Comprehensive car insurance, shortfall insurance, loan protection insurance – there are so many different types of insurance available when you’re purchasing a vehicle. But what are they all, what do they cover you for and is it worthwhile taking them out?
Comprehensive Car Insurance
Let’s start with comprehensive insurance, which provides cover for damage to your car, theft of your car and most importantly, damage to other vehicles and/or property when you are deemed ‘at fault’.
The biggest thing to remember with vehicle finance is that it is usually a requirement of the loan contract that you must have comprehensive car insurance during the entire period of the loan. In most cases, this is because the finance may be secured against the vehicle.
There are many different insurers who offer comprehensive car insurance. Here at Kiwi Car Loans we have accreditations with insurers and can offer competitive comprehensive car insurance quotes or alternatively, you’re welcome to arrange your own comprehensive insurance.
We can offer flexible comprehensive insurance including optional extras such as windscreen cover, hire car after an accident and variable excess options to keep your insurance premiums affordable.
In the event that you’re involved in an accident, your vehicle is damaged beyond repair or stolen, your comprehensive insurance pays out either the market or agreed value depending on the policy. Have you ever wondered what would happen if the payout from the comprehensive insurance doesn’t cover the amount left owing on your loan?
This is a very common situation, especially if something was to happen and the vehicle is written off within the first few years of the loan commencing. This can be caused by the addition of registration and stamp duty to the loan
This is where Shortfall or ‘Gap’ Insurance comes in. Shortfall Insurance covers ‘the gap’ between what the insurer pays out and what is left owing on your loan, which can be a significant amount of money.
Mechanical Breakdown Insurance
Mechanical Breakdown Insurance covers you up to the policy limit for costs involved in repairing your vehicle after the manufacturer’s warranty expires. This type of insurance is available for both new and used vehicles. It covers the cost of vehicle repairs, parts and labour during the coverage period up to the chosen policy limit.
You still need to pay for normal wear & tear items such as new tyres, light bulbs and general vehicle maintenance, however Mechanical Breakdown Insurance is worth considering, especially when purchasing a used vehicle as you have no way of knowing the condition of the vehicle or how well the previous owner has maintained it.
Loan Protection Insurance
Have you ever considered how you would make your loan repayments if you were to be injured, lose your job or die? Rather than your loan repayments being an added burden for your family, Loan Protection Insurance is available to help assist in such circumstances.
Loan Protection Insurance covers you if you are unable to make your loan repayments due to injury, sickness, involuntary unemployment, disability and even death. It can provide you with peace of mind that if you were to be fired from your job or hurt and unable to work that your loan repayments would continue to be made by the insurer up to the policy limit.
If you’re considering obtaining finance for a vehicle, speak to the team at Kiwi Car Loans about our loan packages which can include any or all of the protection products above in addition to your loan repayments to ensure you get the best possible protection for low weekly repayments.
Contact one of our friendly finance consultants today on 0800 008 888 or get your obligation-free finance quote online.