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Buy Lease Hire Gap Insurance.


How does lease gap insurance work? In brief, a Lease Gap insurance, sometimes called contract hire gap insurance, will pay the difference between your insurance company's fair market value settlement on the day your vehicle was written off and the amount outstanding on your lease or contract hire agreement. This difference can be made up of different elements but traditionally consists of

  • A proportion of your outstanding lease payments
  • Any differences in Market value estimates
  • early termination charges.

To complicate matters, your motor insurance company and lease contract provider may call this "gap " something else.


At Total Loss, we believe in simplicity and clarity.


We refer to the "gap" as a straightforward " shortfall ".


From your perspective, as long as you are up to date with your lease payments and there are no late payment charges on your lease agreement, your Gap insurance will pay the gap in full directly to your finance company. 


Your policy will also contribute up to £250 toward the cost of your motor insurance excess.


Contract Hire Gap Insurance Quote  All Named Drivers covered on your Total Loss Gap Insurance policy * T&C's Apply  Contract Hire Gap vehicles up to £1000 per month


A "lease" can mean many different things to many people, so it is essential to consider the right level of coverage before you buy Lease gap insurance.


Before buying any form of lease hire gap or contract hire gap insurance, you need to answer one crucial question.


Does your lease contract give you the legal right to take ownership at the end of the agreement?


This question is the key to determining the right level of gap insurance.


This is important as it can affect the level of gap insurance you can buy and how any gap insurance claim is calculated, ultimately affecting how much you are paid.


At Total Loss, our goal is to give you all the information you need to be able to make informed choices and help you buy the best level of lease gap insurance.


We ask about the type of lease you have because it's a critical factor in determining the right level of cover. A lease can describe a personal contract purchase, a finance lease, a contract hire, or a lease hire.


This means that we do not want to pay more than you have to, and we equally want to ensure that you get the best financial settlement when you make a gap insurance claim.


Some motor manufacturers refer to their form of personal contract purchase and their finance lease as a lease.


Equally, some lease hire providers state that you can negotiate a price to buy your vehicle at the end of the contract. This is very different from a contractual right, which is a legal obligation to allow you to buy the vehicle at the end of the lease. Negotiating a price is possible, maybe and is at the finance provider's discretion.


The question is critical. If the vehicle is not yours and can never be yours, we can not protect the invoice or replacement cost as it is not yours to protect.


If you have the contractual right to take ownership, even though you may never wish or plan to as you have the right you can protect the invoice or replacement cost with other types of gap insurance such as

  • Return to invoice gap insurance
  • Vehicle Replacement Gap insurance.


So before you click for a lease hire gap insurance quote or speak to a team member, please check your finance agreement.


Key Benefits of a Lease & Contract Hire Gap Insurance policy from Total loss

  • Immediate cover
  • Pays a contribution towards your motor insurance comapneis excess.
  • Cover all drivers over the age of 18 with a full UK licence.
  • Up to 90 days European Cover
  • Cover for new and used cars.
  • Protect up to £3000 of your initial rental * 


* Your Initial Rental is sometimes called your deposit. Often, this is a multiple of your standard monthly payments.


What your lease and Contract Hire agreement will not cover.

  • The cost of your road fund licence
  • Any late payment charges or arrears on your finance agreement.
  • If you have decided to add the initial rental cover, your policy will not cover any amount over £3000.( deposit Protection ) 
  • A replacement car while your claim is being processed.
  • Monthly rental payments while your motor insurance decides to repair or write off your vehicle.


What happens if you don't buy a form of cover?

In the worst case you could be left with no vehicle to use and a settlement to pay to your finance company. Please remember that with a lease or contract hire vehicle, the vehicle itself is the guarantee. Meaning if it is written off, the finance balance is due for payment immediately.


Please see the lease gap insurance policy documents below for a full list of terms and conditions.


Contract Hire Gap- Lease Hire Gap Insurance from 

Finance Gap Insurance / Lease Gap Insurance from Total Loss pays the difference between your insurance company's fair value settlement and the amount outstanding on your lease or contract hire agreement.

IPID for BMW Total Loss Contract Hire policies purchased from June 24Total Loss IPID From June 2024            T&Cs for BMW Total Loss Contract Hire policies purchased from June 24TLG Contract Hire Gap insurance policy From June 2024

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