Gap Insurance or Shortfall Insurance

Gap Insurance is also know as Shortfall Insurance. This type of insurance provides peace of mind by protecting you and your asset from certain losses in the future.

What is Gap Insurance?

If your car, boat, caravan, truck or plant and equipment is stolen or written off, often there will be a 'shortfall' or 'gap'. This shortfall occurs because vehicles depreciate over the life of a loan. The shortfall will be the difference between the amount you must pay the finance company (the loan pay-out amount) and the amount that will be paid to you by your comprehensive insurer (what the vehicle is now worth). This shortfall can be in the thousands of dollars and is the amount you must now pay to your lender. You could end up with no asset as (its been written off or stolen) AND an unpaid finance contract.

Include your premium in your loan amount

Gap Insurance policies are a one-off premium that are due at the beginning of your loan term. The premium amount can be included in your finance amount and paid off over the life of your vehicle loan. Including your premium in your loan is a very economical way to ensure peace of mind.

How can I minimise the 'Gap'?

An easy way to minimise this 'gap' is to comprehensively insure your vehicle for a fixed value. When insuring your car you have a choice to comprehensively insure it at either market value or for an agreed fixed value.

Gap Insurance provides three things for you...

1. Pays out the shortfall to the finance company- up to certain limits, several gap policies are available to ensure you are adequately covered, but not over insured.
2. Can provide you with some funds towards a replacement vehicle/asset.
3. Some transfer costs are paid for you.

Benefits

Helps you recover from a shortfall by providing payment to your insurer.
Helps you recover from a shortfall by contributing funds towards your replacement vehicle purchase*.
Keeps your credit rating intact.
Keeps you mobile in a new vehicle.
The premium can be included in your regular loan repayments.

Gap Insurance or Shortfall Insurance | AAA Finance and Insurance

Apply for Insurance

Call one of our Experience AAA Insurance Experts to discuss your insurance needs on (07) 5493 1222. Alternatively enquire online and one of our insurance experts will be in touch.

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*Conditions apply

Jemma Pudwell

15 February 2024

We have used Jase from AAA Finance twice in the last 12 months, and he has been great to deal with. Communication was great, he was very proactive especially if anything may come up and were very quick in getting it all sorted in the best possible way to suite our situation. Highly recommend and will use Jase again in the future.

Ryan Smith

14 February 2024

Just finished my process with Ray from AAA finance. The man is unbelievably genuine and taught me so much throughout the process. This wasn't just about securing my finance and Ray showed that through immaculate service. Ray has educated me and shed light onto future projects only confirming where I'll be taking my business in the future. Absolutely phenomenal and wouldn't even consider using anyone else. Thanks again Ray!

Wayne Roby

29 January 2024

AAA were awesome at helping me out of a tight situation (and with bad credit file) ! they were friendly and quick to respond. i would highly recommend them

Ree PAPMS

23 January 2024

Jason was professional, organised and very helpful in regards to the loan for camper van. I am very grateful to have spoken to someone who managed the process so easily, flexibly and was able to provide solutions. Thank you

Emily Dimitriou

10 December 2023

Jason has been absolutely wonderful to deal with and we couldnt be happier with his service. Top notch 😊

Katherine Menadue

15 November 2023

I have just secured a loan through AAA Finance and Insurance to invest in an emerging business O2 for life. The whole process was simple and quick. Ray Wilson was excellent, available at all times to help with any queries. I would strongly recommend Ray and his business for any finance requirements.

Breanna Carr

26 October 2023

They are so easy to talk to, answered every question I asked no matter what question it was and they were just great.

Christopher Dyke

17 October 2023

Getting finance is a big step to take and can be a bit daunting. AAA Finance makes the process so easy, which is the reason why I am a repeat client having now purchased multiple vehicles through using their service. You get genuine service from an honest team and assured you are looked after. Give them a go once, it’s all you’ll need!! Thanks AAA Finance!!

Marissa Carr

12 October 2023

Ray has been absolutely amazing. Thank you