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Contract Hire Gap Insurance |


What is Contract Hire Gap Insurance & How does it work?


Contract Hire Gap Insurance is a form of protection that runs alongside your own motor insurance company and ensures that if your vehicle is written off, that you can walk away with no further financial liability. Simply put, it will pay the difference between your own motor insurance settlement and the amount outstanding on the contract hire agreement.


Contract Hire or Lease Hire, what is the difference? They are pretty much the same thing, some agreements will be titled as a lease hire and others as a contract hire. The most important thing with the Gap Insurance is whether or not, you have the option to keep the vehicle as part of that same agreement. If the answer is no, this would be a typical lease or contract hire agreement.


There is a lot of confusion surrounding this form of protection on the internet and even with some dealerships. Some providers may tell you that if the vehicle is declared a total loss, you need to protect the invoice price or P11D value, however, this is not the case. In the event of a total loss, your contract hire company will ask for any outstanding rentals and difference between the valuations, not the invoice price. They may call it a settlement, they may call it forward and even back rentals but they are all exactly the same thing. It is a financial amount that you are legally responsible for, over and above your vehicle market value on the day it was written off.


Please remember that your contract hire/lease company will have based your contract hire rentals not only on how much you where paying each month but also how much they thought they could dispose of your vehicle for. In brief, this means that they will have a financial amount that they will expect to be able to get back for your vehicle in total. If your vehicle is written off then yes, while your own motor insurance company will still pay your contract hire company the market value, the difference between the two amounts is your responsibility. Unless you have a form of Contract Hire Gap Insurance.

£2,000 Deposit Protection Feature


A new feature added to the Contract Hire Gap Insurance policy is the ability to protect upto 6 upfront rentals/deposit to a maximum value of £2,000. This means that on top of the standard performing policy, your initial rental upto the value of £2,000 is returned to you. Therefore, you now have the ability to walk away with no outstanding financial liability and your initial rental/deposit is back with you, to do with as you see fit. When obtaining a quotation and clicking through to purchase your policy, simply select the £2,000 Deposit Protection to add the extra ability to your currently policy terms.

Contract Hire Gap Insurance Example - With Deposit Protection

Contract Hire Gap Insurance Example | P11D Vehicle Value: £25,000

Deposit/Initial Rental: £1,500

Amount outstanding on the Contract Hire Agreement: £20,000

Motor Insurance Settlement Figure: £17,000

Shortfall Contract Hire Gap Insurance Settlement: £4,500

(£1,500 Deposit included within settlement)

Shortfall Gap Insurance + Insurance Settlement = £21,500

All outstanding finance is cleared and you walk away with no liability and your deposit is back with you.

Contract Hire Gap Insurance Policy Features


At Shortfall we have worked extremely hard to ensure that when you purchase a Shortfall contract hire gap insurance policy, that you are purchasing some of the best, if not the best levels of cover that are available in the UK today. 


£750 Excess Contribution - With Shortfall Gap Insurance, there is no excess to pay, instead we contribute the first £750 towards your own motor insurance excess.


Fully Transferable - Although not likely with a contract hire vehicle, if you change your vehicle early and the risk hasn't changed, you can transfer the policy completely free of charge.


FCA Regulated & FSCS Backed - We are regulated by the Financial Conduct Authority to provide and sell policies, the policies themselves are backed by the Financial Services Compensation Scheme.


UK Based - Whether you call to make a claim or to make any policy amendments, all corresponding offices are based in the UK. 


Never Any Administration Fees - We never charge any administration fees, whether that be a change of address or registration change. 


'A' Rated Underwriting Insurer - Our underwriter, Mapfre | Abraxas have been financially 'A' Rated. 


£2000 Deposit Protection - If selected, in the event of a total loss, we return your initial rental/deposit back to you. 


30 Day Cooling Off - You have a full 30 day cooling off period, within which if you cancel your policy you can obtain a full refund.


