Gap Insurance
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  1. Get up to $15,000 cover!
  2. Cover is available for the term of your loan.
  3. Speak to an insurance specialist today!
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Guaranteed Asset Protection (GAP) Insurance


Guaranteed Asset Protection

GAP Insurance car

Who pays out your loan if you have a financed vehicle that is damaged beyond reasonable repair or stolen? ERIC Insurance has just the product.
Like most mechanical items we buy, a car’s value reduces from the very first day we purchase it. The principle amount usually remains high during the early period of the loan until we begin to get ahead of the interest.
In the event that the car is damaged beyond repair or stolen & not recovered the market value may be less than the amount still owed to your financier.
This difference we call ‘GAP’ and is why most customers choose this insurance option when arranging their standard loan because this GAP will get taken care of to a value of up to $15,000 and in addition pay up to $4,000 for any incidental out of pocket expenses.

gap

Gap Insurance

Download Gap Insurance Pdf Brochure.

Download PDS

cci

Gap Insurance Claim Form

Download Gap Insurance Pdf Claim Form

Download PDS

SUMMARY OF COVERS

The table below summarises the key benefits of each level of cover.
The following types of cover only apply if the Policy Schedule shows that it applies and You have paid or agreed to pay the Premium for it. You will need to select the appropriate type of cover based on Your needs.
Please note that this is a limited summary only and not a full description of the covers. Each cover noted is subject to terms, conditions, exclusions and limitations that are not listed in the summary. You need to read the full terms, conditions  and  exclusions  of  the  Policy  and  the  Policy  Schedule  which  specifies  the  options  taken  for  a  full explanation of the cover.

 

CoveLevel

 

Maximum Shortfall Benefit

 

Maximum Additional Benefits (with shortfall)

 

Maximum No Shortfall Benefit

 
Cover 1
 
$15,000
 
$4,000
 
$2,000
 
Cover 2
 
$10,000
 
$2,500
 
$2,000
 
Cover 3
 
$7,500
 
$1,000
 
$1,000
 
Cover 4
 
$5,000
 
$500
 
$500
ELIGIBILITY

You are only eligible for cover under the Policy if You meet the following eligibility criteria:
You must be at least 18 years of age at the commencement of the Period of Insurance.
Your Vehicle must be covered by this Comprehensive Vehicle Insurance Policy for the term of this cover. The Finance Contract must be for one of the following:

a motor Vehicle with a carrying capacity less than 2 tonnes;
a motorcycle;
a boat;
a caravan;
trailered pleasure craft;
campervans; or
any other vehicle approved by Us.

The Policy specifically excludes any Vehicle that is let on hire or is being used for carrying passengers for hire or reward. This includes taxis and rental cars. It also specifically excludes courier or delivery Vehicles, including fast food delivery.


HOW DOES GUARANTEED ASSET PROTECTION INSURANCE (GAP) BENEFIT YOU? (COVER PROVIDED)

Where we agree to enter into a Policy with You, We will, during the Period of Insurance, insure you under the Policy for the type of cover selected and stated on the Policy Schedule, subject to the terms, conditions, benefit limits and exclusions of the Policy.

If Your Vehicle is declared a Total Loss by Your Comprehensive Vehicle Insurer then, following the Total Loss Payout being made to Your Financier by Your Comprehensive Vehicle Insurer, We will in the event that there is a Shortfall or debt remaining under Your Finance Contract, pay the Financier the amount of the Shortfall up to the maximum Shortfall amount payable.
An example:
If Your Vehicle was declared a Total Loss and the Finance Contract payout figure was $27,500, the Comprehensive Vehicle Insurer payout figure may be less, for example, $22,500 (after deduction of relevant excesses or overdue premiums). In this example, We will pay Your Financier up to $5,000 (if You had selected Cover 4).
In addition to the Shortfall, You may wish to select a Cover Option that covers certain other out-of-pocket expenses (Additional Benefits) if Your Vehicle is declared a Total Loss. Depending on Your needs, You may choose one of four (4) levels of Cover below.
We also provide some additional benefits under the Policy in the event of a valid claim to assist with the cost in relation to a replacement vehicle.


MAXIMUM SHORTFALL AMOUNT PAYABLE

The maximum Shortfall amount We will pay in the event of a claim will depend on the type of cover You have selected:

 

Cover Level

 

Maximum Shortfall Benefit


If
You select  Cover 1:


W
e will pay up to $15,000


If
You select  Cover 2


W
e will pay up to $10,000


If
You select  Cover 3


W
e will pay up to $7,500


If
You select  Cover 4


W
e will pay up to $5,000


 
ADDITIONAL BENEFITS

We will pay You the cost of the Additional Benefits in the event of an authorised claim for a Shortfall benefit. Additional Benefits are not all of Your out-of pocket expenses. The maximum amount We will pay in relation to Additional Benefits will depend on the type of cover You have selected.



C
over Level

 

Maximum Additional Benefit(with shortfall)


If
You select  Cover 1:

W
e will pay up to $4,000

If
You select  Cover 2

W
e will pay up to $2,500

If
You select  Cover 3

W
e will pay up to $1,000

If
You select  Cover 4

W
e will pay up to $500
 
NO SHORTFALL BENEFITS

The maximum No Shortfall benefit We will pay if no Shortfall has been paid will depend on the type of cover You have selected.

 

Cover Level

 

Maximum No Shortfall Benefit


If
You select  Cover 1:


W
e will pay up to $2,000


If
You select  Cover 2


W
e will pay up to $2,000


If
You select  Cover 3


W
e will pay up to $1,000


If
You select  Cover 4


W
e will pay up to $500

Need More Information!

If you require more information on our Gap Insurance product, please call 1300 982 279 and speak with an experienced finance & insurance consultant.