Gap Cover Insurance – Detailed

If your vehicle is stolen, written off, or the comprehensive insurer deems it at a total loss due to theft, fire or accident, Gap Cover Insurance insures the ‘gap’ between what the insurer will pay out as a value for your car, and what you owe on the finance contract.

A ‘gap’ may arise between the comprehensive insurer’s settlement amount and the related remaining loan balance, when you include purchase-related expenses such as stamp duty, registration, dealer delivery, or comprehensive insurance cover in the loan, which do not add to the vehicles value. Differences between vehicle depreciation rates and reductions in vehicle loan balances may also cause a shortfall.

What are the benefits of Gap Cover Insurance?

• Your financial exposure to a shortfall between the insurance payout and the outstanding balance on the loan (up to $20,000) is reduced or eliminated
• You have the potential to borrow additional funds to purchase a better vehicle
• Provides added protection for your credit rating
• Includes an additional benefit that can provide a one off payment of up to $10,000, depending on your policy cover
• The premium covers and protects you for the full term of the loan, and is generally included in the amount you finance

Who can benefit from Gap Cover Insurance?

Gap Cover Insurance is suitable for any client who finances a motor vehicle and wants peace of mind and protection from financial exposure that may occur should if their vehicle is stolen or written off.

Where can I find out more about Gap Cover Insurance?

CM Financial are always on hand to answer your questions. If you would like to know more about Gap Cover Insurance, please complete our online enquiry form or send us an email, and a consultant will call you back at a convenient time.