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INSURANCE PRODUCTS
Compulsory third party insurance (CTP) or ‘greenslip’, as it’s most commonly known as in NSW, is legally mandated in all states within Australia. It provides cover for legal liability for injury and death as a result of an accident for which the insured is responsible – be it for other drivers, passengers, pedestrians or cyclists. In most states this is included in your registration fees, however if you’re from QLD or NSW you have the option of choosing a CTP provider.
It’s important to be aware that in an accident, CTP won’t insure you for any damage caused to you or any one else’s car or property. Therefore the safest way to protect yourself from nasty surprises is to consider comprehensive insurance over and above any imposed state regulatory cover.
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.
Motor vehicle warranty insurance is an insurance policy purchased by you to minimise the cost of replacing or repairing motor vehicle parts in the event that they are faulty or damaged, subject to specific limits. If a vehicle meets certain qualifying criteria, a vehicle warranty can be purchased for various periods ranging from 6 months to 60 months. In some cases, a warranty may be purchased prior to the expiry of the manufacturers extended warranty so that you maintain continuity in your protection.
Vehicle breakdowns are annoying at best and financially disastrous at worst. Vehicle warranty insurance will enable you to drive with confidence knowing that if your vehicle suffers a major breakdown you'll be covered for the specified repairs which you can usually get done at your local licensed garage or dealer.
Consumer Credit Insurance is designed to give you and your family peace of mind. In the event of an accident, sickness, involuntary unemployment, death and sometimes trauma, this insurance will cover your loan repayments, subject to the limits of the policy.
When you borrow money to purchase a vehicle you may be exposed to this insurance shortfall or “Gap”. This gap is the difference between the insured value of the vehicle or financed goods and the remaining balance required to finalise the loan or lease. Gap Insurance is only available when you enter into a new finance contract at the point of purchase and the vehicle or asset is comprehensively insured.

 

Today most comprehensive insurance policies are market value policies making the purchase of gap insurance an important product to consider.

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Important Notice
Please ensure you have received, read and understood the Product Disclosure Statement and Policy Wording (PDS) and what the limits and exclusions are for each product before you purchase them.
It is important to note:
  • You cannot be forced to take out any type of insurance;
  • You cannot be forced to take out insurance with a particular insurer;
  • Details of the other types of insurance covers the authorised representative can issue, along with the way in which they are remunerated, are disclosed in their Financial Services Guide;
  • If you purchase an insurance policy and decide within 14 days that it doesn't meet your needs, for whatever reason, you can cancel for a full refund less any taxes or duties that the insurer cannot recover. This is called the Cooling Off Period; and
  • If you have any queries or a complaint about an insurance product offered to you, you should follow the complaint handling procedures detailed in the insurer's Product Disclosure Statement.