What is asset protection insurance?
If your comprehensively insured vehicle is written off (declared a total loss) as a result of accident or theft, you may find that the payout from your comprehensive insurer, when your claim is accepted is less than what you owe your credit provider for your vehicle.
Asset Protection Insurance is a policy that will help you avoid having to pay any shortfall between what your comprehensive insurer pays out and what you still owe your credit provider for your vehicle.
Asset Protection Insurance is purchased at the time you arrange your finance contract. The cost of the insurance is called the premium. The premium is a once only payment that covers the entire term of the finance contract. It is paid at the start of the finance contract and is usually financed as part of the finance contract. The amount of premium payable is shown on your Application/Certificate of Insurance.
The amount of premium payable includes GST and Stamp Duty and will vary depending on the level of cover you select and the term of your finance contract.
What are the benefits of Asset Protection Insurance
Extra cover for out-of-pocket expenses
5 year fixed term (policy does not end when loan is paid out)
Can be paid monthly
Different levels of cover, designed to suit your needs
If your insurance gives you a new vehicle instead of a payout you can transfer this policy to your new vehicle or ask for a refund.
Reduces or eliminates your financial exposure.
Improves credit position to be able to finance a vehicle of higher value as the finance company has protection.
Includes an additional lump sums towards on road costs for replacement vehicles.
A one off payment covering you for the life of your loan that can be incorporated into your finance package
Should I get Asset Protection Insurance?
By having an Asset Protection Insurance policy in place you are protecting yourself against the potential shortfall that may occur between the purchase price of your vehicle and your comprehensive motor vehicle insurance payout if your vehicle is declared a total insurance loss or write off. This means you’ll be able to afford a replacement car similar to what you were driving, without experiencing any additional costs or finance increase.
What's the Yellow Line?
Equity Protection Insurance should be strongly considered by all customers who finance a motor vehicle and want peace of mind and protection from financial exposure should their vehicle be stolen or written off.
One of our insurance specialists can provide you with all the information you need to make the decision on the best insurance cover for you.
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