GAP Cover – Loan Equity Insurance

An Autosure GAP policy covers some of the difference (the gap) between a total loss payout on your vehicle by your comprehensive insurer and the balance owing under your credit contract. This is called a loan equity shortfall.

Finance

GAP can only be purchased in conjunction with a credit contract and in the event of a total loss that credit contract must still be active.

Insurance

The vehicle must be comprehensively insured.

Timeframe

The contract is for a maximum of 60 months or the length of the original credit contact.

Redeemable Period

Can only be taken out at the time of vehicle sale.

Example of a GAP Claim

You have an accident in your vehicle and the comprehensive insurer deems the vehicle to be a total loss. The insurer pays out to the financier, leaving a $5000 outstanding balance on your credit contract that you are liable for and which must be paid immediately. If you had GAP Cover, it would provide a payment of the outstanding amount less the comprehensive insurance premium and the original GAP Cover premium saving you potentially thousands*.

Purchasing a replacement vehicle can also be an expensive exercise which is where the additional benefits under options 1, 2 and 3 really help out.

*Example only. There may be other deductions depending on the status of your credit contract.

Additional Benefits Include:

Comprehensive Motor Vehicle insurance premium in relation to the replacement vehicle.
Any Excess in relation to the total loss vehicle.
On Road Costs comprising of dealer delivery and registration related to the purchase of the replacement vehicle.
Deposit for a replacement vehicle up to $1000.
Reimbursement for out of pocket expenses up to $200
Any amount relating to a prior debt included in the credit contract.
Reimbursement for the cost of hiring a rental vehicle for a maximum of 5 days.
Additional benefits only apply to Options 1, 2 and 3.

Option
1
2
3
4

Max Benefit
$20,000
$15,000
$10,000
$5,000

Additional Benefits
$5,000
$4,000
$3,000
$1,000

If you are interested in finding out more about the GAP – Loan Equity Insurance cover and how it can apply to your vehicle purchase, please contact our Business Manager on 03 377 7144 or via our contact form.

GAP Cover – Loan Equity Insurance

Finance

Insurance

Timeframe

Redeemable Period

Example of a GAP Claim

Additional Benefits Include:

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