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Why add deposit protection to your Contract Hire Gap Insurance?


Is contract hire deposit protection a case of insurance for insurance's sake, or genuine value for money, and a real-life worthwhile benefit?


Naturally, we are a gap and deposit protection insurance provider, so you would expect us to be biased. However, we know this uniquely positions us as we see the real-world benefits.


The benefit of contract hire GAP insurance is a simple question of protecting yourself against any shortfall should your car or LCV be written off. This policy protects you against being left paying for a vehicle that you no longer have the use of. 


So, if your contract-lease hire GAP insurance pays any financial shortfall left between your motor insurance company's settlement and the amount outstanding on your lease, why should you consider adding deposit protection?


Deposit protection is an added feature that we were pleased to introduce to the GAP insurance market many years ago. The theory is that many customers are regularly encouraged to pay large advanced rentals or deposits to bring down monthly payments. 


Many years ago, 3 or 6 payments in advance were the norm, but that has all changed, and it can now be thousands more.


For example - figures taken from 18/09/2023 


Volkswagen Golf Hatchback 1.5 TSI Life 5dr

  • £197.40p/m - Initial Rental: £1,776.60

Ford Mustang Mach-E Estate 198kW Select 70kWh RWD 5dr Auto

  • £479.98p/m - Initial Rental: £4,319.82

Dacia Duster Estate 1.0 TCe 90 Essential 5dr

  • £237.67p/m Initial Rental : £2,139.03

The headline monthly rentals may seem affordable; however, the advanced rentals can be a strain.


In most cases, you know when your contract or lease vehicle will be changed so you can budget and save for the advanced rental.


You never know, however, when your car will be stolen, or worse, you're involved in an accident and it is written off. It can happen at any time to anyone.


While, thankfully, your contract and lease hire gap insurance will mean you are not left paying for something you no longer have, what about the advanced rental?


For some members of the public, the thought of being able to easily access a couple of thousand pounds or more may not be anything to worry about. 


For some, however, it can be an additional financial strain. 


Contract and lease hire deposit protection can help.


Your additional contract hire deposit protection policy sits alongside your contract and lease hire GAP insurance. It will reimburse you the initial rental you originally paid up to a maximum of £3000 in case of a claim.


You now have all, if not a high proportion of, your initial rental - deposit back, the old agreement has been settled, and you are free to go and source another vehicle.


Click for a quote, enter your contract hire monthly payments and then you can choose from either no deposit protection or up to £3000; the choice is yours.