MotorEasy, vehicle ownership and management solution, has launched a Guaranteed Asset Protection (GAP) product for leased vehicles, aiming to provide comprehensive financial protection for drivers.

MotorEasy Lease GAP Insurance was designed to provide lease customers with financial protection in the event of their leased vehicle being declared a total loss and the insurance pay-out does not cover the remaining balance due.

Alongside the existing Return to Value (RTV) and Return to Invoice (RTI) products, Lease GAP aims to ensure drivers are protected from financial loss however they purchase their vehicles.

Select Car Leasing, a provider of car leasing solutions, was the first MotorEasy partner to offer the product to its customers.

Duncan McClure Fisher, chief executive officer of MotorEasy’s parent company Intelligent Motoring, said: “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.

“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.”

Simultaneously, MotorEasy Lease GAP, Return to Invoice (RTI) and Return to Value (RTV) provide cover for vehicles purchased on Hire Purchase, Personal Contract Purchase, cash or finance.

RTI is for vehicles less than six months old, and covers the shortfall between the insurer’s pay-out and the vehicle’s original invoice price, while RTV is for vehicles of more than six months old and the payment is based on the vehicle’s market value at the time the policy was taken out.

McClure Fisher added: “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.

“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.

“We provide flexible options on commissions or margin settings as well as opportunities to earn follow-on business through other products, for example, receiving an additional bounty payment from a Lease GAP Insurance customer who goes on to purchase an Alloy Wheel or Cosmetic Insurance policy.

“We are committed to providing innovative solutions that ease the bottom line for our partners and bring peace of mind and financial security to motorists.”