Leasing - GAP?

Ivrytwr3

Hi all,

I am looking at my first lease car - i have found a good deal, but internet searching advises obtaining GAP insurance.

Can anyone advise on whether i need this and any decent providers?

neilmcl

Ivrytwr3 wrote: »

Hi all,

I am looking at my first lease car - i have found a good deal, but internet searching advises obtaining GAP insurance.

Can anyone advise on whether i need this and any decent providers?

Yes, definitely something to consider especially as it's not that expensive, otherwise you may be liable for the remaining rental payments in the event of a total loss. Look specifically for products tailored to leasing from the usual suspects, eg, ALA, Car2Cover etc.

foxy-stoat

You only need the GAP insurance if you have a total loss - if it is a brand newly registered car then GAP will be handy if its totaled a year after you started leasing it - if it happened within the first 12 months then your car insurance should get you a new vehicle - you just need to check the wording.

If its older than 12 months then GAP is needed from day 1.

I cannot advise on providers - you can look on the comparison websites.

DoaM

Does this depend on if insurance is covered within the lease cost? (Is it ever? I'm wondering based on recent TV adverts for companies who'll lease cars for reduced periods - e.g. monthly; they intimate that the monthly cost is all-inclusive).

Genuine question - I have a lease car, but it's a company car so we have corporate insurance, thus this issue (GAP) doesn't affect me.

Penelopa.Pitstop

First, we need to know if it's PCP or PCH, because people use term lease very loosly here. If it's PCH and driver is not registered owner, insurance will exclude it from 12 month new car replacement. And another matter: only some companies offer this in policy.

Also if it's PCH with larger initial payment, initial payment can be covered as well by GAP.

If it's PCP there are different GAP options available: return to invoice, return to value, finance only.