Before you buy any type of gap insurance know exactly what type of lease you have.
I talk to customers and business owners all the time and believe me a lease can mean different things to different people. There are lots of different finance companies who all call the lease a different name, wow it can be very confusing. I know what I am do but even I can get bogged down in the different terms and names.
But help is at hand. There is one question you need to know just one.
Can you own your lease vehicle at the end of the agreement?
You may not want to ever own the vehicle but it is really important to know if you have the option. If you can own the vehicle then you have some form of purchase lease this means that you can protect yourself in different ways with gap insurance . There are lots of insurance terminology but in plain English ….
Because you can own the vehicle at the end you can financially loose out if something happens to it. If you have this type of lease you can protect yourself with many different types of gap insurance including return to invoice ( protect the invoice price you paid) or even vehicle replacement insurance. In most cases on line gap insurance suppliers will just class this as another form of finance.
If you can not own the vehicle at the end of the lease – Different kettle of fish.!
If you can not own the vehicle then you can not benefit from it no-longer being there. Do you remember I said about insurance companies sometimes using really strange terms??? Well there is a term called “betterment” Again plain English you can not benefit or be in a better position than you where from making an insurance claim.
OK with me so far I hope. This means that although you can not protect your lease vehicle with traditionally forms of gap insurance there is a special type of gap insurance which would allow you to protect yourself against any outstanding rentals.
The type of lease again can be called many different things so talk to your finance company.
Before you buy any form of gap insurance contact the broker they can talk you thought the different benefits.
As always it is really important that you know how your gap insurance will protect you should you ever need to make a claim.
So in brief check if you can own your vehicle at the end of the lease before you buy any form of gap insurance.