Pro Rata Refund - Circumstances are always changing, which is why we give you the option of cancelling outside of the 30 day cooling off and obtaining a pro rata refund which is less a cancellation fee.  


If you would like to find out a little more about Contract Hire Gap Insurance at, please click to see the full terms and conditions or the policy keyfacts. Alternatively, if you have any more questions, why not try our Frequently Asked Questions Help Centre or contact a member of our award winning customer service team on 0800 195 4926 | 0151 647 7556, any member of the team will be more than happy to assist. 


Contract Hire Gap Insurance Policy Terms and Conditions Contract Hire Gap Insurance Policy Keyfacts

Contract Hire Gap Insurance | Why are we so inexpensive?


There are two factual reasons and one which we think is unique to us as to why your local dealership or contract hire company will never as be competitively priced as our quote and they have absolutely nothing to do with levels of cover, backup, support, customer service or most importantly claims handling.


Instead if you buy Contract Hire Gap Insurance directly from the business or organisation that you are buying your vehicle from, they are legally bound to charge you insurance premium tax (almost like VAT but for insurance policies) at 20%. If you buy independently, this is traditionally a lot lower.


Economies of scale. Instead of buying just perhaps one or two vehicles if you were instead buying one hundred thousand you would expect the same if not better vehicle but at a much lower price. The same applies to Gap Insurance, because of the business we provide we can use our buying power to negotiate much better prices.


The third reason we believe is unique to us in that we don't pay a commission to any of our team. No-one has any financial incentive in arranging a policy for you. Instead any bonuses paid are based on rates of customer service and therefore when you speak to a member of the team its imperative that you finish the call happy with the outcome.


If you now combine lower insurance premium tax, better supplier rates and no commission, it is easy to see why our prices can be up to 85% less than other Gap Insurance suppliers and yet at no compromise in how your policy will perform. In fact, we are very proud of the features integrated in the policy with some features not being available anywhere else on the market. 

Why Choose

Contract Hire Gap Insurance at has been featured within the Which? consumer magazine review into Gap Insurance since 2013. The review has been designed to inform customers of the options you have when purchasing Gap Insurance. You don't have to purchase your protection from the dealership for high prices, instead you can choose to purchase your product independently and benefit from a better price and a host of extra comprehensive features.


The underwriting insurer, Mapfre | Abraxas are amongst the industry leaders when it comes to Gap Insurance. If you have purchased Gap Insurance previously from a dealership or main manufacturer, it is highly likely that your policy may have been underwritten by Mapfre themselves. In fact, they currently underwrite a large portion of UK main dealer groups. For extra peace of mind, Mapfre have been financially categorised as 'A' Rated which is the highest rating you can obtain when it comes to financial security. 


As well as being 'A' Rated, the policies themselves are backed by the Financial Services Compensation Scheme in the UK. This means that in the very unlikely event of the financial status of the underwriting insurer being compromised, your policy is protected by the Government backed scheme. have an average rating being above 4.8 out of 5 based on genuine customer reviews processed after being in contact. The testimonials are left after numerous stages, some after purchasing a policy, making a policy amendment or even after making a claim. Testimonials have been independently verified by Feefo. 


Independently 5 Star Rated Policy Features

A number of different features of Gap Insurance policies have been highlighted as something to look out for when buying Gap Insurance. At we are proud to confirm that we include a number of 5 Star Rated Features as standard. Within our Contract Hire Gap Insurance policy, you will find the £750 Excess Contribution, the ability to transfer and the fact that 100% of factory fitted options are covered as standard. 


Best Price Guarantee

We have a specialist pricing team what will price check the Gap Insurance market in the UK on a daily basis to ensure that the price you see is the best price you will find. We will also take into consideration any discount/voucher codes provided by any other provider to again ensure that if they are applied, the price you see at is the best price you will find. We believe in providing the best price, first time and every time, with no need to shop around and find discount codes. That said, in the unlikely event of you finding a better priced equivalent policy, simply let us know and we will beat it.