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What is GAP insurance for a leased car in Germany?

In short

GAP cover pays the difference when your leased car is written off or stolen: comprehensive cover (Vollkasko) pays the replacement value, but the leasing company asks for a higher settlement amount. That gap is often EUR 2,000 to 8,000. As an add-on to comprehensive cover it usually costs only a few euros a month.

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What is GAP insurance for a leased car in Germany?

What it costs

Published prices for GAP cover in Germany, 2026.

Example	Typical range
GAP as an add-on to comprehensive cover	about EUR 30 to 80 a year
Stand-alone GAP policy, by car value and term	about EUR 50 to 150 a year
Single policy for three years, paid once	about EUR 250 to 500
GAP through the leasing company, paid with the rate	about EUR 15 to 35 a month

Guide values as of September 2026 from publicly quoted prices. The figures in the worked example are assumed values and a guide value from our quoting practice. Your price depends on the car, the term and your comprehensive policy; we obtain the exact quote.

Worked example

Leased compact car, write-off after 18 months

A 36-month lease, and the car is destroyed in an accident you caused. This is how the settlement looks.

Settlement amount from the leasing company	EUR 34,000
Replacement value per assessor	EUR 29,000
Comprehensive cover pays, minus EUR 500 deductible	EUR 28,500
Gap to the settlement amount	EUR 5,500
GAP cover pays the difference to the replacement value	EUR 5,000

Without GAP cover you pay EUR 5,500 yourself, with it only the EUR 500 deductible. Assumed values.

Where the gap comes from

A new car loses value fast. After a write-off, comprehensive cover pays the replacement value (Wiederbeschaffungswert), which is what a similar used car costs. The leasing company calculates differently: it wants the outstanding instalments and the agreed residual value, discounted to the day of the loss.

The lease usually ends early after a total loss and the final invoice arrives at once. If the settlement amount is higher than what your insurer pays, you owe the rest. This applies to residual value leases and mileage leases alike.

Situation	Comprehensive cover pays	GAP cover pays
Write-off after an accident	replacement value minus deductible	difference to settlement amount
Theft of the whole car	replacement value minus deductible	difference to settlement amount
Repairable damage	the repair	nothing
Missed lease payments	nothing	nothing
Extra mileage or damage at return	nothing	nothing

What GAP cover does not pay

The deductible of your comprehensive cover usually stays with you. If the insurer cuts its payment for gross negligence, such as running a red light, the GAP payment can drop as well. That is why a waiver of the gross negligence defence matters on a leased car.

Some policies cap the GAP payment, for example at 20 percent above the replacement value or at a fixed amount. No GAP cover pays overdue instalments, reminder fees or excess mileage charges.

Insurance add-on or the leasing company's offer

Many comprehensive policies offer GAP cover as an add-on, and some already include it. Dealers and leasing companies sell their own GAP products paid with the monthly rate. Published examples put these at EUR 15 to 35 a month, clearly more than the add-on.

Read your lease and your insurance terms before you sign. Paying twice makes no sense, as only one of them will pay the gap in the end.

When you do not need GAP cover

If you bought the car outright, there is no settlement amount. What helps then is new price compensation (Neupreisentschädigung) in comprehensive cover for the first 12 to 24 months.

With a large down payment, a short term or near the end of the lease the gap is often small. And if your lease already includes GAP protection, you do not need a second one.

Step by step

Check your lease contract for included GAP protection.
Check whether your comprehensive policy includes GAP cover or offers it as an add-on.
Look for caps: the cover should pay the full difference, not just a percentage.
Choose a waiver of the gross negligence defence in comprehensive cover.
Compare the leasing company's offer with the add-on from your car insurer.

Checklist

Comprehensive cover for the whole lease term
GAP cover without a low cap
Waiver of the gross negligence defence
A deductible you could pay at once
No double GAP cover through lease and insurer

Common mistakes

Signing the dealer's expensive policy when your insurer already covers the gap
Believing GAP cover also pays missed instalments or extra mileage
Losing GAP cover when switching insurer
Buying GAP cover for a car paid in cash instead of checking new price compensation

Questions and answers

Frequently asked

Is GAP insurance mandatory in Germany?

Not by law. Many leasing companies require comprehensive cover, and some also require GAP protection in the contract. Your lease decides.

Does GAP cover apply to a car loan?

With many insurers yes, then it pays the difference to the outstanding loan. Not every policy includes this, so read the terms.

Does GAP cover pay my deductible?

Usually not. You carry the comprehensive deductible yourself.

What happens if I leave Germany during the lease?

Talk to the leasing company first. Insurance and lease are tied to the German registration, and GAP cover ends with the lease or the policy.

Do I need GAP cover on a mileage lease?

Yes, the settlement can still exceed the replacement value because the outstanding instalments are charged.

Does GAP cover help with partial damage?

No. It only applies if the car is destroyed, not worth repairing or stolen.

Sources

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