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Contract Hire & Lease GAP Insurance

 

Contract Hire & Lease GAP Insurance covers the difference between your motor insurer’s payout and the amount you still owe to the leasing company if your vehicle is written off through accident, theft, fire, or flood.

 

If you take out a lease without it, your motor insurer will usually only pay the car’s market value, which can leave you with a large outstanding balance.

 


Get GAP Insurance

CLICK FOR A QUOTE


 

Which Contract Hire GAP cover applies to your vehicle?

Total Loss GAP offers Contract Hire GAP cover from two different 'A' rated insurers. 

 

Select your vehicle’s recorded value to view the relevant policy details. You do not need to choose an insurer; the policy available to you is determined by the vehicle value and the applicable eligibility requirements.

 

£5,000 to £100,000 inclusive

View Contract Hire GAP underwritten by Helvetia Global Solutions Ltd, UK Branch.

 

 

Over £100,000 to £150,000 inclusive

View Contract Hire GAP underwritten by Hiscox Insurance Company Ltd.

 


Contract Hire GAP Insurance from Helvetia Global Solutions Ltd, UK Branch

What this policy covers

 

  • Covers the eligible shortfall - following the total loss of your lease vehicle, the policy can pay the difference between your motor insurance settlement and the eligible early settlement amount required by the leasing company, up to the maximum benefit shown on your policy schedule. The early settlement payment is made to the finance company.

  • Initial rental protection - Deposit Protection can cover the initial deposit or advance rental specifically recorded on your invoice and finance agreement. Every quote includes a minimum Deposit Protection limit of £1,000, which can be increased to £2,000 or £3,000. The most payable is the amount you paid, up to the limit shown on your policy schedule.

  • Payment of Deposit Protection - an eligible Deposit Protection benefit is paid to you unless you ask for it to be paid elsewhere.

  • Motor insurance excess - the GAP benefit can include the motor insurance excess deducted from your settlement, up to £1,000.

  • Policy transfers - you may be able to transfer the remaining cover to another eligible vehicle in certain circumstances. The first transfer is free; subsequent transfers are subject to a £35 fee and the policy’s transfer conditions.

 

Deposit Protection is supplementary cover available only with Contract Hire GAP and cannot be purchased separately.

 

Who and what is eligible?

  • You must purchase the policy within 180 days of taking delivery of the vehicle.

  • You must be resident in England, Scotland, Northern Ireland or Wales. Partnerships, limited companies and other legal entities must be permanently situated and, where applicable, registered in one of those countries.

  • Individual policyholders must be at least 18 years old.

  • You must have entered into a qualifying hire or lease agreement for the insured vehicle.

  • The vehicle must have a recorded insured value between £5,000 and £100,000.

  • The vehicle must be no more than eight years old.

  • The vehicle must be a car designed to carry no more than eight people, including the driver, or an eligible light commercial vehicle weighing less than 3,500kg.

  • Comprehensive motor insurance must be maintained for the insured vehicle throughout the period of cover.

  • The vehicle must not be an excluded vehicle or used for an excluded purpose.

 

What is not covered?

 

This policy does not cover:

  • A claim that is not a total loss.

  • A claim where your motor insurer declines the claim and does not make a motor insurance settlement.

  • Any part of your motor insurance excess above £1,000.

  • Arrears, maintenance charges, a secondary payment schedule, or amounts carried over from a previous finance agreement.

  • Insurance premiums, additional interest, title discharge fees or other financed amounts that do not relate specifically to the insured vehicle.

  • Any reduction made to the motor insurance settlement because of contributory negligence or the condition of the vehicle.

  • The VAT element of a claim if you are VAT registered.

  • Loss of use or other indirect losses arising from the total loss.

  • Vehicles used as taxis, for hire or reward, courier or delivery work, driving instruction, emergency or military purposes, racing, rallying or other competitive events.

  • Motorcycles, scooters, touring caravans, motorhomes, vehicles over 3,500kg, grey imports, kit cars, replica vehicles, non-UK specification vehicles and vehicles modified outside the manufacturer’s specification.

  • Theft by someone who had access to the vehicle’s keys.

  • Losses arising from war, terrorism, nuclear risks or cyber loss.

 

This is only a summary. Please read the Insurance Product Information Document, full policy wording and your policy schedule for the complete eligibility requirements, conditions and exclusions.

 

Key information

 

  • Insurer: Helvetia Global Solutions Ltd, UK Branch.

  • Claims administered by: Spectrum Insurance Services Limited.

  • Claims telephone number: 0114 321 9877.

