What happens if I write off my leased car??

CK1223

I'm getting a lease car next month (been approved for finance, just waiting for final documentation and for the car to come out of the factory).

Just wondering if anyone knows what I'm likely to be liable for if I happen to crash the car and it's written off. I have no plans to crash the car but would just like to be prepared in case.

I'll be fully comp insured with Churchill.
It's only an 18 month lease @£61 a month. If it's just the payments I'll be liable for then I can pay that upfront no worries, but if the insurer pays less than the current market value then I will be liable to cover the difference, am I correct in thinking this?

I started ringing around GAP insurers but a few of them gave me the impression that I wouldn't need GAP insurance as it's such a small amount of money over a short contract. One of the GAP insurance companies even went as far as to say "choose the cheapest level of cover because you're not even going to need the amount it covers you for" but I still don't understand 100% what I'd be liable for.
Any ideas please? /any recommendations on good GAP insurers? Thanks guys

wgl2014

Read the terms of your lease agreement.

Edit: That reply reads a bit short! Some more info here http://www.whatcar.com/car-leasing/car-leasing-guide/gap-insurance.php

foxy-stoat

Read the Churchill policy document, you will find that you will only need GAP insurance for 6 months, if at all.

CK1223

foxy-stoat wrote: »

Read the Churchill policy document, you will find that you will only need GAP insurance for 6 months, if at all.

I've just had a look and it does have new car cover, never knew that! Can I GAP insure a car that I've already owned for a year, just to cover the remaining 6 months?

foxy-stoat

I wouldnt bother for 6 months but you can always buy it when your car is 12 months old - as the GAP insurance wouldnt pay out as your insurers will pick up the difference until its a year old.

rs65

CK1223 wrote: »

I've just had a look and it does have new car cover, never knew that! Can I GAP insure a car that I've already owned for a year, just to cover the remaining 6 months?

Does it also say you must be the first registered keeper?

Will you be the registered keeper?

daydotz

If you unfortunately write it off the insurance will pay the lease company any shortfall you will be liable for if the lease company & your insurance don't agree on a settlement

You won't get a replacement & the lease will terminated