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Gap / Shortfall Protection A number of people have rarely heard this term, however many people soon learn what it means. We all understand that when we buy a new car and drive it off the lot, it immediately loses a great deal of value as is changes from "new" to "2nd hand". With Vehicle finance a similar concept applies to your loan. When you first take out your loan you owe a great deal and in the first few years of your loan, this amount reduces slowly. As your car often loses value more rapidly than your loan balance reduces, there is often a "Gap" between what you owe and the value of your vehicle, especially in the early years. Not only does this Loan Protection cover that "Gap", but you will also receive a cheque for up to $4,000, how good is that? In theory, this is to go towards the on road costs of the next car or out of pocket expenses incurred in the loss of their previous car, however there is no law telling you what to do with it. Gap Protection and a cash bonus, it could be just what you are looking for. Gap Insurance is just one of the insurance products that you can have included with your car finance loan package, or personal finance loan package. Some of the others are: Your Finance broker, can discuss what insurance products will best be suited to your individual circumstances.
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