In the unfortunate event that your car is ‘written off’ by your insurer, your Novated Lease arrangement will need to be finalised with the financier.
Should your insurance policy have a replacement clause that is still valid, your insurance company will work with you to replace your ‘written off’ car with a new one. There will be some documentation to complete with the financier when this occurs.
If the replacement clause is not applicable or valid, should the car value that is determined by the insurance company be less than the payout figure from the financier, you will be responsible for the payment of the difference. This is commonly referred to as the GAP or shortfall amount.
If you are insured through our Fleet Policy and our insurer approves the insurance claim, the difference between the value of the car paid by the insurer and the payout figure is completely covered. If the insurer does not approve the claim, you will be responsible for the payment of the full payout figure to the financier. Please refer to the insurance documentation supplied when you start your Novated Lease or request a copy from us.
If you have insured the car through your own insurance policy, should there be a GAP or shortfall amount after the insurer has determined the value of the car, you will be responsible for the payment of the shortfall amount to the financier.
If your insurer does not approve the claim, you will be responsible for the payment of the payout figure to the financier.