GAP Insurance (Guaranteed Asset Protection)
- Rated 4.9/5 on Feefo
- FCA authorised, FRN 315268
- BVRLA leasing broker member
- Part of Global Vehicle Group
GAP insurance for a car on contract hire or lease
Contract Hire and Lease (CHL) GAP insurance can cover an eligible shortfall between your motor insurer’s payout and the amount needed to settle your lease after a total loss. This product is administered by Premia Solutions Ltd (PSL). GAP is optional and never a condition of any lease through Intelligent Vehicle Finance.
We sell on a non-advised basis: we give information, not a recommendation. You decide whether the policy meets your demands and needs.
Intelligent Vehicle Finance is a credit broker, not a lender. A trading style of XLCR Vehicle Management Ltd. Authorised and regulated by the Financial Conduct Authority, FRN 315268. We may receive commission or another benefit from any lender or supplier we introduce you to. Finance is subject to status, individual funder criteria and availability.
Go to: How it works · Benefits · Eligibility · Buying timeline · Claims · Cancellation
What is the gap?
A total loss is when your motor insurer declares your car uneconomical to repair or replace after an incident such as an accident, fire, flood or theft. Most motor insurers base their payout on the car’s market value at that time.
Insured value
The value of the car under your comprehensive motor insurance at the time of the total loss.
Settlement figure
The eligible amount due to the hire or lease company at the date of loss to discharge the agreement. Excluded charges are not added to the GAP calculation.
GAP does not replace comprehensive motor insurance. The policy’s definitions, exclusions and claim limit determine the eligible shortfall.
Which amount is paid? Whichever is greater
For a valid total-loss claim, the CHL GAP payment is the greater of these two amounts, subject to the policy terms:
1. The eligible shortfall
The settlement figure minus the insured value. The maximum shortfall benefit is typically £15,000; see your policy schedule.
2. The premium you paid
The minimum claim payment equals the premium paid for your GAP policy. It applies when the eligible shortfall is lower, including when there is no shortfall.
These are alternatives, not two amounts added together. Other eligible policy benefits can be paid in addition.
What benefits are included?
This is a summary of the Premia CHL GAP product. The limits and conditions in your policy schedule and documents apply to each benefit.
Up to £2,000
Initial rental contribution after a total loss. A contribution equal to the initial rental you paid, capped at £2,000, in addition to the shortfall claim payment.
Up to £500
Motor excess contribution after a total loss. Applies where the excess cannot be recovered from a third party.
Up to £500 a year
Motor excess on non-total-loss claims. A combined limit of £500 per policy year across eligible claims, not £500 for every claim.
Up to 60 months
Cover to match the agreement. The period typically matches the hire or lease, with a maximum of 60 months from the agreement’s start.
Temporary replacement vehicle after a total loss
New policies include a temporary replacement vehicle benefit. The number of days and daily amount are limited by your policy schedule. Cover starts when PSL receives the motor insurer’s total-loss confirmation and ends when the GAP claim is settled or the benefit period ends, whichever comes first.
It does not apply to a non-total-loss event or if you are entitled to a replacement vehicle through your motor insurer, another policy or a third party. Obtain PSL’s authorisation before arranging your own vehicle. Additional charges such as fuel, fines and excess mileage are not covered.
Who and what can be covered?
Cars only: this CHL GAP product is not available for commercial vehicles, including vans. Eligibility conditions apply; check your policy documents before purchase.
✓ Eligibility checklist
- You are the individual or company hiring or leasing the insured car.
- You are resident, or your business is registered, in the UK, Channel Islands or Isle of Man.
- You keep comprehensive motor insurance throughout the policy.
- You buy the GAP policy within 90 days of the hire or lease start.
- The agreement’s monthly rental is under £2,000. This is an eligibility limit, not a lease offer.
✕ Not eligible
- Commercial vehicles (vans), minibuses, buses, coaches, trucks, motorhomes and trailers.