  • Claim notification: You must notify the claims administrator as soon as reasonably possible and, in any event, within 30 days of the total loss.

  • Motor insurer’s offer: Contact the claims administrator before accepting a settlement offer from your motor insurer.

  • Theft or malicious damage: The incident must be reported to the police within 24 hours and supported by a valid crime reference number.

  • Policy term: The policy is non-renewable and ends on the date shown on your policy schedule, or earlier in the circumstances set out in the policy.

  • Transfers: A transfer to another eligible vehicle may be possible in limited circumstances. Transfer requests must be made within 30 days of replacing the vehicle. The first transfer is free and subsequent transfers cost £35.

  • Territorial cover: Cover applies in England, Scotland, Northern Ireland and Wales. It also applies for up to 90 days in any 12 months in the listed European countries, provided your motor insurer supplies an equivalent level of cover.

  • Cancellation: You can cancel within 30 days of purchasing or receiving the policy documents, whichever is later, for a full refund provided no claim has been made or is pending. After that, a pro-rata refund may be available for complete unused days, provided no claim or incident that may result in a claim has occurred.

 

Your policy schedule confirms your insured vehicle, cover period, maximum benefits and selected Deposit Protection limit.

 


 

Please note that the details below are for new Lease & Contract Hire GAP Insurance policies supplied by Total Loss GAP since 17th October 2025. For policies purchased before that date, please check your policy terms and conditions for the details of cover. 

 


Contract Hire GAP Insurance from Hiscox Insurance Company Ltd

What this policy covers

 

  • Covers the shortfall - pays the difference between your motor insurer’s market value settlement and the outstanding early termination figure owed to your leasing company, up to the claim limit on your policy schedule.

  • Initial rental protection - covers your upfront rental payment (advance lease payment) up to £3,000.

  • Excess cover - reimburses your motor insurance excess following a total loss, up to £500.

  • Temporary replacement vehicle - contribution of up to £40 per day for 30 days towards a hire car while your claim is being settled.

  • Additional excess cover - reimburses your excess on successful motor insurance claims that don’t involve a total loss, up to £300 per year and £1,000 over 48 months.

 

See: How are GAP Insurance claims worked out?

 


Who and what is eligible?

 

  • You must be resident (or a registered company) in the UK, the Channel Islands, or the Isle of Man.

  • Your lease payments must not exceed £3,000 per month, and the lease term must not exceed 60 months.

  • The vehicle must:

    • Be under 10 years old and cost (or be valued at) over £100,000 and up to £150,000 when delivered.

    • Be a car or light commercial vehicle up to 3.5 tonnes.

    • Be covered by comprehensive motor insurance throughout.

    • Be listed on the lease/contract hire agreement and purchased from a supplying dealer.

 


What is not covered

 

This policy does not cover:

  • Negative equity from a previous agreement, or any arrears or fines on your lease.

  • If the driver was uninsured, unlicensed, disqualified or under the influence of alcohol or drugs at the time of loss.

  • Vehicles insured under motor trade policies.

  • When your motor insurer provides (or offers) a brand new replacement vehicle instead of a payout (this may be rare on a lease, in any case). 

  • Vehicles such as taxis, couriers, daily rentals, driving school cars, emergency vehicles, modified cars, or grey imports.

  • Salvage value if you retain the written-off vehicle.

  • Additional hire car costs beyond the daily/30-day limit (e.g. fuel, deposits, excesses, mileage).

  • Losses arising from war, terrorism, nuclear risks, cyber attacks, solar weather or pollution.

  • VAT if you are VAT-registered and can reclaim it.

 


 

Key information

 

  • Insurer: Hiscox Insurance Company Ltd (A-rated) (Find out more about our Insurers and Plan providers). 

  • Claims administered by: Spectrum Insurance Services Ltd.

  • You must report claims within 90 days of the loss and before accepting your motor insurer’s offer.

  • Policy is non-renewable but can transfer in limited cases (e.g. to a family member or replacement vehicle).

  • Cancellation:

    • Within 30 days - full refund (if no claim).

    • After 30 days - pro-rata refund minus £30 fee (if no claim).


 

Common Questions about Contract and Lease Hire GAP Insurance

 

1. How can I buy Contract Hire GAP Insurance?

As always, we try to keep things simple. We ask you to run through some simple eligibility questions. Once this is completed, we only ask you two things:

  1. The purchase value of your lease vehicle (you can use the P11d value for this). 
  2. The number of years of cover you need.

That is it. Pop those details in, and you will receive a premium price for the entire term. 

