Guaranteed Asset Protection (GAP)
What is GAP - Loan Enquiry Insurance
The 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. GAP can only be purchased in conjunction with a finance contract, and in the event of a total loss that the finance contract must still be active. The vehicle must be comprehensively insured
- The contract is for a maximum of 60 months or the length of the original credit contact.
- Can only be taken out at the time of vehicle sale.
- Additional benefits only apply to Options 1, 2 and 3.
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.
A GAP STORY - ONCE UPON A TIME, NOT SO LONG AGO...
Paul bought a 2013 Mazda Axela for $12,985
A few months later it was stolen and burnt out
After Pauls insurance paid to the finance company what they valued the vehicle at, Paul had no car, plus he still owed $3,000 on his car loan
Luckily Paul was paid the $3,000 shortfall and $500 excess on his Insurance policy, plus they gave Paul a $1,000 deposit for his new car
Paul was very happy with his new Mazda Axela
* Names and details have been changed to protect privacy. *This is a summary of cover, please see policy booklet for full terms, exclusions, conditions and benefits.