When you finance the purchase of a motor vehicle of other goods with AFS, it is a requirement of the loan contract or lease to have the security comprehensively insured at all times during the contract term. As a consequence, you must organise insurance before delivery by transferring your current insurance or arranging new cover. AFS will finance comprehensive insurance from the insurer of your choice, provided they are an insurer that has been authorised by the Australian Prudential Regulatory Authority (APRA).
With comprehensive insurance you will generally be covered for accidents, fire and theft as well as any third party damage you may be legally liable to pay. You should read the Product Disclosure Statement for the product you intend to purchase so that you understand exactly what is covered, the benefits for each level of cover, and what the limits and exclusions are.
AFS prefers 12 months Comprehensive Insurance to be financed by the credit contract but also accepts:
- Pay-By-The-Month Insurance; or
- Transfer of an existing insurance policy.
A Certificate of Currency or Notification of Insurance must be supplied at Settlement, noting Automotive Financial Services Pty Limited (AFS) as an interested party.
When financing of insurance premiums over mortgaged property, AFS must not knowingly provide credit to the debtor to pay the premium or finance the premium on insurance taken out by the debtor over mortgaged property for a period of insurance exceeding 1 year, but may provide credit for or finance successive premiums for periods of 1 year or less.