 

2. Do I need GAP Insurance on a lease or contract-hire vehicle?

 

When you take a lease or contract hire deal on a vehicle, you are committing to the terms of that agreement. You will have a settlement to pay if the vehicle is written off part-way through. If the motor insurer's settlement does not cover this, you can have a shortfall to pay. 

Whether you need GAP Insurance on a lease is a matter for you. It is neither a legal nor contractual need to have GAP. But, if you would like any potential shortfall protected, it can be a great idea.

 

See What is a Contract Hire? - Leasing explained. 

 

3. Can you buy Lease and Contract Hire GAP Insurance by itself?

 

GAP Insurance can only be used with a fully comprehensive motor insurance policy. In the event of a claim, the motor insurer must pay out the market value settlement on your vehicle. If so, then you can claim your GAP cover. If you buy GAP Insurance alone, without motor insurance, you cannot legally drive on the road.

If you ask whether you can buy Contract Hire GAP Insurance away from the supplying motor dealer, leasing company or finance house, the answer is yes! You can buy Contract hire GAP Insurance from an independent provider, such as Total Loss GAP, to cover your lease. Your dealer or leasing company cannot impose a rule that you buy from them. The dealer should not tell you that you must buy from them or include it in the deal without your consent. If they do, then you can discuss that with the Financial Conduct Authority.

 

4. Is a GAP insurance policy worth the money?

 

Like all insurance, the answer comes down to your view on the risk. Around 500,000 vehicles are written off annually in the UK (between accidents, thefts, fire, etc). Thefts, in particular, are on the rise, with vehicles with keyless entry often targeted. If you have a vehicle on a lease, you are obligated to pay that lease back. If the vehicle is written off, then the amount provided by your motor insurer may not be able to pay the lease off for you.

You could be left in a position of having to pay off the shortfall on any lease if the vehicle is written off. Plus, you may have to find a large deposit 'advanced' rental to put down on a replacement vehicle. Lease/Contract Hire GAP, with the option of deposit protection, could cover these costs for you.

 

5. Do you need GAP insurance if you are covered by fully comprehensive motor insurance?

 

This is a good question. Your motor insurer should, in the event of a total loss, cover the vehicle's market value for you. This value will be at the time of your claim, not be the same as when your vehicle was new or at the time of vehicle purchase. Would this be enough to cover your lease settlement if you only get the market value in the settlement? If not, then this leaves a shortfall payable to you.

 

6. My motor insurer offers "new for old" in the first year. Do I need GAP insurance?

 

Many motor insurers offer to replace your vehicle in the first year with another new model. If so, do you also need GAP Insurance to cover your lease?

There is a good reason not to rely on 'new for old', particularly if you have a lease.

  • It is often a condition that you are the vehicle owner to get replacement cover from the motor insurer. With a contract hire agreement, the leasing company is the owner.

Check your motor insurer terms AND what your leasing company would allow. In our experience, 'new for old' coverage rarely applies to a contract hire or lease agreement.

 

7. Is Lease or Contract Hire GAP the same as Return to Invoice GAP Insurance?

 

The simple answer is NO.

Lease GAP is designed to cover a shortfall on a vehicle you do not, and never can own, as part of the lease agreement. Return to Invoice can cover you back to the price you paid for the vehicle, as shown on the purchase invoice in your name.

With a lease there is never a purchase invoice for the vehicle in your name, therefore you cannot claim the invoice price back, as you have never paid it.

For more information on other types of GAP Insurance, try our Complete Guide to GAP Cover.

 

8. Are Lease/Contract hire the same for personal and business contract hire agreements?

 

Pretty much so, yes. The policy is designed to pay off the shortfall payment on your lease. 

 

9. Does GAP Insurance Cover Early Termination?

 

It will only cover the 'early termination charge' if your motor insurer writes off the vehicle. That could be following a fire, theft, flood, accident, etc. If you choose to hand back the vehicle voluntarily, say after a redundancy, then this would not be covered by our lease GAP Insurance cover. You would probably need to find another product called Early Termination Insurance to cover those eventualities.

 

10. Can Total Loss GAP Insurance cover Commercial Vehicles?

 

Total Loss GAP lease and contract hire GAP can cover light commercial vehicles up to 3500kg. There are some restrictions on vehicle use (e.g. we do not cover 'hire and reward', courier, etc.). If you want to chat about your vehicle, please contact us for clarification.

 

11. Do I own a vehicle sourced using a contract-hire agreement?

 

No, you do not have the legal right to take full ownership at the end of your agreement.

In some cases, at the end of your contract, your lease provider may offer you the option to buy it; however, this is not guaranteed, and you would have to negotiate the price at the time. 

