor insurance excess.
How does Contract Hire & Lease Gap Insurance work?
If your agreement commits you to £20,000 in total payments, but your vehicle is declared a Total Loss and your motor insurer settles at £14,000, this would leave a £6,000 shortfall on your lease.
A Lease Gap Insurance policy from Direct Gap is designed to cover this difference, settling the outstanding amount in line with the terms of your policy.
Why do I need Contract Hire or Lease Gap Insurance?
Because the value of your car at the time of being declared a total loss will be different to when you first bought it, your motor insurer will offer you a settlement in line with its current worth, rather than the value at the time of purchase.
Recent research shows that the average car depreciates by as much as 60% in its first three years, which, if your car were to be written off, could leave you with a significant deficit to pay on a vehicle you can no longer drive.
That’s a situation that nobody would relish, which is why our Lease/Contract Hire Gap Insurance is worth considering as a sensible option to mitigate any damaging costs if the worst were to happen to your car.
What happens if I don't have Contract Hire Gap Insurance and my vehicle is written off?
If your vehicle is declared a Total Loss, you may still have a significant balance remaining on your hire or lease agreement. This is because your motor insurer’s settlement is based on the vehicle’s market value at the time of the incident, rather than the original cost or total agreement value.
A Lease Gap Insurance policy from Direct Gap is designed to cover this shortfall. Without this protection, you would remain liable for the outstanding balance, leaving you to continue payments on a vehicle you no longer have.
Do I need Gap Insurance on a leased car?
Gap Insurance for lease hire is not a legal requirement in the same way that standard motor cover is. But it could prove a shrewd financial decision if your vehicle were to be declared a total loss.
If your car got stolen or was written off and you had not taken out a Gap Insurance policy, the leasing company would expect you to pay off the remainder of the lease. This could run into many thousands of pounds.
What happens when my car has been declared a total loss?
If your vehicle is declared a Total Loss and you have Contract Hire & Lease Gap Insurance in place, the process will typically follow these steps:
- Your motor insurer confirms that the vehicle is a Total Loss
- A settlement figure is obtained from your finance or lease provider
- Direct Gap will then settle the difference between the insurer’s payment and the outstanding finance balance, in line with the terms of your policy
- Your initial rental may also be reimbursed, up to a maximum of £3,000
Does Contract Hire Gap Insurance cover me if I’m at fault?
Yes, if your car is written off in an accident that was your fault, your Contract Hire Gap Insurance will still cover you. However, some exclusions apply. For example, if the driver is under the influence of alcohol or non-prescription drugs, the policy will not be valid. The same goes for any illegal activity, fraud or an act of wilful negligence. Please see your policy wording for a full list of the exclusions.
Which is the best Gap Insurance for PCP?
Our Lease / Contract Hire Gap Insurance is not suitable for vehicles purchased on a PCP agreement. If you have purchased your vehicle using Personal Contract Purchase (or even Hire Purchase), then you may wish to consider our Return to Invoice or Vehicle Replacement Gap Insurance.
Whatever your situation, here at Direct Gap we’re committed to providing the solution that best suits your requirements.
Are Contract Hire Vehicles covered by this policy?
Yes, our Lease Gap / Contract Hire Insurance policy is suited to Contract Hire vehicles.
How do I get a quote for Contract Hire Gap Insurance?
It couldn’t be simpler to get a Gap Insurance quote. Just enter your vehicle’s make, model, purchase price and the desired length of policy.
We will provide you with a quotation in a matter of seconds, and you can be protected in minutes.
How long can I have owned the vehicle for and still buy the policy?
You must have taken delivery within the last 90 days.
Does Contract Hire Gap Insurance cover my motor policy excess?
Yes, up to £500 in the event of a total loss claim.
Is Deposit Protection available?
Yes, included as standard, your initial rental will be protected up to £3,000.
Can anyone drive my vehicle and still be covered by Lease Gap Insurance?
