Contract Hire / Finance Shortfall Gap Insurance

To make sure you purchase the right amount of cover for your vehicle, you should use the confirmed purchase price that will be listed on your invoice of sale. This should include any dealer options.

The following should all be excluded;

Deposit allowances, rebates, discounts, concessions, incentives, cashback, contributions, new vehicle registration fees, number plates, warranty costs, road fund licence fee, insurance premiums, fuel, areas, any negative equity and any other extras.

If you are leasing your vehicle, you should use the P11D value.

The most we will pay for a total loss is the shortfall between the amount your motor insurer pays on your motor insurance policy following a total loss and the outstanding balance owed on your finance agreement.

If your vehicle has a value over £50,000 the most we will pay is the amount shown on your policy schedule. Typically, £30,000.

We offer an optional add-ons that will insure your initial deposit up to £3,000.

Once you make your payment your policy documents will be forwarded to you (please allow up to 2 hours).

You will also receive a confirmation of payment. Both should be retained.

If you do not receive your policy documents and/or payment confirmation please call us on 0113 460 78 00.

Total loss is a judgement made by your insurer when your vehicle has been written off as a result of accidental damage, your own or third-party fault, vandalism, theft or fire.

Once you have made a claim under the motor insurance and your claim has been agreed, the vehicle title has been transferred to the motor insurer, and a payment has then been made as a result of the incident, then your car can be declared a total loss.

You must purchase your policy within 180 days of purchasing your vehicle.

You can either make a single payment via credit or debit card with no extra card charges, or you can spread the cost over 12 months.

The latter is administered by an independent agency and a small administrative fee will be applied.

To be able to make a valid claim, you should ensure that the policy is in the name of the registered keeper, owner or hirer of the insured vehicle.

If you've taken ownership of a vehicle via finance, lease or contract hire our contract hire gap insurance protects you from a significant ongoing liability if your car is written off.

If your car is declared a Total Loss, your insurer will offer you a settlement that reflects the current value of the car, not the price at the time of purchase. As the average car depreciates by up to 60% over its first three years you could be left with a significant shortfall. If you are still making finance payments, you will still be liable for covering that shortfall.

Our premium Finance, Lease & Contract Hire Gap Insurance can help with any unwanted extra costs and ensure you're not left badly out of pocket should the worse happen.

If you purchased a car for £20,000, but when it's declared a Total Loss your insurer offers you £14,000, then you could be left with a £6,000 shortfall on your remaining finance agreement. If you had taken out finance gap insurance from Platinum Gap, your policy would cover that £6,000 deficit.

Contract hire is specifically covered under this policy, recognising that you may be the hirer of the vehicle, not the registered keeper.

If you have gap insurance and your car is subsequently written off your motor insurer will confirm that your car is a total loss. A settlement figure will be requested from your finance provider, and Platinum Gap will then pay the difference between your motor insurer's settlement and the total finance remaining on the vehicle.

If you've also chosen deposit protection your deposit could be refunded to a maximum of £3,000.

It's not a requirement to take out gap insurance, but it can be a sensible move. If your car was completely written off and decided not to take out gap insurance you could be left badly out of pocket.

There's no one size fits all gap insurance product that is tailored for all cars financed via PCP.

If you've only put down a minimal deposit, then Finance/Contract Hire Gap Insurance may be the best fit.

A Vehicle Replacement Gap Insurance policy would pay the shortfall between the settlement fee and the cost of a new vehicle of the same specification.

If you put down a large deposit, Return To Invoice gap insurance might be a smart choice, as it will cover the shortfall between the motor insurer's settlement and the cost of a replacement car that matches the specification of the vehicle.

It covers up to £1,000 excess should you make a Total Loss claim.

You are covered if your keys are stolen, and you have exercised due diligence in ensuring their safekeeping. No insurer covers for theft of keys as a result of owner negligence, such as leaving the keys in your vehicle while you are paying for fuel.

Please read the policy terms and conditions for a full list of exclusions.

As an internet provider who specialises in gap insurance, we do not have the overheads of some of our competitors. This means that we can provide premium products at more competitive prices.

Gap insurance will include all drivers covered on your comprehensive motor insurance policy.

This is a one-off premkum.

You can either make a single payment via credit or debit card with no extra card charges, or you can spread the cost over 12 months.

The latter is administered by an independent agency and a small administrative fee will be applied.

At the end of the transition period (1st January 2021), you will need to get yourself an International Driving Permit and a green card to ensure your insurance is valid if you intend to drive your vehicle in an EU country. You will also need a GB sticker for your car.

Brexit has no impact on gap insurance. Any gap insurance policy will remain valid if you drive in Europe - however, you do need to be covered by a fully comprehensive cover for the policy to be valid in the first place and this will require a green card from your insurer.