Loan Protection Insurance or Consumer Credit Insurance (CCI)
Loan Protection Insurance is also known as Consumer Credit Insurance. This type of insurance provides loan repayment cover for certain events outside of your control*. These events include involuntary unemployment, accident, sickness and even death. Loan Protection Insurance is a one-off insurance premium that is spread over the life of a loan contract.
Why do I need Loan Protection Insurance?
Under your vehicle finance agreement, regular loan repayments must be made to pay off the vehicle purchase. If you fail to make these loan payments, the financier may take action against yourself or your family. You may lose your car as well as having a default listed on your credit file. The finance company will repossess the vehicle and then sell it at auction. The sale proceeds are used to pay out the loan and any remaining funds are deposited back to you. Basically you have no car, no funds and a damaged credit file.
With this type of insurance if you cannot make your loan repayments, due to an insurable event outside of your control, then the insurer will make your loan repayments on your behalf. The vehicle remains in your possession with loan repayments occurring until such time as agreed upon as per your policy. As an added bonus, your credit file remains intact.
Benefits of Loan Protection Insurance
- In the event of Involuntary unemployment, repayments are made on your loan up to a specified level*.
- If you are unable to work due to accident or sickness, then loan repayments are made for a set period*.
- Life cover will pay the entire balance in the event of death*.
Apply for Insurance
AAA Finance and Insurance can customise an insurance solution to suit your needs. Call and speak to one of our experienced insurance experts on (07) 5493 1222 to discuss your insurance needs. Alternatively, make an online enquiry and one of our team will be in contact promptly.