MotorEasy launches Lease GAP cover to strengthen driver financial protection

MotorEasy has launched a new GAP insurance product tailored specifically for leased vehicles offering cover if the car is written off and the insurance payout falls short of covering the remaining lease balance.

This latest addition comes amid rising scrutiny from the Financial Conduct Authority (FCA), which has challenged providers to better align GAP insurance products with how consumers acquire their vehicles.

“The FCA GAP insurance investigation forced providers to think carefully how they could better tailor their GAP solution to reflect how the customer purchased their vehicle,” said Duncan McClure Fisher, CEO of MotorEasy’s parent company, Intelligent Motoring.

“This new product enabled us to fine tune our risk and pricing matrix, delivering a more competitive solution that can cover initial rentals and outstanding lease payments, as well as provide the added benefit of excess protection.”

MotorEasy Lease GAP offers up to £15,000 in cover for any financial shortfall in the event of a total loss; up to £3,000 for initial rental coverage, £500 excess cover to help offset the main insurer’s excess payment and lease-specific protection that recognises the distinct nature of leasing contracts.

Select Car Leasing is the first to bring the product to market through its partnership with MotorEasy.

Lease GAP adds to MotorEasy’s existing Return to Invoice (RTI) and Return to Value (RTV) products, offering a full spectrum of protection depending on how the vehicle was acquired. RTI covers newer vehicles under six months old and bridges the gap between insurer payout and original invoice price. RTV is geared toward older vehicles, basing the payout on market value at policy inception.

“Our enhanced Lease GAP insurance, along with our RTI and RTV products, provide a comprehensive safety net, ensuring drivers are protected from unexpected financial losses,” McClure Fisher added. “And leasing companies, retailers, finance houses and motoring organisations can extend their customer proposition by offering our solution, either branded in partnership with MotorEasy or white labelled in their name.”