Gap insurance

Are you wondering what Gap insurance is - and whether you need it or not when leasing a car or van?

Gap insurance will protect you in the event of a ‘total loss’ situation.  If your vehicle is ever written off or stolen (and not recovered) by your insurance company, there is a risk that you will owe more to the finance company than the amount that the insurance company will actually pay out. 

This is because insurance companies will generally only offer you ‘market value’ for your vehicle - and that may not be enough to pay the finance company’s settlement figure. 

This could leave you with a ‘gap’ to bridge – which you would be personally responsible for.  Gap insurance will protect you in this situation, so you won’t have to make up the shortfall and be out of pocket.    

Gap insurance is an optional insurance, which supplements your standard motor insurance policy.  For a more detailed explanation, we’d recommend reading this article on whether you need Gap insurance when leasing a car.

Contact Vesource

If you would like more information about Gap insurance, or would like a quote - please contact our Gap insurance expert, Jane Ramsey, on 0845 052 5268 or send us an enquiry