Honest John

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Honest John is working as a GAP Insurance introducer for ALA IB Limited trading as ALA Insurance Brokers, who is Authorised and Regulated by The Financial Conduct Authority. FCA Firm Reference No 571109. Registered in England, number 06833207. Registered office: ALA IB Limited, Unit 3, Park Farm Courtyard, Easthorpe, Malton, YO17 6QX

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Contract Hire Plus GAP Insurance


What is Contract Hire Plus GAP Insurance?

Contract Hire GAP Insurance will, in the event of a total loss claim (accident, theft, fire or flood damage), cover up to 100% of the outstanding rental payments for the vehicle and cover any shortfall in the market value settlement provided by the insurer.

For an additional premium you can now also protect the initial rental/deposit you paid at the start of your agreement – this is usually equivalent to 3, 6 or 9 of your subsequent monthly rental payments. This means that if your vehicle is declared a total loss, as well as clearing your outstanding payments with the finance company you receive an additional settlement for the upfront payment.

There are three levels of cover to choose from: £1,000, £2,000 or £3,000. The amount you select should be enough to cover the full amount you paid as an initial rental.

Do I need Contract Hire Plus?

The answer to this is yes, if you want to:

  • Cover your liability under the contract hire agreement if your vehicle is a total loss
  • Be able to get a new vehicle on a new agreement with no debt from the previous agreement
  • Receive back your deposit/initial rental (if you select Initial Rental cover)

Can I buy Contract Hire Plus?

  • I have a lease or contract hire agreement, with no option to buy at the end of the agreement
  • My vehicle is new, or used up to 10 years of age
  • My vehicle was collected within the last 365 days
  • My vehicle is not excluded

    Vehicles used in any sort of competitions or rallies. Vehicles used for racing, pace making, speed testing or in reliability trials; Vehicles not listed in Glass's Guide; kit cars; invalid carriages; commercial Vehicles of more than 3500kg gross weight. Any, taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle.



Contract Hire GAP Insurance Cover Features:

  • Available up to 5 years for vehicles on lease or contract hire
  • We are fully authorised and regulated by the Financial Conduct Authority (FCA) and your policy is covered by the Financial Services Compensation Scheme
  • Pays as standard up to £250 of your Comprehensive Insurance excess
  • Our policies do not have a ‘Market Value Clause’
  • Our policies do not a have a ‘Glass Guide maximum retail value clause’
  • Any amendment made FREE of charge
  • If you select Initial Rental Cover the policy will also ensure you recover your initial rental payment, up to a maximum of £3,000
  • Policy transfer – pro rata transfer of unused premium if you change your vehicle, with no admin fees
  • Discount available for renewal and additional policies
  • We guarantee to match any comparable online GAP quote
  • This policy will pay up to 100% of outstanding rentals and any shortfall in the vehicle value - *see illustration below


Contract Hire GAP Insurance Cover Example:

Your vehicle purchase price: £20,000
Your comprehensive market value insurance payout: £10,000
The amount owed to the contact hire finance company to end the finance agreement: £18,000
Our Contract Hire Plus payout: £8,000
Comprehensive insurance payout + ALA GAP Insurance payout = £18,000
(Leaving you clear of any owed finance on your vehicle)