Gap Insurance or Shortfall Insurance
Gap Insurance is also know as Shortfall Insurance. Gap 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 your loan. The shortfall will be between the amount you must pay the finance company (what you paid for the vehicle) 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 pay to your lender. You could possibly end up with a finance contract still unpaid, and no asset, as it has been written off or stolen.
Gap Insurance Policies are a one off premium, normally financed over the term of your loan making it a very economical cover to ensure peace of mind.
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 of Gap Insurance
- 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.
Apply for Gap Insurance
Call one of our Experience AAA Insurance Experts to discuss your Insurance needs on (07) 5493 1222. Or Enquire Now online.