We have talked before about the virtues of lease gap insurance for your business vehicle. As we hope you are now aware, you could be far more financially burdened than simply having to find an alternative method of transport, if your lease vehicle is written off.
Why Lease Gap Insurance?
To remind you, if your contract hire or lease vehicle is written off, then you can be left with a bill from the leasing company for the vehicle value (covered by your motor insurance) and for the outstanding rentals on the contract hire agreement. This second sum is likely to come as a shock to many, and indeed many large leasing firms no longer even offer Contract Hire Gap Insurance.
Contract Hire, or lease gap insurance used to be commonplace in contract hire monthly rentals. However, with new rules and regulations in the last few years from the FSA, this is no longer the case.
Lease Gap Insurance is not a mandatory for any contract hire agreement. Indeed, it is up to the user of the leased vehicle to ensure they are adequately covered. So if your leasing company do not offer you it, where can you buy lease gap insurance?
Buy Lease Gap Insurance
As always, your motor dealer or leasing company will offer you a lease gap insurance product if they have one. However, there are other places yo can look for this relatively inexpensive cover.
As featured in a recent Which Magazine article, the online gap insurance brokers are a grest place to look for any type of Gap, including lease gap cover. Lease Gap Insurance can be bought for up to 5 years, giving valuable protection to protect the outstanding rentals on your lease.
Remember this type of insurance is only effective in the event the contract hire vehicle is written off by your insurers. However, if you do not want to chance being one of the nearly 600,000 this happens to annually, a lease gap insurance policy may be the order of the day.