Lease cars and GAP insurance

[Lynx516]

I'm in the process of doing the paperwork for a new Volvo V90 and in the T&Cs it says that if the car is a total loss I would have to pay:

1) 50% of the remainder of hire charges
2) A sum equal to anticipated residual value

So I'm trying to work out the insurance situation. Am I correct in saying that my insurers should cover 2) and I would need GAP insurance for 1)?. So would only need GAP insurance for a sensible portion of the remaining hire charges?

[ilikejam]

Gap covers the difference between what your insurer says the cars worth and the outstanding finance. It's not strictly speaking to cover your payments, but in effect that's probably what it does.

Some insurance policies cover the full value of the car for the first year anyway, so it's worth checking if you even need Gap at all.