Do I need gap insurance?

moreofthegoodstuff

We're leasing a brand new car for x2 years. My aviva insurance will replace with a new vehicle in the first 12 months, so do I need gap insurance during this time? It's a 2yr lease so I possibly need it for the second year. Sounds like a daft question but I'm not sure if replacing the car is the same as paying any difference in finance.

I'm struggling to compare quotes as they all want you to be the registered keeper.

jlfrs01

Should you have an accident in year 2, it is not only the outstanding finance which needs to be paid back but the value of the vehicle to the leasing company as well as it is their vehicle, that's why GAP insurance may be needed. It's less important in 2nd hand cars as they've already taken the bulk of the depreciation.

Regarding the Registered Keeper question, this article may shed some light:

https://www.osv.ltd.uk/registered-keeper-lease-car/

NINJA59

Definitely for the 2nd year as you don't want to be left holding the can if it gets written off and the insurer only paying market value.

DullGreyGuy

moreofthegoodstuff said:

We're leasing a brand new car for x2 years. My aviva insurance will replace with a new vehicle in the first 12 months, so do I need gap insurance during this time? It's a 2yr lease so I possibly need it for the second year. Sounds like a daft question but I'm not sure if replacing the car is the same as paying any difference in finance.

I'm struggling to compare quotes as they all want you to be the registered keeper.

Double check on the replacement car, it often excludes lease vehicles because you are never the owner of the vehicle. Even on other methods of finance it's conditional on the finance company agreeing and they generally don't. 

Car_54

NINJA59 said:

Definitely for the 2nd year as you don't want to be left holding the can if it gets written off and the insurer only paying market value.

Maybe I'm missing something, but how would the finance company be entitled to more than the market value?

jlfrs01

Car_54 said:

Maybe I'm missing something, but how would the finance company be entitled to more than the market value?

Because any outstanding payments on the lease would also be required. I found this on the website to explain a tad more: 

https://www.moneysavingexpert.com/insurance/gap-insurance/

moreofthegoodstuff

Thanks all. I emailed Aviva but it doesn't cover leased vehicles (so I really did need gap insurance). I managed to get a policy for £90 after shopping around a bit.