MB&G launches new fleet contract hire and leasing gap product

Mechanical Breakdown and General Insurance Services Ltd (MB&G) has launched a flexible new fleet GAP product specifically for cars that are leased or on contract hire.

Unlike many GAP products, MB&G’s policy settles any outstanding rental payments on behalf of the fleet operator, as well as paying out the difference between the actual market value of the car and the insurance company’s written down value.

This ensures fleet operators or private individuals alike can walk away from a written off lease car without any expensive additional payments or early termination charges from the leasing supplier, or any issues with their insurer.

Fleet GAP is available directly to fleet operators or to contract hire companies that can offer the service directly to their customers.

With residual values on higher cost cars falling by a few hundred pounds each week, the GAP policy offers fleet lessees extra piece of mind that they will not be left with a shortfall in cover should the unfortunate happen and their vehicle be written off.

“This product is particularly relevant as it protects fleet budgets at a time when they are coming under fire from all areas,” said Kevin Pearce, MB&G’s operations director.

“In line with the dramatic decline in new and used vehicle sales, the residual value of vehicles has fallen accordingly. Anyone suffering an insurance write off will be even further out of pocket. Our policy is all about providing extra peace of mind,” he added.