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

John Shanahan

3 May 2023

We worked with Jason to arrange finance for our Austrack van. Jason's service, knowledge and understanding was fantastic. Great outcome and can't wait to get into our van! Thanks Jase.

Robbie Amhaz

10 March 2023

I Have been with AAA for many years now and they have always been my go too broker for personal loans. Peter & Jason always go the extra mile for me as a client and their rates & fees are competitive. We recently purchased a brand-new car and AAA got us the loan we wanted and at the right interest rate. Excellent service and industry knowledge. Thanks Again Robbie Amhaz

Paul Mansell

18 August 2022

These guys go above and beyond. I would recommend them to anyone.

Wayne Jones

27 July 2022

Warwick provided a very simple platform to execute our business with him,nothing was a issue and he was very prompt getting back to us or returning calls,highly recommend AAA Finance

Corey

11 July 2022

The team at AAA made the finance application process incredibly smooth and stress-free, handling all of the otherwise difficult paperwork with the lender and seller. We have used them multiple times now and have never been disappointed!

Lyndon D

9 December 2021

We had Jaime as our broker and wow! She did such a great job. 10/10 customer service! Answered every question, gave us all the advice we needed. Can’t fault anything at all. Thank you Jaime !

Bianca Bloomfield

9 November 2021

These guys were fantastic ! - Jaime was prompt, professional and kept me in the loop while the finance boxs were ticked in the background. This was all done very quickly and they were super competitive in the market, which was awesome, when there was additional requirements she was straight on the phone-Highly recommend !!

Larna Kerswell

14 October 2021

Warwick at AAA Finance was so easy and great to deal with. He was patient and helpful with us every step of the way. We would recommend them to anyone looking around for finance. Thank you so mauch Warwick and AAA Finance.

Donna Joy

23 September 2021

I was very happy with the excellent service given by Sam Sharpe. He was helpful, polite and easy to understand. Thanks Sam 😃