Contract Hire Gap Insurance is widely available in the UK, and can be used to protect your liabilities on lease agreements. Find out why you may need contract hire gap insurance in the article below.
In the world of business, vehicles are often secured by contract hire agreements. This form of ‘rental’ can be ideal for the cashflow of a business, and is widely used in the UK today. However, have you ever thought about your obligations in terms of insuring the vehicle? You may assume that as you will never own the vehicle, that if it is written off in an accident, or is stolen, all you need to cover is the market value at the time. So therefore Fully Comprehensive motor insurance is sufficient then?
Well actually you may be in for a nasty suprise. Many contract hire agreements require some, or even all of the outstanding rental payments to be made, when a total loss occurs, as well as the value of the vehicle. So if you are 12 months into a 3 year agreement, and you have a monthly rental of £200 to pay, you could be faced with a bill of £4,800 to pay for the remaining 2 years.
Not a pleasant situation to be in. However, help maybe at hand!
In the past, contract hire gap insurance has often been included in contract hire agreements automatically. However, today the requirement is that you are simply told about it, and the decision on contract hire gap insurance is ultimately yours.
A Finance Gap Insurance or contract hire gap insurance policy from EasyGap.co.uk is designed to cover any shortfall between a vehicles value and the outstanding finance agreement settlement. This includes outstanding rentals for Contract Hire agreements.
The advantage of sourcing this cover through EasyGap.co.uk is that we do not penalise you for a ‘specialist’ cover for contract hire, it is a form of finance agreement after all. So you are able to take advantage of the cheapest Contract Hire Gap Insurance premiums in the UK.
For the example above, you could have up to £5,000 worth of cover for 3 years for as little as £69!
Remember all Contract Hire Gap Insurance policies are underwritten by an ‘A’ rated insurer, AM Trust Europe Ltd, and are backed by the Financial Services Compensation Scheme.
For more on Contract Hire Gap Insurance, take a look at our dedicated page, or get a quote via the quote button above.
Once again, thanks to easygap.co.uk for allowing us to republish this article
We hope it helps you understand Contract Hire Gap Insurance a little better!
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