Credit shortfall

In a nutshell

If the car we comprehensively insure for you is financed by a financial institution and it’s written-off, stolen or hi-jacked, then credit shortfall covers any amount that you may still owe the financer after we’ve paid out the value of the car. This cover must be stated on your policy schedule and an additional premium is payable.

What’s covered by the king

• The difference between what your car is worth at the time of being written-off, stolen or hi-jacked, and what you may still owe the financial institution for it.
• Balloon payments and residual values.

What’s NOT covered by the king

• Higher settlement amounts due to re-financing or re-advance amounts.
• Any payment arrears, interest on arrear amounts, or other extra finance charges.
• Early settlement charges.
• Any amount over and above the financed amount or original purchase price of the car.
• Any amounts that are refundable to you.
• The excess amount/s applicable to your comprehensive car cover and any other amount/s that may rightfully be deducted from the car claim.
• Non-standard sound equipment and extra trimmings and accessories that have been fitted to your car but which you haven’t stated on your policy schedule and which aren’t part of the original finance agreement.
• Any claim under this section if your claim for the loss of, or damage to, your car is unsuccessful, or if your King Price policy is cancelled.