Salary Packaging Australia
GAP Insurance

GAP Insurance is an option available to you before settlement of your Novated Lease that is designed to cover any potential shortfall between a Comprehensive Insurance payout (made in the event that your vehicle is declared a ‘Total Loss’) and the outstanding balance of a Novated Lease finance contract.

There are 4 options available under this ERIC Insurance policy;

Shortfall Benefit
Maximum Additional
Benefits (with shortfall)
No Shortfall Benefit
Cover 1 Up to $30,000 $10,000 $2,000
Cover 2 Up to $15,000 $4,000 $2,000
Cover 3 Up to $10,000 $2,000 $2,000
Cover 4 Up to $10,000 $1,000 $2,000

Key Features Benefits
Total Loss Cover Peace of mind cover that protects your Credit Rating by avoiding potential bad debts and allows you to remain in the vehicle market or avoids the need to use savings to cover an unexpected finance shortfall in the event that your vehicle is written off during the finance contract term.
Choice of Options Flexibility to choose your desired coverage based on the loan size and your individual preferences.
Additional Benefits Additional Benefits are paid to help cover the less obvious costs that could be incurred when your vehicle is written off as a Total Loss and a shortfall exists.
No Shortfall Benefit In the event of a Total Loss, where there is no shortfall the insurer makes a $2,000 payout to you irrespective of your chosen option.
No Excess No excess payable in the event of a claim

GAP Insurance Example