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Scratch & Dent Insurance KeyfactsLease Hire Gap Insurance |  

Scratch & Dent Insurance Terms and Conditions
How does Lease Hire Gap Insurance work and do you need it?

Updated 20th November 2018


This form of Gap Insurance is designed to protect any outstanding liability should the vehicle be declared a total loss (i.e stolen or in an accident etc.). Simply put, should your lease vehicle be declared a total loss, this policy will simply clear what you owe to the lease company and you walk away with no liability. This is a specialist type of GAP designed specifically for a lease or contract hire vehicle whereby at the end of the agreement, you have no option to keep the vehicle.


Lease Hire Gap Insurance available at with Deposit Protection

Protect upto £2,000 of your deposit/initial rental


At, you have the option of protecting upto £2,000 of initial rental/deposit you may have put down on the vehicle. This is limited to a maximum of 6 upfront rentals and to a maximum of £2,000. Therefore, if the worst did happen and your vehicle was declared a total loss, all your outstanding liability is cleared by the Lease Hire Gap Insurance and your deposit upto the value of £2000 is returned to you. 

Do you need Lease Hire Gap Insurance?


If you have taken delivery of a new lease vehicle or expect to in the near future, do you really need Gap Insurance? Surely, the lease company will have done the maths so that in the event of a total loss, everyone walks away happy? Unfortunately not. 


In the event of a total loss, your lease company will issue you with an outstanding settlement figure, which is made up of a number of different things, such as any outstanding rentals (i.e any monthly payments you have left) or any difference in valuations etc. Different lease companies will expect different amounts, some may expect the balance paid within 30 days and others may be a little more lenient. Long and short of it is that yes, unless you want to be paying for a vehicle you no longer have, Lease Hire Gap Insurance is a good idea. 


This form of Gap Insurance is designed for those who have taken a vehicle on a form of lease/contract hire where you have no option to own the vehicle at the end.

Can you buy Lease Hire Gap Insurance?


If you have purchased a vehicle on a form of hire agreement such as contract hire or lease hire and you have no option to keep the vehicle at the end of the agreement and instead hand the vehicle back, this policy is a specialist type for you.

You are eligible to purchase this form of Gap Insurance if you ...

  • Purchased the vehicle on a form of Lease or Contract Hire (with no option to own)
  • Purchased the vehicle from a VAT Registered Garage, Main Dealership, Internet Broker, Contract Hire/Lease Hire Company
  • Purchased the vehicle within the last 180 days
  • Purchased a vehicle that has less than 80,000 miles on the clock
  • Purchased a vehicle that is a Car or a Van (This policy is not available for a Motorhome, Motorbike or Scooter)
  • You are not using the vehicle for any business usage, i.e Taxi, Hire and Reward or Delivery

Get a Gap Insurance Quotation

Lease Hire Gap Insurance Features |



Different brands and different policies will have different terms and conditions attached. At, we are very much proud of the features we offer as standard and consider the policy and it's ability to be amongst the market leading in the UK. 



£750 Excess Contribution - In the event of you having to make a claim, there is no excess for you to pay on this policy, instead we contribute the first £750 towards your motor insurance excess.





£10,000 Claim Limit - Rather than you having to decide what is going to be the best amount for you, we have worked closely with the underwriting insurer to work out the very maximum amount you would ever need. This is very much dependent on your risk and your monthly rental amount. If you are unsure, simply contact the customer service team on the telephone numbers above. 


Lease Hire Gap Insurance Example

Lease Hire Gap Insurance ExampleOriginal P11D Value: £18,000

Deposit/Initial Rental: £1,500

Outstanding amount on Lease agreement: £15,000

Motor Insurance Settlement: £10,000

Shortfall: (i.e amount left over on finance) £5,000

Shortfall Lease Hire Gap Insurance Settlement: £6,500

£1500 Deposit also protected