Gap Cover Insurance

Mind the Gap

Gap Insurance protects the borrower by paying the shortfall to the financier, in the event that the borrower has a total loss due to:

  • Accident

  • Theft or damage

    • When you borrow money to purchase a motor vehicle, you may be exposed to an insurance (GAP) short fall. This gap is the difference between the insured value of the vehicle and the pay out to the lender. Gap insurance is only available when a vehicle is comprehensively insured and when you (client) enter into a new loan contract at time of purchase.

    Problem

    Your car has been written off, either stolen or damaged beyond repair. Your comprehensive insurer pays the market or agreed value, but another $4,200 “gap” is needed to pay out your loan.

    Solution

    GAP insurance could save you from a huge financial burden. Cover is provided for ‘the gap’ up to $10,000. It also provides the option of extra cover for any additional costs due to the inconvenience of the total loss, such as registration and insurance costs for the replacement vehicle.

    Why does the ‘GAP’ occur?

    Several factors are involved:

  • Borrowing to pay for various costs associated with buying a car such as registration or stamp duty

  • Comprehensive insurance premium

  • Consumer credit insurance premium

  • No deposit or trade-in at purchase

  • Depreciation of the value of the asset falling faster than the loan payout

    • There are various levels of coverage for gap insurance, please refer to the attached Insurer PDS.

    Please contact us for all your financing needs. Your approval is our priority!