Yes. Your Lease & Contract Hire Gap Insurance will include all drivers provided that they are covered on your comprehensive motor insurance policy to drive the vehicle as a named driver.
How can I pay for my Contract Hire Gap Insurance?
You can pay for your policy in full using a credit or debit card, with no additional card charges.
Alternatively, you may have the option to spread the cost over 10 monthly payments. This facility is provided by an independent finance provider, and a service fee may apply. If this option is not available online, please contact our team, who may be able to assist.
How old can my car be to buy Lease / Contract Hire Gap Insurance?
Your vehicle must be a new Lease or Contract Hire vehicle.
Who is the insurer of this policy?
The insurer of this policy is Hiscox Insurance Company Limited.
What is total loss?
A total loss (often referred to as a write-off) is when your motor insurer determines that your vehicle is either beyond economic repair or has been stolen and not recovered.
In these situations, the cost of repairing the vehicle is considered uneconomical compared to its market value, or the vehicle cannot be returned. Your insurer will then offer a settlement based on the vehicle’s value at the time of the incident.
How do I make a claim on my policy?
You need to wait until your motor insurer has declared your vehicle a total loss before you can make a claim. Once they have done that, the process is perfectly straightforward:
- Check your policy wording for claims contact details (if you're unsure, give our team a call on 01422 756 100).
- Fill out the claims form and send requested evidence.
- Your paperwork will be checked.
- If all is approved, your money will be sent to you via bank transfer.
For more information, head over to our guide on how the claims process works.
Never accept an offer from your motor insurance provider without approval from our claims team, as this may invalidate your policy, and in most cases, we can secure a better offer for you.
Can I cancel my Gap Insurance?
Yes, if you wish to discontinue your policy, then you can cancel.
Usually, to be entitled to a full refund, you need to do this within 14 days of the cover’s start date. However, we offer you an extended grace period of 30 days. Beyond that period, you'll be refunded on a pro-rata basis, excluding any arrangement fees that may be applicable.
Whose name should the policy be in?
The policy should always be in the name of the owner/hirer or registered keeper of the vehicle.
Am I covered for theft of vehicle with keys?
Yes; you are covered when keys are stolen from your home or office which results in vehicle theft. However you must exercise due diligence and take appropriate steps to safeguard both the keys and the vehicle.
No insurer, including your motor insurer, will provide cover for wilful negligence. For example if you leave the keys in the vehicle and you go off to pay for fuel which results in the vehicle being stolen.
Why would this policy not pay out?
Please see your policy wording for full details. However, the main exclusions of Gap Insurance are when the vehicle becomes a total loss as a result of:
- The driver being under the influence of non-prescription drugs or alcohol
- Being involved in illegal activity
- Fraud or an act of wilful negligence, e.g., leaving keys in the ignition whilst the vehicle is unattended.
Am I covered to drive my vehicle abroad?
Yes, subject to your comprehensive motor insurance being extended to the relevant country, you are covered in Ireland, the Isle of Man, the Channel Islands, Switzerland, and the countries of the European Economic Area.
Why is Direct Gap so much cheaper than motor dealers' quote?
We are an internet-based provider, and as such, we have lower overheads than motor dealers. As a result of the high volume of Gap Insurance that we sell annually, we can provide quality policies at the keenest prices.
You can be confident that our prices are lower than those quoted by dealers and many other websites. Paying less than you have been quoted elsewhere in no way means that you are buying an inferior product; it just means that they are making more profit from your purchase!
When and how do I receive my policy documents?
Once your payment has been processed, your policy documents will be issued to you, usually within 2 hours.
You will also receive confirmation of your payment. Both documents should be retained for your records.
If you do not receive your policy documents or payment confirmation within this timeframe, please contact our team on 01422 756 100.
Is this a one off or annual payment?
Most of our policies are fixed-term, with a one-off payment.
Alternatively, we may be able to arrange payments over 10 months. Please note that the payments are collected by a third-party agency and a small administration fee applies.