What is GAP Insurance?
Guaranteed Asset Protection (GAP) insurance is an optional insurance product sold when you buy or lease a new vehicle. It is designed to protect you against financial loss if your car is declared a total loss by your insurance company following a fire, theft or accident.
If your vehicle is declared a total loss there is a risk that your motor insurance company will not pay the full amount owed on the vehicle necessary to settle the lease contract.
If after 3 years the vehicle was declared a total loss:
In this example a GAP insurance policy would pay the difference between your insurance companies valuation and the lease companies valuation up to a maximum value dependent on the amount of cover taken out. Some insurance companies also pay back the customers up to £2000 in advance rentals (Initial payment paid when the lease was taken out).
Benefits of GAP Insurance
Protects you from financial detriment if your vehicle is declared a total loss
You can get a new lease and be back on the road
Some insurance companies offer part of the initial payment back to customer but this depends on the type of policy taken
Any warranty charges, insurance premiums, road fund license and dealer fitted extras and accessories
A vehicle written off whilst being driven illegally under the influence of drugs or alcohol
Vehicles not insured under a comprehensive UK motor insurance policy throughout the term of cover
If he vehicle is stolen buy any person who access to the keys
If the vehicle has been modified in any way from the manufacturer’s specification
What is the cost of GAP Insurance
Central (UK) Vehicle Leasing offer a Hire an Lease GAP insurance from as little as £199 for up to £15,000 worth of cover. You can make a one off payment or make 10 monthly direct debit installments.
Purchase GAP Insurance
Once we have a registration number and delivery date we introduce you to a 3rd party, you will receive a unique invite via email. Simply activate your welcome email, set a password, that’s it, you’re a member and have access to GAP insurance. It’s an optional product for peace of mind.