Gap or Shortfall Insurance
Car finance insurance
Gap insurance is often overlooked and it is one of the most beneficial policies to purchase. Our experienced finance consultants can source an excellent shortfall insurance plan that will bring you long-term value for just a few extra dollars per repayment.
How it works
If your vehicle is written off in an accident, there may be a shortfall between the amount you have left to pay out your loan and the amount that will be paid by your comprehensive motor insurer. This shortfall can equate to thousands of dollars in some cases, and becomes your responsibility to pay this difference. Your car loan gap insurance will cover this shortfall amount up to the stipulated policy limit or level of GAP cover chosen.
Example: Where your comprehensive car insurance cover pays out $25,000 after your car has been written off and there is a balance of $32,000 owing to the finance company. The gap cover insurance will pay the difference of $7,000.
How you benefit from gap cover insurance
Any difference is paid directly to the loan company on your behalf from your policy
The extra funds may be used to assist you in purchasing a new vehicle subject to policy limits and benefits payable.
Provides convenience by making payments directly to any parties involved
Helps you keep a good credit rating as you don’t have to go into further debt to pay for the shortfall
Allows you to get back on your feet quickly in a new vehicle after an accident
- The car finance gap insurance premium can be included in your loan repayment cost subject to affordability.
We say YES more often!
Yes Loans recommends gap insurance. The shortfall insurance product we offer covers you and your vehicle for the entire duration of the loan. Additionally, it works with all insurers and provides added peace of mind for you and your family.
Depending on the type of policy and product issuer you choose, the policy may make the following necessary payments:
12 months of motor vehicle insurance on your next car
Stamp duty and transfer on your next vehicle
- Private expenses of up to $7,500
Like all insurances, different plans vary according to the cover you have chosen, so the benefits and limits may differ. It is important to read the Product Disclosure Statement from the product issuer to ensure the policy selected is right for you.
Contact Yes Loans to arrange quality and valuable gap insurance.