Is Contract Hire Gap Insurance a Gimmick or A Real Must Have for Any Owner?

Traditionally buying a new business or personal vehicle is expensive. Contract hire and lease packages had made affording a new vehicle easier than ever. The no-nonsense simplicity of the package as well as the sheer flexibility means that it is quickly becoming one of the nations favorite ways of funding a vehicle purchase.

This attraction is now not only limited to the business world, instead growing numbers of the public all keen to take advantage of the low commitment and low initial outlay that the package offers.

So is contract hire gap insurance honestly worth buying? Will it actually work and do you really need it?

The Financial Conduct Authority are keen to promote a transparent finance and insurance market. A financial market in which the public can have confidence in, safe in the knowledge that financial services will do as they expect during the life time of their policy and offer real benefits.

So will contract hire gap insurance be able to stand the test of time and live up to the expectations of the market?

Many contract hire owners are now blissfully unaware that if their vehicle was written off or declared a total loss that they could be left not only with no vehicle but also with a shortfall to settle.

We also know that some contract hire providers make the concept of the policy almost impossible to understand. So what are the benefits of a policy?

Simply put if you have a vehicle on a contract hire package you are legally responsible for any financial shortfall between your insurance companies settlement on the day of loss and the amount outstanding on your finance agreement.

Please remember that for your contract hire company their primary concern is simply to get their money back. They actually do not mind if you make your monthly payments and then hand them back a physical asset at the end of the agreement. Or perhaps buy yourself out of the contract? For them it will and always has been about protecting their investment. The only time this can change is if your vehicle is written off.

At this time any differences between their expected residual value and the real market value are now your responsibility as well as any outstanding finance.

This means that unless you have a contract hire gap insurance in place you could be left with no car, having to find another deposit rental as well as clearing any outstanding rentals.

So is contract hire gap insurance a gimmick?

Insurance has and always will be about risk and what happens should a specific event happen. For the vast majority of contract hire owners we think that it is a safe and prudent choice. That is to say that you find a policy which can cover you and your circumstances. Also making sure that the price is fair and reasonable. In that case it is in our opinion a complete no- brainer.

Do’s And Don’ts Of Your First Driving Lesson

If you don’t know how to drive, you can sign up for a driving course and take driving lessons. On your first day in the class, you may get a bit nervous. But you should not be afraid because your instructor will be there to answer all your questions and get you ready for driving. To help you with your driving lessons, we have given below a few dos and don’ts. Keeping these tips in mind will make your first lesson a lot easier than you will think.

Dos:

1. Apply for the provisional license

Since you can’t take a driving lesson without a provisional license, you should apply for one and get it as soon as possible.

2. Choose the right time for lessons

What time of the day do you feel the most energetic? Answering this question is important. If you feel good in the morning, you should get enrolled for your driving lessons in the morning. And if you feel fresh in the evening, you can take the lessons in the evening.

3. Get the right pair of shoes

The shoes you will put on before getting behind the wheels should be comfortable. The sole of the shoes should be firm, but shouldn’t be too thick. In the same way, ladies should not put on shoes with high heels.

4. Ask relevant questions

No matter how many questions you have on mind, sit with your instructor and get answers to all of the questions. This will help you feel more comfortable.

5. Get a progress record

Most instructors give progress logs to their students. Your progress log will be completed after every driving lesson. Also, it will contain a record of your progress during the course.

6. Get some rest

You need rest after each lesson. So, you may want to set some time aside for recharging your batteries.

Don’ts

1. Be Panic

Your instructor won’t put you or anyone else at risk. You will be taken care of throughout the course. So, you shouldn’t panic no matter what. You will be in good hands.

2. Forget your glasses

In the beginning of your first driving lesson, your eyesight will be checked. Your instructor will ask you to read something written on something a few meters away. If your eyesight is weak, you may want to put on your glasses.

3. Be afraid of getting behind the wheel

Probably, your instructor will teach you how to drive on an isolated road. There won’t be much traffic. For the first couple of lessons, your instructor will take you to the desired spots.

4. Be afraid of making mistakes

During the first few lessons, you will make some mistakes. As a matter of fact, your instructor will teach you how to start the car, apply the gears and use the breaks at the right time.

5. You know everything

Even if you already know a few basic rules of driving doesn’t mean you know everything. Try your level best to learn as much as you can about driving.

So, these are a few dos and don’ts of driving lessons. Keep these in mind when taking driving lessons.