GAP Insurance (also known as Motor Equity Insurance) is insurance that works to assist when a deficit or shortfall occurs.
This is typically in response to the situation that your car is thieved or its value is deemed irrecoverable, and your Comprehensive Motor Vehicle Insurance income does not cover the loan balance unsettled on your finance agreement. This could possibly result in a liability of thousands of dollars.
A deficit may result when transaction-related costs such as stamp duty, registration, dealer transport or all-inclusive insurance cover are involved in the loan. This is because these extras may not enhance the vehicle’s price.
Or, it may happen when the vehicle’s price depreciates faster than the loan balance due to the amassed effect of accumulated interest and the vehicle depreciating.
Note that GAP Insurance and Purchase Price Insurance are separate and distinguished insurances.
Purchase Price Insurance will cover a shortfall between your Comprehensive Car Insurance payout and the cost you originally paid for your car,
GAP Insurance covers a shortfall between your Comprehensive Car Insurance payout and the reimbursement figure for your car loan.
Benefits of GAP Insurance
- Lessens or eradicates your likeliness to a shortfall between the insurance amount and the remaining balance on the loan (up to $40,000)
- Delivers the possibility to borrow supplementary funds to acquire an improved car
- Offers extra safeguard for your credit rating
- Consists of an added advantage that can make available a one-time reimbursement of up to $10,000 for any inconvenience underwent
- The premium covers you for the full duration of the loan and can be involved in the sum financed
Who does GAP Insurance suit?
GAP Insurance is appropriate for all clients who finance a vehicle and desire confidence, security and protection from financial exposure that may befall them, in the situation their vehicle be stolen or written off.
Over 200,000 cars are stolen every year and only 60% are recovered. Around 500,000 vehicles are involved in serious accidents every year. Vehicle crime is now one third of all crime. Your insurers will value your vehicle at the time of a claim, the offer they make will always be less than the price you paid. Vehicles depreciate from the moment you purchase them. A 3 year old vehicle may have lost as much as 60% of its value. Do you have Gap Insurance?
Want to know more?
To find out more about GAP Insurance or get a quote, please contact us via Live Chat or call us on 1300 558 887.
Exclusions and maximum claim limits may apply. For a full description of the benefits of Gap Insurance, and before making any decision in relation to any of the insurance products mentioned on this website, please refer to the relevant Product Disclosure Statement (PDS).