Contract Hire Plus GAP Insurance
Whether business or personal, a contract hire or lease agreement can help you easily manage your transport requirements as put simply, contract hire lets you lease a vehicle for a set time period and mileage, and for a fixed monthly cost.
It’s a convenient way to sort out your motoring – unless things go wrong. If your contract hire vehicle gets written off by accident, fire, theft or flood, putting in an insurance claim for the total loss might well leave you short of the amount your finance company will be looking for.
Depending on when the total loss occurs, a vehicle with an initial price of £20,000 might only generate a market value payout of £10,000 at the time of your claim – but in this example the bill from the contract hire finance company to settle the finance agreement might well be £18,000. Pretty shocking.
In such a situation, ALA’s Contract Hire Plus GAP Insurance will pay out the £8,000 shortfall between the market value payout and the outstanding finance bill, leaving you free and clear of your financial obligations and ready to ping in an order for another vehicle.