Shortfall Gap Cover
What is Shortfall Gap Cover?
Shortfall Gap Cover (Also known as Motor Equity) covers you in the event that your vehicle is written off, it pays the difference between the total loss payout you receive from your comprehensive insurer and the remaining balance of your loan. Once your insurer pays the financier the amount of the total loss, the financier will request the loan to be finalised (as there is no longer security behind the loan). The Gap cover pays the remaining difference between the amount the comprehensive insurer pays, and the remaining balance (inclusive of fees, interest, etc.) to the amount chosen in your policy, usually finalising your loan and saving you thousands of dollars. See diagram for more info
Who should get Gap Cover?
Gap cover is recommended for anyone that is financing a large portion, if not all, of their vehicle and is taking out comprehensive insurance. This will give them the piece of mind knowing it is written off then their shortfall will be taken care of up to the limit of the policy chosen. Before making any decision on
Gap Cover can be included in your finance package and will generally only adjust your payments a few dollars a week. Speak to one of our Rostron Finance specialists about the different covers, exclusions and maximum claim limits before making a decision if this is right for you. We can supply you with a Product Disclosure Statement and discuss with you about including Gap Cover in your finance package today.