GAP insurance

When the total loss payment made by the comprehensive motor vehicle insurer is insufficient to pay the loan contract

Motor Equity Insurance (MEI) is designed to pay the financier any outstanding balance on a loan contract (up to the policy limit) where the total loss payment made by the comprehensive motor vehicle insurer is insufficient to pay the loan contract.

To be eligible for Motor Equity Insurance, you must: 

  • be subject to a loan contract; and
  • have comprehensive motor vehicle insurance.

Loan Settlement Cover

If the comprehensive motor vehicle insurer makes a total loss payment in respect of the vehicle and the event causing the loss occurs during the period of insurance, our insurers will pay to the financier any outstanding difference between:

  • the loan settlement amount; and
  • the market value or agreed value of the vehicle [whichever is applicable] as determined by the comprehensive motor vehicle insurer,  subject to the limit prescribed by the cover chosen by the customer and excluding certain amounts such as arrears.

Extra Cover

If the comprehensive motor vehicle insurer makes total loss payment in respect to the customer's vehicle and the event causing the loss occurs during the period of insurance, we will also pay the following costs incurred as a result of the total loss claim:

  • any excess paid under the comprehensive motor vehicle insurance; and
  • any of the following costs incurred as a result of replacing your vehicle (provided they are not payable under the comprehensive motor vehicle insurance):
  • delivery charges;
  • registration costs;
  • comprehensive motor vehicle insurance premium;
  • compulsory third party insurance ;
  • stamp duty;
  • up to 10 days car hire up to a maximum of $70 per day, but only if the car hire has been arranged or approved by us.

The maximum aggregate amount we will pay under Extra Cover will be the amount shown against "Extras" for the Option listed on the customer's schedule.