It’s a convenient way to sort out your motoring – unless things go wrong. If your contract hire vehicle gets written off by accident, fire, theft or flood, putting in an insurance claim for the total loss might well leave you short of the amount your finance company will be looking for.
Depending on when the total loss occurs, a vehicle with an initial price of £20,000 might only generate a market value payout of £10,000 at the time of your claim – but in this example the bill from the contract hire finance company to settle the finance agreement might well be £18,000. Pretty shocking.
In such a situation, ALA’s Contract Hire Plus GAP Insurance will pay out the £8,000 shortfall between the market value payout and the outstanding finance bill, leaving you free and clear of your financial obligations and ready to ping in an order for another vehicle.
Contract Hire Plus GAP Insurance is available for up to 5 years for leased or contract hire vehicles that have been collected by you within the last 365 days, and that are subject to an agreement with no end-of-term buying option. This policy takes care of up to £250 or your comprehensive insurance excess and doesn’t impose any charges for amendments. If you bolt on Initial Rental Cover you’ll even get your deposit/first rental sum back, up to a maximum of £3,000.
This Contract Hire Plus GAP Insurance lets you get on with your life and provides you with a seamless transition to the next vehicle – without the need to take out a loan to fix the mess caused by the previous one.