Do you actually need GAP insurance on a lease?

GAP insurance — short for Guaranteed Asset Protection — is one of those add-ons that's easy to dismiss until you understand what it actually protects against.

Here's the scenario. You lease a new car. A few months in, it's stolen or written off in an accident. Your comprehensive insurance pays out the car's current market value — but cars depreciate fast, especially in the first year. The market value may be less than what you still owe the finance company on the lease. That shortfall is the 'gap', and without GAP cover, it comes out of your pocket.

GAP insurance covers exactly that difference, so a total loss doesn't leave you paying for a car you no longer have.

Do you need it? It's most valuable early in the term, when depreciation is steepest and the outstanding balance is highest, and on cars that depreciate quickly. If you've made a large down payment or the car holds its value well, the gap is smaller and the cover matters less.

Some lease packages include GAP cover; others sell it as an extra. Before you buy it standalone, check whether it's already bundled, and weigh the cost against how much you'd be exposed in a worst case.

When comparing offers on LeaseHub, note which already include comprehensive insurance — and ask the dealer specifically whether GAP protection is part of the deal or an add-on.