Loan Protection Insurance
The risks with having finance for your car, is if something happens to your ability to earn money or your car gets written off, then you might find it difficult to manage financially.
This policy is designed to help protect you, your family and your savings, if something like that happens to you.
What is LPI?
Autosure Loan Protection Insurance (LPI) protects you for the repayment of your loan obligations to your lender if you suffer an insured event.
Insured Events
Severe Life Impact
Temporary Loss of Income
Shortfall
Death, terminal illness, total and permanent disablement, severe illness or injury, bed confinement
Serious illness, disabled, family carer, redundancy, employer ceases trading, industrial action, business interruption
Total loss of your car (and your insurance payout is less than what you owe on your loan)
Key Benefits of Autosure Loan Protection Insurance
- Individual & joint cover
- You don’t need a medical examination
- Additional Benefits to help cover your expenses related to your claim
- Options for employed, self-employed & retired people
- If your car is a total loss, you can claim Shortfall additional benefits, even if there is no shortfall on your loan
Important information
- ACC: Only covers accidents, but we can protect you against many different events
- Claim payments: We pay directly to your finance company
- Prerequisites: The loan and comprehensive insurance for that one car must be in place
- Exclusions: See the policy wording What You Are Not Insured For section
- Cancellations: Cancel within 30 days for a refund, if you haven’t claimed. Additionally you can cancel and get a partial refund, if you repay your loan early or no longer need the cover
This is a summary only. See the policy wording for full terms, conditions, exclusions, limits and benefits.
Why choose Autosure for Loan Protection Insurance?
Autosure has been helping New Zealanders protect their cars and their savings from the cost of unexpected breakdowns for decades. As a leading insurance company in the loan protection insurance industry, we strive to bring our customers the best products with the best benefits, so you can have confidence for the road ahead.
“It was so easy and straight forward when I needed my car loan payments made for a few months. They knew what I was going through and wanted to do. I’d say use them.”
June T
Policy document
This is our current policy wording – please contact us if you would like a copy of a previous policy document or schedule.
FAQs about loan protection insurance NZ
LPI is designed to protect your loan – and your peace of mind – when life takes an unexpected turn.
Depending on your cover, LPI can help repay your loan if you experience a Severe Life Impact (such as death, terminal illness, total permanent disablement or severe illness), a Temporary Loss of Income (including serious illness, disability, redundancy or business interruption), or a Shortfall if your car is written off and your motor insurer pays less than what you owe.
To take out LPI, you need to have a car loan and comprehensive motor vehicle insurance for your car.
There are options for employed, self-employed and retired people.
Some cover options depend on your employment status e.g. redundancy cover requires at least 90 days of full‑time permanent employment.
Cover for Severe Life Impact and Temporary Loss of Income ends before your 70th birthday.
LPI doesn’t cover claims related to alcohol or drug use, criminal activity, elective treatments, hazardous activities, natural disasters, pandemics, pregnancy‑related events, or pre‑existing conditions (for Severe Life Impact and Temporary Loss of Income).
These exclusions ensure your policy remains fair and sustainable.
Shortfall cover has fewer exclusions and is not affected by events like natural disasters or pandemics.
If your car is declared a total loss, Shortfall cover helps bridge the gap between your comprehensive motor vehilce insurance payout and the balance of your loan – paying the difference directly to your lender (up to the limits in your policy).
You may also receive a range of additional benefits such as reimbursement for insurance excess, outstanding insurance premiums, negative equity, transport costs and replacement vehicle expenses – even if there’s no actual shortfall.
Yes, Autosure offers a 30‑day free look period, giving you time to make sure the cover is right for you.
If you cancel within 30 days and haven’t made a claim, you’ll receive a full refund of the premium you’ve paid.
After 30 days, you can still cancel at any time with 10 days’ notice, and any refund will be calculated based on the remaining policy term.
If your premium was added to your loan, refunds are made directly to your lender.
These policies are underwritten by Autosure Insurance Limited. Find out more about Autosure’s financial strength rating.
Autosure Insurance Limited is a member of the Financial Services Federation. Find out about their Responsible Credit-Related Insurance Code.