Insurance

Why it’s a good idea

With comprehensive insurance, if an insured event effects your vehicle or someone else’s, you can breathe easy knowing you’ve got the support you need.

The insurance cover includes:

• Accidental damage to your car, including damage caused by fire, hail, flood, storm, or earthquake.
• Loss of your vehicle when lost by theft and not found.
• If your vehicle suffers malicious damage.
• Cover for damage to other people’s property caused by your vehicle.
• Hire vehicle costs following an accident or theft up to the policy sub-limit.

What it doesn’t cover

• The damage, loss, or injury caused while your vehicle is being driven by a person under the influence of any drug or alcohol or unlicensed at the time of the accident  OR
• If your vehicle is being used for carrying passengers for hire or reward.

Example scenario

Jaime’s car is stolen from outside his house, which cannot be found and his car is not recoverable because of the theft.  Jamie then lodges a claim with his insurer and the claim is assessed.

Where the loss falls within the scope of the cover provided the comprehensive insurer reviews and approves a Total Loss pay-out to Jaime for the loss of his car by theft.

A Hire Car benefit can also be provided, which pays for the hire of an alternative vehicle, up to the policy sub-limit, whilst Allianz is working through Jaime’s claim.

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The examples provided are only a summary.  Please read the Product Disclosure Statement for all of the product terms and conditions.

Why it’s a good idea

TLA offers the added security of knowing that your coverage extends beyond the comprehensive insurance payout. It provides additional protection against financial loss and means you don’t have to worry about paying out the remainder of the lease or losing money on the depreciation of your car in the event it is declared a total loss.

TLA offers to pay the greater of either;

• The gap between the total loss pay-out and the amount needed to payout the lease.
• The difference between the total loss pay-out and the vehicle purchase price.

If either amount is below $5,000, a minimum benefit amount of $5,000 will be paid. The maximum coverage of $60,000 may be paid subject to the policy’s terms, conditions and assessment criteria.

What it doesn’t cover

Some exclusions are:

• The comprehensive insurer must pay the total loss in full. If there has only been a partial payment from the insurer then you are excluded from making a claim.
• TLA will not pay for any arrears in the finance contract (such as penalties for late payments or negative equity).
• TLA will not payout if the vehicle is used for hire or carriage (Uber, driver instruction).

Example scenario

After a collision three years into her lease, Diya’s vehicle is written off by her comprehensive motor vehicle insurer, with her payout totalling $19,000.

The original price of her car was $40,000 and the finance contract payout amount is $21,000. As the purchase price was between $35,001 and $50,000, Diya is insured for a maximum $25,000. To process her claim, the insurer works out which has the greater gap or shortfall. To process her claim, the insurer works out which has the greater gap or shortfall.

• Finance contract shortfall $21,000 - $19,000 = $2,000
• Purchase price shortfall $40,000 - $19,000 = $21,000

Because the gap between the comprehensive insurance payout and the original price is the greater amount, the benefit payable to Diya = $21,000.

Of this amount, $2,000 will be paid to the financier to settle the finance contract, and the remaining $19,000 will be paid to Diya.

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The examples provided are only a summary. Please read the Product Disclosure Statement for all of the product terms and conditions.

Why it’s a good idea

As your novated lease is paid directly from your salary each pay, a sudden change in your employment circumstances could mean a stop to your lease payments.

Lease Protection Insurance provides cover in the following scenarios where your employment is impacted:

• Involuntary dismissal or redundancy
• Mental or functional disorder
• Sudden terminal illness or permanent injury
• Workers’ compensation claim
• Carer requirements
• Expatriate move
• Divorce or separation
• Death of a spouse or child
• Birth of a child

Benefits

Lease Repayments

The Lease Repayments benefit enables the following:

• Having your lease payments covered for up to 10 months of the period of unemployment; or until you find new employment; or until the end date of your contract, whichever occurs first;
• A $400 monthly benefit for your vehicle’s running costs that is paid directly to you for the duration of the claim (maximum total amount payable $4,000)

Vehicle Hand Back

The Vehicle Hand Back benefit allows you to hand back the vehicle and have the outstanding finance amount paid out at any time during the claim, prior to the 10th and final lease repayment.

If you wanted to retain the vehicle instead of handing it back, you would need to pay the financier the trade-in value at the time of the claim. Your policy will then cover the gap between the trade-in value and the outstanding finance amount.

In the case of sudden and terminal illness or permanent injury and expatriate move, only the Vehicle Hand Back benefit option applies.

For involuntary dismissal or redundancy, you must receive at least three (3) lease repayments before exercising the Vehicle Hand Back benefit option.

The maximum amount payable during the term of the cover for all payments is $50,000.

What it doesn’t cover

• Voluntary redundancy, resignation, retirement or abandonment of employment.
• Dismissal due to misconduct, or as a result of alcoholism, drug addiction or their influence.
• Involuntary unemployment which was known to be imminent before the policy was purchased; or occurs during the first 30 days of the policy commencing.

Example scenario

Two years into her four (4)-year lease, Justine’s department is downsized, and she is made involuntarily redundant. Justine initiates a claim, after 30 days of searching she has not yet found new employment and so her Lease Protection Insurance kicks in.

From this point on, her monthly lease payments are taken care of and her $400 monthly running cost benefit is paid directly to her. Justine can now claim up to 10 months’ worth of payments, all helping to reduce financial stress and worry while Justine continues to look for work!

Handback option – after three (3) months of payments, Justine can also hand back the car to the insurer who will arrange a full payout of the outstanding lease amount.

The maximum amount that Justine can claim during her period of insurance is $50,000.

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The examples provided are only a summary. Please read the Product Disclosure Statement for all of the product terms and conditions.

Why it’s a good idea

When you get to the end of your novated lease, your car's value may not be enough to cover your residual payment and you’ll have to make up the difference.

GBB provides protection in the event of this scenario and covers this gap for you.

Features include;

• A one-time premium with no excess.
• Cover for the difference between what you can sell your car for and your end of lease residual payment, provided your lease goes full term.
• Ability to retain your vehicle if you submit a valid GBB claim, and pay the financier the trade-in value.

What if I am forced to payout my lease early?

GBB is not designed to cover the gap between your trade-in value and the outstanding finance amount if your lease ends before its natural end date.

If you are required to end your lease early, GBB may be able to contribute to the finance payout amount but only if your trade-in value is less than the vehicle value determined by ATO guidelines.

The minimum amount payable if you have valid claim and your lease ends early is $2,000.

The maximum amount payable during the term of the cover is $30,000.

What it doesn’t cover

• If the trade-in value of the vehicle is greater than the residual value at the end of the lease or the ATO calculated value if your lease ends early.
• If the vehicle is sold to someone other than the insurer.
• If the lease is terminated within the first 24 months from the start date

GBB is guaranteed in accordance with the terms, conditions, limitations and exclusions of the policy

Example scenario

Michael leases a new vehicle prices at $35,000 over a five (5)-year term. At the end of the lease, the residual value is $10,830 and the trade-in value is $8,200, so the difference or shortfall between the two is $2,630.

Michael has GBB and because the lease has reached full term and the trade-in value is less than the residual value, he can claim for the difference.

As a result, he can simply hand the vehicle over to the insurer, who will pay the financier the trade-in value of $8,200 plus the shortfall amount of $2,630, totalling the residual payment of $10,830.

If Michael wanted to retain the vehicle, he could pay the financier the trade-in value of $8,200 and the insurer will pay the balance of $2,630.

Michael, therefore, has no shortfall amount to pay the financier.

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The examples provided are only a summary. Please read the Product Disclosure Statement for all of the product terms and conditions.