Mechanical Breakdown and General Insurance Services Ltd
(MB&G) has launched a new GAP product, tailored for cars that
are leased or on contract hire.
Under the terms of the policy, in the event of a write-off any
outstanding rentals are paid on behalf of the fleet operator, with
the difference between the market value of the car and the
insurance company’s written-down value also covered, avoiding the
payment of early termination charges to a lessor.
The product is available to lessors, who can then offer it to
MB&G said the cover was particularly relevant at a time when
residual values are dropping sharply.