- Taxis, licensed private hire, courier, emergency, breakdown and recovery vehicles.
- Left-hand drive vehicles, grey imports and vehicles modified after the hire or lease began.
- Vehicles used for hire and reward, daily hire, dispatch, driving tuition or chauffeuring.
- Road racing, track days, rallying, pace-making, speed testing or other competitive use.
What is not included?
A total loss does not automatically mean a GAP claim is payable. These are key exclusions from the product summary, not the full policy wording.
Not included in the shortfall
- Vehicle Excise Duty (road tax), registration, delivery, fuel and administration fees.
- Insurance and warranty premiums, service plans, maintenance packages and protection kits. The separate minimum claim payment described above is a different benefit.
- Negative equity from a previous vehicle, arrears and associated late-payment costs.
- The salvage value if you keep the salvage, and deductions for damage unrelated to the total loss.
- VAT that a VAT-registered policyholder can reclaim.
Claims that are not covered
- Driving without a valid licence, while disqualified, or under the influence of alcohol or drugs.
- Theft by someone known to you who has access to the keys.
- No comprehensive insurance for the car or driver at the time of loss, or cover under a motor trade policy.
- You ask for a total loss when the motor insurer offers repair or replacement.
Non-total-loss excess: check the exclusions
No contribution is payable for glass repair or replacement, theft or attempted theft of belongings, damage caused by routine servicing or repair, or wilful neglect, abuse or deliberate damage. The motor claim must succeed and the excess must not have been waived or reimbursed. The claim must meet the policy schedule’s limits; deductions for reasons other than your excess are excluded.
Buying GAP: time to read, compare and decide
We sell GAP without advice. Eligibility and demands-and-needs questions establish whether the proposed policy is consistent with what you tell us. You receive information to make your own decision, rather than a personal recommendation.
The prescribed information explains the separate premium, duration, main benefits and exclusions, that GAP is optional and sold by other distributors, and when you can buy. It is dated and supplied on paper or another durable medium so you can keep it.
Day 1 · Information first
Receive the prescribed information. No GAP sale can be completed on this day.
Day 2 · Your choice
IVF will not chase you to close the sale. You may initiate an earlier purchase, with the consent explained below.
Day 3 · Time to consider
IVF will not chase you to close the sale. You can still initiate a purchase if you choose, with the required consent.
Day 4 · Deferral complete
Two clear days have passed. IVF may contact you about buying. There is no obligation to proceed.
The early-purchase condition: from Day 2, you must initiate the purchase, consent to it being completed earlier and confirm that you understand the normal two-clear-day restriction. An enquiry alone does not complete a sale.
Before deciding, compare the policy with your comprehensive motor insurance, including any replacement-car entitlement. Read the cover limits and exclusions alongside your lease agreement.
How to make a claim
Contact Premia Solutions Ltd (PSL)
For claims and policy queries, call 01926 622 660. You can also log a claim through www.mypremia.co.uk.
1 · Tell PSL promptly
Notify PSL as soon as you become aware of a potential claim and before accepting any offer from your motor insurer.
2 · Log the claim
Log a total-loss claim within 30 days of the incident. PSL will confirm the process and issue a claim form. Tell PSL promptly if your motor insurer replaces the car.
3 · Send the information
Complete the claim form and supply the information PSL requests. For a non-total-loss excess claim, send the completed form and required information within 30 days of the potential excess claim arising.
Documents for a non-total-loss excess claim
- Your comprehensive motor insurance schedule showing the applicable excess and the people covered.
- Your motor insurer’s settlement letter showing the incident date, settlement figure and excess applied.
PSL will tell you which documents it needs for a total-loss claim.
If you change your mind
Within 30 days
You can cancel within 30 days of receiving the policy document for a full refund, subject to the claim condition below. For a policy paid in one payment, contact IVF. For premium funding or pay-as-you-go, contact PSL.
