Let’s take a hot minute to talk about shortfall cover. It’s now a thing that you can get in the insurance world. We don’t just jump on any old band wagon when it comes to insurance products. We either pioneer out-of-this-world products with ridiculously amazing benefits that make perfect sense for our clients (like our decreasing premiums and R1 insurance)…
*Deep breath for next sentence*
Or we look very carefully at new things that have been introduced into the market and eyeball them, good and proper, to see if they make sense for South Africans, if they’ll benefit you (yes, you), and if we can make them better in every way possible.
*Exhales after that long sentence*
So, after much pacing, calculating, reviewing stats for car theft and loss in our fair nation, and the thinking of very deep thoughts, the king, in his infinite wisdom, decreed that shortfall cover is a good way to help South Africans.
And that’s how we decided to launch shortfall cover as part of our royal personal insurance line. Just in case you were wondering. Which we’re sure you were. Now, let’s move on to the juicy stuff. The guts of it all. The reasons why you would need shortfall cover.
The king’s shortfall cover
Before we delve into why you need this cover, let’s unpack what it does for you. First of all, shortfall cover is a product that you add to your comprehensive car insurance policy for a small additional fee.
Secondly, shortfall cover insures the difference between what your car is worth if it’s stolen or written off in an accident… And what you still owe on it after your insurer has paid out the value of the car. Like balloon or residual payments.
Who should consider shortfall cover
This product is perfect for anyone who’s taken out finance to buy their car and plans on actually driving it around.
If you go to a bank, the cash they pay out will come in the form of a ‘car finance loan’ and your car is considered a ‘hire purchase’. This means that the bank considers the car their property until you pay the final cent. That’s why it’s part of the agreement that you have with them to take out comprehensive cover. To protect their asset.
And supposing disaster were to strike and (horror of horrors) the car is stolen, hi-jacked or written off in an accident? In that case, your comprehensive cover kicks in and pays the bank to settle what you still owe them.
But what about if you still owe a chunk of change for your car, like a balloon payment?
The king’s shortfall cover saves the day
After your comprehensive cover pays the bank and you’re left with more outstanding Rands and cents, our royal shortfall cover steps in to save the financial day. We’ll actually pay this difference so that you can start over, with a clean slate and a 0 balance.
It’s an extra step that you can take to secure your financial safety if you’ve taken finance to buy your very own transport.
See? It just makes sense to get our royal touch in your life.
Get a quick quote here or call our royal sales team on 0860 50 50 50.