Shortfall Insurance To Minimise Risk For Your Loan

Imagine your car gets written off and your insurance company does the right thing and pays out.  What happens if their payout is less than what you owe on the car?  You are liable of course to pay the finance provider until your debt is cleared, even if you don’t have the car at all. These products help you minimize your risk and the banks risk of suffering a loss and often mean a discounted interest rate offered by the bank.

This is a very real scenario, but one that can be easily avoided with shortfall or gap insurance. Shortfall insurance provides coverage for that gap.