After 30 days
For single-premium or premium-funded policies, provided no claim has been paid, the refund is proportionate to the unused months, less an administration fee set out in your policy. For premium funding, it also depends on how much premium has been received. Contact PSL.
Monthly pay-as-you-go
After 30 days, no refund is normally payable. The policy provides an exception where you can prove cancellation should be backdated. Contact PSL to cancel; cover continues until the end of the month already paid for.
After an excess claim has been paid, no premium refund is available. Check the cancellation conditions for your policy. Monthly pay-as-you-go insurance is different from paying for a single-premium policy by instalments; these descriptions do not confirm which payment options IVF offers.
Where to raise a complaint
About the sale
Contact Intelligent Vehicle Finance on 01752 429950 or through our contact page.
About administration or a claim
Contact PSL on 01926 622 660. PSL handles these complaints on behalf of the insurer.
If you remain dissatisfied
You can ask the Financial Ombudsman Service to review your case. Its contact details are in your policy documents.
GAP insurance questions
Is GAP insurance compulsory with an IVF lease?
No. GAP insurance is optional and never a condition of any lease through Intelligent Vehicle Finance. It is separate from the comprehensive motor insurance required throughout this GAP policy.
Does IVF recommend whether I should buy GAP?
No. IVF sells GAP on a non-advised basis. We give information, not a personal recommendation. You decide whether it meets your demands and needs; eligibility and demands-and-needs checks still apply.
Can CHL GAP pay if there is no shortfall?
For a valid total-loss claim, the minimum claim payment equals the premium paid for the GAP policy. This applies if the eligible shortfall is lower, including when there is no shortfall, subject to the policy terms.
How long does the GAP cover last?
The cover period typically matches the hire or lease agreement, up to 60 months from its start. The policy must be bought within 90 days of the hire or lease start. Check your policy schedule for the agreed dates.
Can I buy this GAP policy for a van?
No. Commercial vehicles, including vans, are not eligible for this CHL GAP product. Other excluded vehicles and uses include minibuses, taxis, licensed private hire, left-hand drive vehicles and vehicles modified after the hire or lease began.
Is the motor excess benefit £500 for each non-total-loss claim?
No. For eligible non-total-loss motor claims, the limit is £500 in total per policy year. Multiple claims share that limit. The motor claim must succeed, the excess must not be waived or reimbursed, and exclusions and policy limits apply.
Will GAP provide a temporary replacement vehicle?
After a total loss, new policies include a temporary replacement vehicle benefit with limits on days and daily amounts in the policy schedule. It does not apply to a non-total loss or where you already have an entitlement through another policy or a third party. Obtain PSL’s authorisation before arranging your own vehicle.
Can I buy GAP on the day I receive the prescribed information?
No. There is no sale on Day 1. From Day 2 you may initiate an earlier purchase if you consent and confirm that you understand the normal two-clear-day restriction. IVF will not chase the sale on Days 2 and 3; the normal deferral ends on Day 4.
Should I accept my motor insurer’s offer before contacting PSL?
No. Tell PSL as soon as possible and before accepting the motor insurer’s offer. Log a total-loss claim within 30 days of the incident. Call PSL on 01926 622 660 or use www.mypremia.co.uk.
Can I transfer my GAP policy?
A transfer may be possible to an eligible close family member on the same car, or to a like-for-like replacement supplied under your motor insurance. Not all policies allow a transfer to another person. Ask PSL and check the policy terms before assuming cover will continue.
For the lease itself, read about business contract hire or personal contract hire.
Intelligent Vehicle Finance is a credit broker, not a lender. A trading style of XLCR Vehicle Management Ltd. Authorised and regulated by the Financial Conduct Authority, FRN 315268. We may receive commission or another benefit from any lender or supplier we introduce you to. Finance is subject to status, individual funder criteria and availability.
Editorial responsibility: Stacey Smith, Brand Director, Intelligent Vehicle Finance. Reviewed and approved September 2026.
Last updated: September 2026