GAP Insurance for Contract Hire
GAP insurance, as all seasoned drivers will know, may have many different faces depending on what is going to be insured; the type of vehicle and subtype of insurance policy. Contract Hire or simply Lease, gap insurance can be obtained for a vehicle on arrangement only, but at the same time it is available to both companies and private individuals. If you have your car on lease or hire, it seems to be a good protection should anything bad and unexpected happen to the car, which is not owned by you. Companies dealing with Contract Hire GAP insurance are usually able to cover cars which are up to three or five years old and for a maximum period of around five years. In most cases Contract Hire GAP insurance is available for the period of time you require. So, if you have already leased the car for up to circa 6 months into a four or five year lease - you are supposed to pay only for the remaining cover. If, for any reason, the vehicle is written off during the contract hire or lease agreement, the driver will be personally liable for any financial shortfall remaining unless the car is protected by the Lease GAP Insurance. The amount of Contract Hire GAP insurance shall simply fit the difference between what you owe to the contract hire company and the settlement provided by the motor insurance company.