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Lease/Contract Hire Gap Insurance

When you get a car through a lease or contract hire agreement, there are a lot of additional costs involved… and if it’s later written off or stolen, you will be liable for the outstanding value of the agreement, including all of these additional costs.

If this happens, your motor insurer will settle your claim at the market value of your vehicle at the time of loss. This can leave you with a shortfall of several thousand pounds, and you may well wonder how you’ll ever pay for all this… never mind having to find the money to replace your car.

Gap Insurance For Lease Cars

When you take out Click4Gap Lease/Contract Hire Gap Insurance, we’ll take all this worry away by making sure you won’t be left unnecessarily out of pocket if this should ever happen.

Our Gap insurance for lease cars / contract hire means that you’ll be covered for the difference between the market value at the time of the loss, and the outstanding amount on your agreement, subject to the policy terms. Not only this, but you can also expect your claim to be paid out directly to you within a matter of days.

You’ll be comfortable knowing your Lease/Contract Hire Gap Insurance cover also guarantees:

  • Up to £2,500 towards your first three monthly rental payments
  • Cover from one to five years duration
  • 30-day, no risk, money-back guarantee
  • Up to £250 towards motor insurance excess
  • Up to £1,500 in dealer-fitted accessories
  • Covers any driver named at no extra cost
  • Cover if your vehicle is stolen with the keys

You’ll find full details in the policy documents below, please read them carefully:

Lease/Contract Hire Gap Insurance Policy Wording

Lease/Contract Hire Gap Insurance Product Information Document

If you’d like a copy of your existing policy wording, please email us at or call us weekdays on 0208 819 3424, during office hours.

Why Click4Gap for your gap cover?

How we treat you

We’re committed to the principals of Treating our Customers Fairly. Whether it’s in the design of our products, or by putting our customers first when we deliver service and manage claims, we make it our goal to ensure that we provide you with clear and transparent information, so that you’re empowered to make decisions based on what is right for your situation. You can see here, how our customers appreciate that we always go the extra mile for them.

How we help you

Our friendly, helpful UK-based Customer Service team are on hand to answer your questions, during office hours. There are also real people ready and waiting to help you on our website through our live chat function (see the link at the bottom right of the web page). Their focus will always be entirely on you, so that they understand your needs and can make sure they help you to find the right solution for your circumstances.

How you can have confidence in our standards

You can always be assured that we hold ourselves to the highest standards through being regulated and authorised by the Financial Conduct Authority. For us to be registered with the FCA, we first have to prove that we meet their very stringent requirements, and then we must continue to follow the rules and standards they put in place, so that we maintain our registration.

How we give you stress-free claims management:

When you take out your policy with us, you want to know that in the event you ever have to claim, you can rest assured we have you covered. That’s why we’ve appointed specialist claims management partners, AutoProtect (MBI) Ltd. Their qualified and experienced technical claims team will manage your claim effectively and efficiently, keeping the process as stress-free as possible, and settle your claim quickly so you can move on with your life.

But don’t just take our word for it. See what our customers have to say.

How Gap cover works for you

Market value at loss,
covered by your
motor insurer

Possible shortfall amount,
for your account

If you leased your car with a purchase price of £16,500, and a year or so later when it’s written off the outstanding finance is £17,000. Your insurer will pay out the market value, which could be as little as £11,200, leaving you with a shortfall of as much as £5,800. If you have Gap Insurance, this shortfall would be covered in total, subject to the policy terms, plus an additional £250 towards your motor insurance excess.


What is Lease/Contract Hire Gap Insurance?

If you got your car through a lease or contract hire agreement, our Lease/Contract Hire Gap Insurance was designed with you mind. It’ll protect you against the impact of depreciation and high settlement costs, if your car’s stolen or damaged beyond repair, and your motor insurer declares it a total loss.

Knowing your car can depreciate by up to 60% after 3 years, this could mean a substantial shortfall, which you would have to make up in order to get another, similar car.

If this happens, your motor insurer will typically only pay out the market value of the car on the date it was declared a total loss. There will be no consideration of interest or other charges that will be levied on your account, nor will depreciation enter into their pay-out calculation.

But here’s good news! A Click4Gap Gap Insurance policy designed for leased or contract hired cars will cover this shortfall, paying the difference between the market value and the outstanding balance on your agreement.

Plus, you’ll get cover for up to £250 motor insurance excess, and up to £1,500 worth of dealer-fitted accessories.

How does Lease/Contract Hire Gap Insurance work?

Let’s take an example. If you leased your car with a purchase value of £16,500, and a year or so later when it’s written off the outstanding finance due is £17,000. Your insurer will pay out the market value, which could be as little as £11,200, leaving you with a shortfall of up to £5,800. Without gap cover, you would need to fund the repayment of this amount yourself, as well as find a way to replace your vehicle.

If you have Gap Insurance however, this shortfall would be covered, subject to the policy terms, plus you’ll get an additional £250 towards your motor insurance excess.

Is Gap Insurance worth it?

Gap Insurance provides the protection that your motor insurer doesn’t. If you car is declared a total loss by your insurer, they’ll settle at an amount that reflects its current market value at the time of loss. This could well be many thousands of pounds short of the final settlement balance on your lease or contract hire agreement.

