Insurance

Comprehensive Vehicle Insurance covers you for damage to your car and damage caused to other vehicles and property in the event of an insurance claim where you are deemed ‘at fault’. The different between Comprehensive Insurance and Third Party Insurance is that Third Party Insurance generally only covers damage to other vehicles and property in the event of an at fault claim.

Our specialists can provide Vehicle Comprehensive Insurance quotes on a range of different assets including cars, caravans, motorbikes, trucks, boats and more.

When do I need Comprehensive Vehicle Insurance?

Comprehensive Vehicle Insurance will generally be a requirement for finance settlement if you are purchasing a vehicle using a secured car loan. Most financiers will require your vehicle to remain comprehensively insured for the entire duration of the loan.

Comprehensive Vehicle Insurance also gives you peace of mind that your vehicle, along with any other vehicles or property involved will be covered in the event of an accident. Comprehensive Vehicle Insurance generally also includes coverage for events such as fire and theft and various other incidents.

Benefits of Comprehensive Vehicle Insurance and additional cover options:

• New for old replacement on vehicles up to 2 years’ old which are deemed a total loss
• Yearly, monthly or fortnightly flexible payment options
• Your choice of vehicle repairer
• Lifetime guarantee on vehicle repairs
• Emergency assistance with accommodation, rental vehicle and travel in the event of a claim
• Agreed or market value
• Hire car following an accident
• Windscreen replacement option
• Coverage for personal effects or work tools
• Variable excess options
• Rating protection
• No claim bonus and discounts
• Low kilometre discounts
• Multi-policy discounts

Shortfall Insurance, also known as Guaranteed Asset Protection (GAP) Insurance protects you from having to pay the ‘shortfall’ between what you owe on your car loan and the amount that your insurance company pays out in the event that your car was written off or stolen.

Whether you insure your vehicle for market or agreed value, there can sometimes be a difference or gap between the amount owing on your finance and the insurance value, especially at the beginning of the loan. In the event that your vehicle is deemed a total loss, your insurance company will pay out the insurance value, however you will then be responsible for paying any money left owing on the finance.

When would Shortfall Insurance be beneficial?

Shortfall Insurance is most valuable when you are either looking to purchase a new or near new vehicle and or not looking to put down a sizable deposit. This means that your loan to value ratio will be higher and there is a higher risk of having a gap if your vehicle was to be written off.

As an example, let’s say you purchased a brand new vehicle for $20,000 and forgot to put the handbrake on when you got home. Consequently, it rolled down your street into a parked car. Now that’s an extremely unlucky situation, but these things happen every day. Now you did have comprehensive insurance which is great, however your insurer pays out the agreed value on your vehicle of $18,000. Shortfall insurance makes sure you’re not out of pocket for the additional $2,000 still left owing on your loan.

Now let’s take a look at another example, you have a $40,000 loan for your pride and joy, a convertible BMW coupe. A truck loses control and accidentally hits your car while you’re eating lunch with friends. Your BMW is deemed a total loss and while the truck’s insurer pays out the agreed value of $35,000, this doesn’t cover the outstanding loan amount. Now we know newer cars depreciate in value, but how are you going to come up with a spare $5,000 to pay out the remaining loan on a car you no longer have? Thankfully Shortfall Insurance not only covers the outstanding loan balance but some policies also have options to cover extras such as your excess payments and costs of replacing your vehicle (if your comprehensive insurance doesn’t cover it). Shortfall Insurance policies also have options to cover fees and charges payable on your new vehicle such as delivery charges, registration, CTP, insurance premiums and stamp duty.

Shortfall Insurance can offer great peace of mind knowing that you’re covered if something was to happen to your vehicle and you won’t be left out of pocket to payout your loan. It also offers peace of mind that your Credit Rating isn’t in danger in the event that your vehicle is written off and you can’t meet the remaining loan repayments. In some cases, Shortfall Insurance can also assist in the purchase of a new vehicle by providing you with additional funds. Generally, Shortfall Insurance can also be combined in your vehicle finance thereby providing peace of mind all wrapped up in your single, affordable monthly finance repayments.

Benefits of Shortfall Insurance

• New for old replacement on vehicles up to 2 years’ old which are deemed a total loss
• Protects your finance and credit rating in the event your vehicle is deemed a total loss and minimizes your out-of-pocket expenses
• Can also be included in most vehicle finance options
• Available for both new and used vehicles purchased either through dealerships or private sales
• Generally also includes extra coverage cash benefits to assist with the purchase of a new vehicle

What is Loan Protection Insurance?

Loan Protection Insurance can help lift the financial burden of your loan repayments in the event of a serious illness, involuntary unemployment, terminal illness or death. Depending on the coverage option selected, Loan Protection Insurance can help cover your loan payments and also provide a cash assist benefit subject to any maximum payouts stipulated in the contract.

Our specialists can provide Loan Protection Insurance quotes on a range of different assets including cars, caravans, motorbikes, trucks, boats and more.

When would Loan Protection Insurance be beneficial?

Loan Protection Insurance could prove beneficial to anyone with finance. It can help protect you and your family’s way of life in the event that you are unable to meet your loan commitments due to involuntary unemployment, serious illness, injury or death.

Features and benefits of Loan Protection Insurance:

• Flexible terms and coverage to suit your needs
• Can also be included in most vehicle finance options
• In the event of your death, the policy will pay out your outstanding loan balance