Coverage is designed to protect the Customer for the shortfall they may experience as a result of a motoring total loss. The shortfall is measured as the difference between the Customer's outstanding finance and the primary motor insurer's settlement at the date of total loss.

Factors impacting on the customers outstanding finance are the term of the loan, the interest rate, down payments made and any negative equity that has been carried into the loan. 

The pay-out amount made by the primary motor insurer will be determined by the age, make and model, and perceived condition of the vehicle immediately prior to total loss.  

Vehicle Replacement Gap provides cover for the shortfall following the Primary Motor Insurer's settlement at total loss and the Vehicle Raplacement Price. 

If the model of the vehicle is no longer available a suitable replacement vehicle will be used.

Unlike Financial Shortfall the gap becomes larger over time with Vehicle Replacement.