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Loan Equity Insurance (Gap Cover)

Heading Gap Cover

What Is GAP - Loan Equity 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 credit contract, and in the event of a total loss that credit 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 Include:

  • OptionMax Benefit*Additional Benefits
    1 $20,000 $5,500 
    2 $15,000 $4,500
    3 $10,000 $3,500
    4 $5,000 $1,500
    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.

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.

This is only a summary of cover; please see policy booklet for full terms, conditions and benefits.