Brand new Lease- do I need gap insurance?

[harrygoring12]

Hello i have recently took out the Tesla Deal on PCH that has been discussed on here but i am wondering if i need gap insurance? My current policy says it has a new car policy in the first year where it replaces with a brand new car like for like in event of a write off but im not sure how this works on a lease?
I have called the lease company but they don’t really seem to understand what I’m asking.
I basically don’t want to be left with a Situation where the insurer says the car is for Say £30k but I owe £40k!

Any advise greatly appreciated.

[Dog Star]

You would be well advised to get it. It’s not expensive either. Check out ALA.

[Robertb]

Funnily enough I met a friend last night, who is currently wrestling with a lease and insurance company after writing off their car which all sounds painful. So, yes, I would get gap insurance. I'd be interested to know what it costs.

[loskie]

https://www.gocompare.com/car-insurance/gap-insura...

https://www.theaa.com/leasing/leasing-guides/insur...


Whilst these guys obviously have an interest in selling GAP. There's a simplistic explanation here.

[ScubaBiker]

You would be crazy not to.

I have a Tesla PCH lease and have GAP insurance with ALA, it really isn't that expensive.

[vikingaero]

ScubaBiker said:

You would be crazy not to.

I have a Tesla PCH lease and have GAP insurance with ALA, it really isn't that expensive.

I was going to recommend ALA. I've also used memonline for legal and gap: https://memonline.co.uk/gap-cover-insurance/

Most of these third party firms are way cheaper than buying via a dealer with all the commission loading.

[venster70]

You don't need it if the car is under 12 months old, as your insurance will cover it, but after 1st 12 months, very much advised.

[Truckosaurus]

For leases you are also insuring your initial payment with the GAP insurance.

eg. You pay 3 months up-front and get issued a shiny new car, which gets written-off in the first week, the insurance will do a deal with the lease company to pay them (and because they bought the car for buttons are happy). Then you the driver are left empty handed and have paid 3 months rental for a week's worth of motoring and then have to find another 3 months rent for the next car.

[GeniusOfLove]

Absolutely 100% get it, there are products specifically for contract hire too. It's not expensive either.

[Robertb]

I may be imagining it, but I think I saw Jayemm on cars mention a discount code for ALA insurance on a recent YouTube video as a sponsor.

Edit to add, no I didn’t imagine it… use code JAYEMM10 for 10% off.

Edited by Robertb on Friday 17th April 19:40