GAP Insurance
Download PDSGAP is the gap in coverage between how much one owes on a car and how much the car is worth. GAP insurance is necessary in almost all cases and is relatively low cost. GAP insurance is a must if you are buying or leasing a new vehicle and should not be something that you decided to skip to cut costs.
GAP Insurance protects you against losses that can arise when the amount of compensation received from your Comprehensive Motor Insurance does not fully cover the amount the insured owes on the vehicle's financing or lease agreement. This situation arises when the balance owed on a car loan is greater than the book value of the vehicle.
- $15,000 cover for the difference between the comprehensive motor insurance payout (i.e. Market Value) and the total amount outstanding on the finance contract at date of loss
- The following benefits are included in the $15,000 cover:
- Competitive pricing & attractive benefits
- Provides peace of mind about meeting your financial obligations in the event of a total loss to your vehicle
- Insurance cost can be packaged in to your regular monthly lease / loan repayments
- Cover lasts for the life of the lease contract (even if you decide to change jobs and retain the vehicle)
To be eligible for GAP Insurance the customer must first have Comprehensive Motor Insurance cover.
The maximum premium you can charge a customer for GAP Insurance is $955.00. The premium is a one-off up-front payment which covers the Insured for the life of the lease/loan.
| Term (months) | Premium per $1,000 financed |
| Motor excess cover | We will cover the comprehensive motor insurance excess, to a maximum of $1,000 |
| Insurance premium cover | We will cover the replacement vehicle comprehensive motor insurance premium to a maximum of $1,000 |
| Vehicle hire costs cover | Should vehicle hire costs cover provided by the comprehensive motor policy be exhausted, We will provide a further 14 days cover to a maximum of $100/day |
| Personal effects cover | Should personal effects cover provided by the comprehensive motor policy be exhausted, We will provide a further $1,500 cover |
