Insurance & Protection Options

When you’re looking to finance a big purchase it’s not just the different types of loans and leases that you need to consider there are the insurances too. There are plenty of options when it comes to helping to protect you and your asset.

The Available Products

There can be lots of different names and terminology used to describe the products but essentially there are up to 5 options that you have access to:

  1. Comprehensive Insurance
  2. Warranty
  3. Loan Protection
  4. GAP
  5. Roadside Assistance

Comprehensive Insurance

Summary Of Protection Provided

Comprehensive insurance covers you for damage to your asset, as well as loss and theft of your asset and damage to other people’s property such as their vehicle.

Things To Consider

  • If you are using your asset as security for your loan or lease then the lender will normally require the asset to be comprehensively insured.
  • Younger and less experienced users will generally face higher premium costs.
  • Your history including any accidents, infringements and demerit points will affect the cost of your premium. The more adverse history that you have the higher the premium will generally be.

Extended Warranty

Summary Of Protection Provided

Extended warranties provide coverage beyond the manufacturer’s warranty period in the event that your asset experiences an unexpected mechanical failure. The cost of the required repairs, including replacement parts and labour, may be paid for.

Things To Consider

  • If you do not get the asset serviced as per the requirements outlined in the warranty’s terms and conditions the cover will normally be voided.
  • Wear and tear and consumable items such as oil, replacement bulbs etc. are not covered by warranties.

Loan Protection

Summary Of Protection Provided

Loan protection pays or contributes to your loan repayments if you are unable to work due to injury, illness or involuntary unemployment. It also repays the outstanding finance amount in the event of death. Other variations are available which involve handing back the asset and having the outstanding finance paid.

Things To Consider

  • Any benefits payable from a claim are paid directly to the lender, not to you.
  • In the event of redundancy, a cover is usually not provided if you volunteer to leave your employment or if you are dismissed from your duties for being unsuitable for the position.
  • If the policy is an insurance product then a rebate is usually automatically included in the payout figure quoted by the lender if you are looking to pay off your finance early.

GAP

Summary Of Protection Provided

If your asset is declared a total loss write off as a result of an accident or theft before you have paid off your finance, gap is designed to cover the difference between what your comprehensive insurer pays and the amount still owing on the finance (up to a specified limit).

Things To Consider

  • Any shortfall benefits payable from a claim are paid directly to the lender, not to you. Any additional benefits would be paid to you.
  • The value of the majority of vehicles and other assets depreciate quite considerably over time, often more quickly than the outstanding finance reduces. This means that you can be at risk of owing more on your finance than your asset is worth for a substantial period of your loan or lease term. This is a greater risk if you have taken out your finance over a long period (5 years +) and you’re putting in $0 or minimal deposit.
  • If you use your asset for hire or reward e.g. taxi, courier etc. you may not qualify for cover.

Roadside Assistance

Summary Of Protection Provided

Assistance if your vehicle breaks down.

Things To Consider

  • Check to ensure that it provides 24-hour coverage, 7 days a week across regions that you are likely to travel to.

Contact Us Today for More Information and Free No Obligation Quotes.