Based on the fact that your car could typically depreciate by as much as 60% in 3 years, which could also have a significant impact on your financial situation, and could see the replacement of your car with another similar vehicle as nothing more than a pipedream.

Click4Gap Lease/Contract Hire Gap Insurance will pay out this difference, putting you back in the same position as when you first signed your agreement… a small price to pay.

Do I need Lease/Contract Hire Gap Insurance?

Gap cover isn’t required by law like motor insurance, but in the event your car is stolen or written off, it could be a financial lifesaver. Without a Lease/Contract Hire Gap policy to pay out the difference between the market value your motor insurer pays out, and the outstanding balance on your finance account, you’d be left with a bill for what could amount to thousands.

Check the benefits in the policy wording below and see if this is cover you can afford to be without.

Lease/Contract Hire Gap Insurance Policy Wording

Can I get Gap Insurance if I bought my car with a finance agreement?

Combined Return to Invoice Gap insurance from Click4Gap is especially designed to cover you if you financed your car, by paying out the shortfall between what you paid for your car, and the outstanding balance on your finance account at the time of loss. With interest and other charges, this could run into thousands, and save you from the worry of having to pay this off yourself.

Can I get Gap Insurance if I paid cash for my car?

Combined Return to Invoice Gap insurance will protect you if you paid cash for your car, by paying your valid claim directly to you, covering the gap between the motor insurer pay-out and the purchase value of your car. This would leave you in the same position you were in before you bought the car, and able to look forward to finding a suitable replacement.

Do I need Gap cover if I have motor insurance?

Certainly your motor insurance will cover the market value of your car at the time it was stolen or written off, but this could leave you with a considerable shortfall as a result of depreciation, as well as early settlement, interest and other charges. This is where Gap cover comes in. Your Lease/Contract Hire Gap policy will make up this difference paid directly to you. This is a financial decision you may well want to consider.

What is total loss?

Your car is likely to be declared a total loss by your motor insurer if any of these events occurs:

  • If your car is damaged in an accident, fire or flood, and the cost to repair it is close to, or more than its market value at the time of loss;
  • Or, in the above instance, if your motor insurer decides that it can’t be safely repaired;
  • Or if it’s stolen and not recovered.

How long after I purchase my car can I still get Gap cover?

You can get Gap Insurance from Click4Gap up to 90 days after you lease or contract hire your car, and there’s no age or mileage limit, after your policy start date.

Whose name should be on the policy?

A Lease/Contract Hire Gap Insurance policy should be in the same name as the lease or contract hire agreement, whichever applies.

How do I pay for my Gap Insurance cover?

To make this as convenient for you as possible, we provide two ways in which you can pay for your cover:

  • You can make one, single payment through your credit or debit card, and enjoy cover that will start immediately after your payment is received.
  • You can choose to pay with our convenient monthly payment plan. This means you’ll pay a 20% deposit in month one and then nine, equal monthly payments for the balance. This is not a credit agreement, requires no credit checks, and your cover will start as soon as your deposit payment is received.

How do I claim on my Gap Insurance policy?

Our specialist claims managers, AutoProtect (MBI) Ltd., have been appointed to provide you with an efficient and effective claim experience.

To register your claim, please follow the process that works best for you:


  • Download the AutoProtect App on your smartphone by searching “AutoProtect GAP”.


  • Text the word APAPP to 88802 and you’ll receive a download link via SMS (texts are charged at your standard network rate).

For more information, please click here.

Does Lease/Contract Hire Gap Insurance cover me if I’m at fault?

As long as you have motor insurance cover and your insurer declares your car a total loss, you will be covered by your Gap Insurance irrespective of whether you are at fault or not.

See the terms and conditions for full details.

Lease/Contract Hire Gap Insurance Policy Wording

Does my Gap policy pay for my motor insurance excess?

Your Click4Gap gap Insurance will cover up to £250 of your motor insurer excess.

Will I be covered if my car is stolen with the keys?

If the keys are taken from a secure place such as inside your home or office, the total loss will still be covered. If the keys are left unsupervised in your car however, then the vehicle would not be a total loss under your motor insurance policy and your Gap cover would not apply.

When would my Gap cover not pay a claim?

Click4Gap pays all valid claims however, there are a few circumstances in which a claim will not be considered valid:

  • If an uninsured person was allowed to drive the car
  • The driver was under the influence of non-prescription drugs or alcohol
  • The car was being used for illegal activity
  • Instances of fraud or wilful negligence

Your policy document details the full list of exclusions. Lease/Contract Hire Gap Insurance Policy Wording

What is the vehicle purchase value?

This is the price you paid for your car, including all the factory-fitted accessories, and after any discount and deposit paid, but excluding any registration fee, fuel, insurance premiums, service plan, delivery charges, paintwork and upholstery protection kit, insurance and warranty premiums you may have included, any finance arrears and associated costs, and any negative equity.

Can I cancel my Lease/Contract Hire Gap cover?

In the event you decide this cover isn’t for you, you can cancel with a full premium refund during the first 30 days, so long as you haven’t made a claim, or don’t intend making one.

If you decide to cancel after the 30 days, you will be eligible for a pro-rata refund, under the same conditions, plus a £35 administration fee.

Who is the insurer of this policy?

Red Sands Insurance Company (Europe) Limited, who are registered in Gibraltar (87598) and are licenced by the Gibraltar Financial Services Commission are the insurers of your policy.