Contract Hire GAP Insurance
Many people don't realise that if their leased (Contract Hire) vehicle is written off (through accident, fire, theft or flood), after their Motor Insurance policy has paid out the then 'market value' of the vehicle (a sum of money which would normally be paid directly to the finance company), they could still be liable for anything up to the entire sum of all rentals due to the end of the original contract term.
If you're a month from the end of your contract term, this probably wouldn't phase you *too* much but, what about if you're only just one month in to your say, 3-year contract? Can you afford to pay a sum of money equal to anything up to ~35 times your monthly rental figure AND have money spare to fund a new vehicle too?
This is where Contract Hire GAP insurance steps in. If your leased vehicle is written off, this type of cover will aim to pay the difference between your motor insurance payout and the settlement figure (aka 'Early Termination Fee') of your Contract Hire agreement.
You can also add-on cover that will see that you're reimbursed up to £3,000 of any initial rental that you paid when you started your lease agreement. A helping hand we're sure, in terms of funding your next vehicle.
It's available for a vehicle that (at the time of purchasing the policy) is less than 8 years old, that you took delivery of within the last 6 months, with a P11d value of up to £150,000. Cover can be arranged for 1 to 5 years.
See more info about Contract Hire GAP Insurance.