Our Shortfall Plus policy protects you if your outstanding loan amount is higher than your cars value when it is stolen and not recovered or damaged beyond economical repair. Vehicle shortfall cover will cover the difference between the cars retail value and the amount you still owe on your loan.
If the car that we insure comprehensively for you is financed by a financial institution and its written-off stolen or hi-jacked then shortfall cover pays the amount that you still owe the financer after weve settled the claim.
Car insurance shortfall cover. What Is a Shortfall Cover. Credit shortfall insurance which people also call top-up or gap insurance covers this gap so you dont have debt on a vehicle you no longer own. This type of cover is usually offered as an optional add-on when you take out insurance for your car and most insurers or finance companies offer it as part of their vehicle cover.
Shortfall cover ensures that you dont end up out of pocket if your financed car is written off or stolen. Up to R10 000 of your comprehensive excess covered. Sound system and added car accessories are not usually included in shortfall covers.
Credit shortfall insurance also called top-up or gap insurance is designed to cover this gap so you dont have debt on a vehicle you no longer own. Adcover takes care of the shortfall between your comprehensive car insurance pay out and the settlement amount owed to the finance house bank according to your finance agreement if your car is stolen hijacked or written off. Your car insurance company will also pay for balloon payments Bear in mind if you had to refinance your debt before the event takes places shortfall cover wont take it into account.
It ensures that you dont end up out of pocket if your financed car is written off or stolen. Car shortfall insurance Make sure youre covered for the difference between your comprehensive insurance payout and the amount you still owe on your car or motorbike if. Credit shortfall insurance protects you from these types of scenarios covering the shortfall between what you still owe and what youll get out from your normal car insurance.
Top-up cover or credit shortfall insurance is usually offered as an optional add-on to your vehicle cover when you buy a car. What is included in this car cover and whats not. Shortfall Protection provides valuable cover by paying the difference between your comprehensive insurance pay-out and the amount still owing to your finance company in the event of your car being written off or stolen.
It is advisable to add optional credit shortfall insurance to your policy particularly with new cars but also on any vehicle purchase where a credit shortfall might arise. This cover must be noted on your policy. In the insurance industry shortfall cover refers to a type of reinsurance arrangement in which one party agrees to cover a specific gap in the existing insurance.
Shortfall Plus covers you in the event of a total loss of your car. Shortfall Insurance also known as GAP insurance covers you against any shortfall in funds between your loan and an insurance payout in the event where your vehicle is declared a Total Loss written off or stolen. Having taken out an Vehicle Shortfall Insurance policy Mr Knox was protected in the event his vehicle was written off as a result of accidental damage fire or theft.
As such a cheque for 2338 was subsequently issued to Mr Knox to cover the shortfall. Protecting you from having less money available should you need to replace your car and ensuring that you dont have to keep paying off a car that you dont even own anymore. It pays out the difference between what your car is insured for and.
The advantage of buying a second-hand car over a brand new car is that the value of the new car you just bought will drop substantially the moment you drive it out of the showroom door. Shortfall cover also known as gap cover or top-up cover bridges the gap between the money you still owe on your car and the amount your insurer pays out which is based on the value of your car at the time of the claim. It is advisable to add this optional extra to your policy particularly with new cars but also on any vehicle purchase where a credit shortfall might arise.
Credit shortfall insurance will cover you for any shortfall between the amount you owe on your financing loan and what you are paid out if a car is deemed beyond economic repair following an accident or if stolen. Get an adcover quote. What is Shortfall Cover or GAP Insurance and why might you need it.
Mr Knox – Leeds. What is shortfall cover car insurance. Vehicle financing usually entails high financing charges most of which comprise the interest on your loan over the repayment period.
Our Shortfall Protection insurance policy highlights include. It only covers your initial payment schedule. Shortfall cover also known as gap cover or top-up cover bridges the gap between the money you still owe on your car and the amount your insurer pays out.
This is a standalone policy that is purchased in addition to a Volkswagen Comprehensive Insurance.