The leasing pages on What Car? are monitored and controlled by What Car? Leasing a 'Vertu Motors Third Limited Company'. All of the deals within these pages are advertised by franchised dealers from around the UK.

Find a carMenu

Click here to search for a vehicle.

 
 
 
 

GAP Insurance Protecting Your Lease Car

GAP Information for LeasingWhat does GAP Insurance Cover?

GAP insurance can provide valuable protection during the early years of your car's lease. Current statistics indicate the risk of your vehicle being stolen or written off is now greater then ever before.

The Statistics

Statistically, in the UK, new cars depreciate by 40% to 60% over the first 3 years. (Based on an averaged sample taken from the Whatcar depreciation index, June 2007).

Around 375,000 vehicles are stolen every year, which is equivalent to one every two minutes. There are over 230,000 road traffic accidents that may result in an insurance total loss ‘write-off’

What is Gap insurance?

If a loss occurs, GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your lease. Gap Insurance protects your vehicle lease.

If your vehicle has been wrote off by accident, theft or fire your insurance company typically pays the actual cash value. That may be less than its actual retail value. It is often considerably less than the actual amount you still owe for a lease payoff.

The amount between your insurance deductible and the loss from this financial shortfall is the “gap”
you can be left owing.

Is Gap insurance required?

No. Most lending companies who finance cars do require full coverage insurance but not Gap insurance, so the owner would have to pay the depreciation difference if they had a total loss of their vehicle and chose not to add Gap insurance to their policy.

Gap insurance will insure you for the difference between what you would owe on a vehicle and what an insurance company says its worth.

How does GAP work?

Please see an example of how GAP works. Figures are used as a guide only:

How GAP Insurance works


How do I proceed with GAP?

Most dealerships can supply GAP insurance as an extra to your lease. Ask for a quote and your dealership contact will be happy to assist you. GAP is usually a single payment and will cover you for the term of your lease.


What position would you be in if your motor vehicle is deemed a total loss?