 

12. What happens to my GAP insurance at the end of my contract?

 

Your GAP insurance will expire at the end of your lease. If you hand your vehicle back early on the understanding that you have not made a claim you will be able to cancel and get a pro-rata refund.

 

13. How much is a Contract or Lease hire GAP insurance?

 

This will depend on several things.

  1. The value of the vehicle
  2. How long do you want your policy to cover you?
  3. If the vehicle is a full electric or a combustion engine-powered vehicle.

The quickest way is to click for an instant quote. Our automated system will then adjust the prices depending on your chosen cover.

 

14. Is Contract and Lease Hire GAP insurance the same as finance GAP?

 

No, in most cases. Contract Hire & Lease GAP is specifically for lease agreements where you have no option to own the vehicle. 

Finance GAP is normally available where you may have a PCP or HP agreement, where you can own the vehicle. 

Both are designed to cover a shortfall between the motor insurer's settlement and the finance settlement, but the types of finance agreements covered can be different. 

 

15. Why choose a Total Loss Lease and Contract hire policy?

 

Our policy is the logical choice for many reasons. 

  1. We do not offer dual prices, discount codes or cashback. Instead, we believe that everyone, no matter who they are, should have access to our best price, first time, every time. You will never find one of our policies anywhere else at a better price.
  2. We provide a comprehensive policy with features often not found elsewhere. Depending on the vehicle value and eligibility requirements, cover is underwritten by either Hiscox Insurance Company Ltd or Helvetia Global Solutions Ltd, UK Branch. 
  3. Our policies are backed by the Financial Services Compensation Scheme ( FSCS), we are regulated by the Financial Conduct Authority, and how your claim is calculated, handled, and settled in Trading Standards is approved. 
  4. We don't pay for affiliations, which are nice but cost money. Instead, we prefer to pass our savings on to you through lower premium prices.
  5. We have longevity. We have been doing this for a long time. Over a decade, so we are here for the long haul. Some providers come and go, so you will be pleased to know that we will be here to help and assist you when you need us.
  6. We don't sell, pass on, or give your data to anyone for marketing reasons. We have to give your details to the underwriters to ensure your policy is secure and in place, but no one else is ever given access.
  7. Our customer support team is not paid using a commission-based structure. Instead, any bonuses they get are based on customer service levels. So, it is in their interest to ensure you are looked after from quote to claim and not to offer a hard sell.
  8. We are proud to be independent, meaning we can cherry-pick policies that offer the best levels of contract and lease hire GAP insurance at the best prices. 
  9. But don't take our word for it. Why not look at our Feefo reviews? These are from real people, and each review is independently verified. Unlike other review systems, we can not add, delete, remove, suspend, or alter any review. We can respond to them, but that is as far as our control of them extends. 

 

16. Where is Total Loss Based?

 

Total Loss GAP is a trading style of Aequitas Automotive Ltd, who are based at Aequitas House, Hamilton Square, Birkenhead, Merseyside. Aequitas House is a beautiful, Grade 1 listed Edwardian townhouse converted into offices in 2015, and the head office base for our company. 

All claims are handled by Spectrum Insurance Services Ltd, who are based in Sheffield. 

Depending on the vehicle value and eligibility, the policy will be underwritten by either Helvetia Global Solutions Ltd, UK Branch, or Hiscox Insurance Company Ltd. 

All services are provided by UK-based companies and contact centres. 

 

17. When would my Contract and lease hire GAP insurance not pay out?

 

Every policy has terms and conditions, and ours does, too. We are proud of them, and over the years, listening to you, we have tried to ensure that they are as accessible and straightforward to understand as possible. However, there are important terms you need to understand.

Your Contract and Lease Hire GAP Insurance may not pay out if:

  • You are not fully comprehensively insured for the vehicle named on the lease.
  • The lease for the vehicle is not in your name. 
  • You are using your vehicle as a driving school
  • You use your vehicle for hire, reward, or delivery.
  • If your vehicle is used for any form of the motor trade, e.g. a body shop loan car.
  • If your motor insurance company decides that you do not have a valid claim and are not prepared to settle your claim.
  • If you are not over the age of 18.
  • If you do not have a full licence.
  • If you are using the vehicle for class 2 business purposes. e.g. a pool car.

Please see your contract and lease hire policy documents for a complete list of terms and conditions.


You may also like: 

Contract Hire GAP Insurance questions and queries

PCP vs Contract Hire - compare funding methods for your vehicle

New for Old replacement cover with you motor insurance? - Why it may may not work with a Contract Hire agreement

Lease & Contract Hire short guide and explanation


Instant Quote and Buy Contract Hire Gap Insurance