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GAP

What is GAP Insurance?

This policy is designed to protect you against unexpected losses that may be payable following the "Write off" of your vehicle due to Fire, Accident or Theft. (A write off means that in the motor insurers view the vehicle is damaged beyond economical repair or the vehicle has been stolen and not recovered.)

In the event of a "Write off" your comprehensive motor insurance policy will only pay the market value of your vehicle at the time of loss. If these circumstances occur the contract hire company will require settlement of the agreement and the money offered by your motor insurer may not be enough to clear the termination charge. Lease GAP Insurance will pay for the shortfall.

Who is eligible for cover?

    You will be eligible for Lease GAP Insurance provided:
  • The purchase price of your vehicle does not exceed £100,000.
  • Your monthly Contract Hire repayment amount is not more than £1000 per month excluding VAT.
  • The vehicle is under 8 years of age and registered in the United Kingdom.
  • Your vehicle is covered by a UK comprehensive motor insurance policy.
  • Your vehicle is not an Emergency vehicle, Taxi, Bus, Truck or Heavy Goods Vehicle.
  • Your vehicle does not exceed 3.5 tonnes.
  • Your vehicle is on a Personal/Business Contract Hire, Lease Hire or Contract Hire Agreement.
  • Your vehicle is shown in Glass's Guide.

Benefits:

  • In the event of an incident due to Fire, Accident or Theft of the vehicle, this policy will pay the difference between the comprehensive motor insurance settlement figure and the early termination costs or unexpired months, whichever is the lesser. The Early Termination costs relate to the net balance payable to the Lease Company at the date of the Total Loss less any rebates but excluding arrears or any balloon payments which exceeds that noted in Glass's Guide to future residual values at the inception date. The Early Termination Cost will, where applicable, exclude all maintenance, insurance premiums, road tax, excess mileage charges, dealer fitted accessories and recoverable VAT.
  • In the event of a claim the maximum the policy will pay will be shown in your schedule.

PPI

What is Purchase Price Protection?

This policy protects the financial shortfall you may face if your vehicle is the subject of an insurance "Write off" due to Fire, Accident or Theft. (A write off means that in the motor insurers view the vehicle is damaged beyond economical repair; or the vehicle has been stolen and not recovered.)

Your comprehensive motor insurance policy will only pay the market value of your vehicle at the time of the "Write off". Because of the way vehicles depreciate this amount is likely to be less than what you originally paid for the vehicle, resulting in a financial shortfall. Purchase Price Protection will protect this shortfall by paying back to you the difference between what your comprehensive motor insurance will pay and the original invoice price you paid for your vehicle up to the agreed capped benefit selected.

Who is eligible for cover?

    You will be eligible for Purchase Price Protection provided:
  • The purchase price of your vehicle does not exceed £100,000.
  • The vehicle is under 8 years of age and is registered in the United Kingdom. Second hand cars are accepted.
  • Your vehicle is covered by a UK comprehensive motor insurance policy.
  • Your vehicle is not an emergency vehicle, taxi, bus, truck, heavy goods vehicle, motorcycle, invalid carrier.
  • Your vehicle does not exceed 3.5TGVW.
  • Your vehicle is not on Contract Hire or Leased.
  • Your vehicle has been purchased from an authorised UK distributor.

Benefits:

  • In the event of a "write off" claim to the insured vehicle, the policy will pay the difference between the comprehensive motor insurance settlement figure and the purchase price of your vehicle, including factory fitted accessories and including any discount given, but excluding warranty charges, dealer fitted accessories, insurance premiums and road fund licence, or a maximum of 110% of the market value of your vehicle as shown in Glass's Guide Retail Value, at the time of purchase, whichever is the lesser.
  • In the event of a claim the maximum the policy will pay will depend on the level of cover selected.