Why GAP Insurance Is Important For A Lease Car



GAP insurance covers the difference between what your main car insurer pays out and the remaining finance balance owed for your lease car, should it be written off or stolen. This means you aren’t forced to pay a lump sum to the leasing provider if the unexpected happens.


Need peace of mind and want to protect your lease car? We’ve partnered with the UK’s number one GAP insurance provider, DirectGap, to offer you cover from 1-5 years on Hire Purhcase, Personal Contract Purchase and Personal Contract Hire (leasing) agreements.


Get your free GAP insurance quote


3 reasons to get GAP insurance when leasing


1. It could save you thousands of pounds


When you lease a car, the vehicle is owned by the finance company. If your lease car is declared a Total Loss, without a GAP insurance policy you’d be responsible for paying the remaining finance on the car out of your own pocket.

Because main insurers will only pay out the value of your lease car at the time of the claim, you’ll face a financial shortfall to make up the difference.

However, if you purchase a GAP policy for your car, the provider of this cover will settle any outstanding balance owed. So, you won’t have to worry about dipping into your savings or coming up with the money another way to settle your lease agreement.


2. Complete peace of mind throughout your lease agreement


GAP insurance takes away any nerve-wracking feelings you may have had about driving a car that’s owned by someone else (i.e. lease cars are owned by the finance company).

If the unexpected were to happen and your lease car is declared a Total Loss, you won’t be faced with the financial headache of having to pay off your agreement for it. As such you won’t have it in the back of your mind that you should fear driving the vehicle.


3. Affordable cover


Our partner Direct Gap has the best value offers for GAP insurance policies for finance and contract hire (AKA ‘lease’) cars.

Cover is available from £69, but prices will depend on the manufacturer and model of your car, as well as the term of your agreement.

Want to get an instant quote for GAP insurance for your lease car? Whether you have the vehicle yet or not, Direct Gap’s flexible terms mean you can defer the policy start date and pay monthly or through a one-off payment.


Get your free GAP insurance quote now


Case studies*: times where GAP cover saved people time and money


*Case studies are real accounts of Direct Gap customers who have taken out a Finance/Lease/Contract Hire Gap Insurance policy.


Finance Gap case study #1 – Mr. H


In the case of Mr. H there was, ultimately, no claim to be made due to the payout by the

motor insurer negotiated by Direct Gap.

Mr. H’s vehicle was stolen from his driveway and the vehicle was declared a total loss as it was not recovered after 10 days.

The settlement figure due to his finance company was £30,200. His motor insurance had agreed to cover this amount; however, Mr H. had put a £3,500 deposit down on the vehicle just weeks ago. This would mean he is out of pocket by £3,500.

Luckily Mr. H had taken Gap Insurance with Deposit Protection with Direct Gap, this meant his deposit was covered up to £2,000. Mr. H had also followed the guidelines and contacted Direct Gap before accepting settlement from his motor insurer. This allowed Direct Gap to negotiate the settlement figure on their behalf and they were able to secure a fairer valuation of the vehicle of £34,000 – this more than covered the outstanding amount of finance and his original £3,500 deposit.

As Direct Gap had negotiated a fairer settlement figure from the motor insurer no Gap

Insurance claim was paid out however the customer still benefited!

Total Paid: £0

Customer Benefit: £3,800


Finance Gap case study #2 – Dr. N


In the case of Dr. N, she benefited from the deposit protection add-on with her Gap Insurance.

A third-party collided with Dr. N’s vehicle while it was parked outside her house. Both

vehicles were deemed a Total Loss. The total owing to her finance company at point of

total loss was £19,500. Her motor insurance had provided a valuation of £18,000 for the


Dr. N had contacted Direct Gap before accepting settlement from his motor insurer. This

allowed Direct Gap to increase the settlement figure to the full £19,500 required to settle

her finance.

However, Dr N. had also placed a deposit of £2,000 at the start of the contract. As she’d

taken Deposit Protection as part of her Gap Insurance she received her full £2,000 deposit back by payout from Direct Gap.

Total Paid: £2,000

Customer Benefit: £3,500


How GAP insurance works


As we mentioned earlier, GAP insurance pays the difference between your insurer’s payout at the time it’s declared a Total Loss and the remaining lease payments for the vehicle.

Unlike a standard comprehensive car insurance policy, you won’t be required by law to take out GAP insurance for a car that you lease. Nevertheless, there are many benefits of GAP cover that you can read about in our handy guide.

As a leading provider of GAP insurance, our partner Direct Gap offers several advantages with its policies, which you can benefit from when you lease a car through Moneyshake. This includes:

  • Pays finance and settlement charges
  • Protects your deposit up to £2,000*
  • 30-day money back guarantee
  • Covers main insurance policy excess up to £250
  • Cover from 1-5 years
  • All named drivers on your insurance policy are covered
  • Unlimited claim limits on vehicles up to £50k

*Deposit Protection is an add-on product that you can choose to include for £35 at stages of the purchase process.


Looking to protect your car with GAP insurance?


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