Lease & Contract Hire Gap Insurance

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When you lease a car, its value can drop faster than you might expect. That means if your vehicle is written off, your insurer will usually only pay what it’s worth at the time — which could be less than what’s left on your agreement.

This can leave you covering the shortfall yourself.

Sura Lease & Contract Hire Gap Insurance is designed to take that worry away. If your car is declared a total loss, we’ll cover the difference between your insurer’s payout and the remaining balance on your lease. We’ll also contribute up to £500 towards your motor insurance excess.

It’s a simple way to protect yourself from unexpected costs and keep things straightforward if the worst happens.

This policy is designed for vehicles on a Lease or Contract Hire agreement. If your vehicle is financed through a Personal Contract Purchase (PCP) or Hire Purchase (HP), this cover won’t be suitable. In that case, our Return to Invoice Gap Insurance may be a better fit.

 

About Our Lease & Contract Hire (PCH) Gap Insurance

  • Pays Lease and Settlement Charges
  • Covers Contract Hire and Leases
  • Cover from 2 to 4 years
  • 30 Day Money Back Guarantee
  • Covers All Factory Fitted Options
  • Unlimited Claim Limit on vehicles up to £50k
  • Covers Insurance Excess Up To £500
  • Covers named drivers on your insurance policy

 

Why consider Lease & Contract Hire Gap Insurance?

Even brand new cars can lose value quickly. It’s common for a vehicle to drop significantly in value during the first year, and this can continue over the length of a lease.

If your car is written off due to an accident, theft or fire, your motor insurer will usually pay what the car is worth at the time. This amount could be lower than what’s left on your lease agreement, meaning you may need to cover the difference yourself.

With write-offs happening regularly across the UK, many drivers choose to put cover in place to help protect against this kind of shortfall.

Sura Lease & Contract Hire Gap Insurance is designed to help bridge that gap. If your vehicle is declared a total loss, the policy can pay the difference between your insurer’s settlement and the remaining lease balance.

Why choose Sura?

We aim to keep things simple, clear and customer-focused. Here are a few reasons drivers choose Sura:

  • Specialist knowledge
    Our team understands car finance and Gap Insurance, and we’re here to make things easy to understand.

  • Regulated and trusted
    We are authorised and regulated by the Financial Conduct Authority and operate to high standards.

  • Straightforward approach
    We focus on helping you understand your options, so you can decide what works best for you.

  • Flexible cover options
    We offer a range of options so you can choose a level of cover that suits your needs.

  • Customer-first service
    Providing a smooth, supportive experience is important to us, from quote through to claim.

 

Frequently Asked Questions

This product is underwritten by Hiscox Underwriting Limited on behalf of Hiscox Insurance Company , who are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority under Firm Reference Number 113849. which is registered in England, Registered office 22 Bishopsgate London EC2N 4BQ United Kingdom, Registered Number 00070234

This insurance is administered and claims are handled by Spectrum Insurance Services Limited.

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.

Included as standard, we protect your initial rental 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 0330 043 99 33.

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.

You may also be able to spread the cost over 10 months. The latter is administered by an independent agency and a service fee will be applied by them. If this option is not available, please call our team who may be able to assist.

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 acquiried a vehicle via a lease or contract hire agreement, our contract hire gap insurance protects you from a significant ongoing liability if your car is written off. It will cover the difference between your comprehensive motor insurance payout and any early settlement charges enforced by the finance company.

If your car is declared a Total Loss, your motor 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 can depreciate 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 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 agreement shows your contractual commitment to £20,000 in payments, 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 lease agreement. If you had taken out lease gap insurance from Sura, 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 Sura will then pay the difference between your motor insurer's settlement and the total finance remaining on the vehicle.

As standard your deposit will also 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.

This policy is for individuals with a vehicle on Lease or Contract Hire. If your vehicle is financed via a PCP or Hire Purchase (HP) Agreement then this policy is not suitable for you. Our Return To Invoice policy offers great coverage in these circumstances.

Our policies cover your motor insurance excess up to the specified limits below should you make a Total Loss claim:

  • Contract Hire / Lease Gap Insurance: £500
  • Return to Invoice: £1,000
  • Vehicle Replacement: £1,000

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. Including "named" drivers.

This is a one-off premium for the full term of the policy you select.

Once your car has been written off (Total Loss), your remaining finance agreement will be paid and the outstanding balance and your financial commitment will come to an end.