Guaranteed asset protection with gap cover
As something that is often overlooked, gap insurance is possibly one of the most beneficial policies that a car owner could ever purchase.
This is due to the fact that there is often a difference between what is owing to the finance company and what your insurance company may pay out on insurance. Due to depreciation there may be a shortfall between a payout received from your motor vehicle insurer and the remaining balance owed to your financier in the event of a total loss. Particularly if you have market value insurance.
It’s common knowledge that a car is not often something that one buys as an investment. You are probably already aware that a new car can lose up to 20% of its value the minute you drive it away from the dealership. This is not exclusive to new cars, as used cars also quickly and inevitably lose their value. Financing a car is also very likely accompanied by a bundle of additional costs that, once paid for, cannot be recouped, including the likes of GST, Dealer delivery fees, Dealer margins and registration and other on road costs.
What is gap cover? Also known as shortfall insurance, Guaranteed Asset Protection is a safety net that accounts for the difference between the actual insurance payout if your car is written off or stolen and not recovered value of a vehicle and the balance still owed on your car’s financing plan in the event of a total loss (this is subject to policy limits and the cover chosen). Just as with any product or service purchased on credit, the applicant may owe more than the vehicle is actually worth. If your car is stolen or written off in an accident, gap insurance will help to pay off the balance of the loan, which may equate to thousands of dollars. Your car loan gap insurance may cover this shortfall amount up to the stipulated policy limit or level of gap cover chosen.
Yes Loans has access to companies that provide comprehensive gap cover insurance with benefits that put you, the client, first. The finance gap insurance premium for any one of your cars can be also included in your loan payment cost, subject to approval from your financier.
All insurers have varying plans and policies regarding the cover you have chosen, resulting in differing benefits and limits. Thus, it remains important to read the Product Disclosure Statement from your product issuer to ensure that the policy selected serves suitable for you.
With Yes Loans, applying for car gap insurance is quick and easy. We highly recommend shortfall insurance, which is why our application process was built around convenience, saving you time and allowing for a quick response that will get you covered without the usual hassle.
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