GAP Protection

Guaranteed Asset Protection (GAP) can protect you from the exposure that may occur when the comprehensive insurance payout does not cover the loan balance still owing on your car finance.

Madison Finance offers an affordable and practical GAP insurance solution to reduce your financial exposure and can provide cover up to $20,000.

It can also compensate you for the financial inconvenience suffered as a result of a total loss. In the event of an accident and your motor vehicle being declared a total loss, the comprehensive insurance payout may not cover the balance required to finalise your car finance agreement. In this instance, you are liable for the shortfall on your car finance, which could be thousands of dollars.

This shortfall can occur due to borrowing to pay for various costs associated with buying a vehicle, which do not add to the vehicles value, such as stamp duty, registration, dealer delivery, comprehensive insurance cover, vehicle inspections and so on. As these costs do not add to the vehicle's value, the outstanding loan amount may exceed the insured value of the vehicle.

The range of product options include Benefits Plus which can provide a cash payment of up to $5,000 to compensate for the inconvenience suffered in this situation, such as the cost of a hire vehicle or the stamp duty and registration fees on a new vehicle.

News Tags: car finance, dealer car finance, car finance broker

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