Asset Protection is also known as GAP Cover and insures against any shortfall after a total loss event that is not covered by your Comprehensive Car Insurance. This is particularly important when there is finance on the vehicle and the balance is higher than the Comprehensive Insurance payout. This is common when purchasing a vehicle with little or no deposit. The combined effect of initial on-road costs, accrued loan interest & the depreciating value of the vehicle result in a shortfall which can amount to many thousands of dollars. Without Asset Protection this shortfall will need to be paid immediately to the finance company with your own money.
Benefits of Asset Protection Insurance
- Eliminates any debt on the vehicle you may have in the event of a total loss which is not covered by your comprehensive insurer.
- The once-off premium covers you for the whole term of your finance committment and can be financed
- An additional benefit (up to $5000) above the shortfall payout will be paid directly to you to be used for any purpose you choose.
- Protects your credit rating should you not have the funds immediately available to cover any shortfall.
Asset Protection Insurance needs to be taken at the time when you purchase a vehicle, to ensure you have the appropriate cover call 360 Financial today on 1300 361 360.