Shortfall Extra Insurance with Bad Car Credit
Most of the time, if your car is stolen and unrecovered, or declared a write off, the motor insurance company pay out less than the amount of the finance agreement - this is called the shortfall. You still have to continue paying the remaining amount on a car you no longer own, and sometimes this can be thousands of pounds.
Don't worry the shortfall extra insurance will cover you. It will take care of the outstanding balance. It offers you valuable protection - and in our opinion is pleasingly inexpensive.
Type of insurance and cover
The shortfall extra policy pays a benefit if your motor vehicle is involved in a total loss and the amount received under your motor vehicle insurance settlement is not sufficient to repay the outstanding balance on your agreement, depending on the type of motor vehicle insurance policy you hold.
Features and Benefits
- In the event that your motor vehicle insurance policy provides comprehensive cover and your motor vehicle is a total loss, the policy will pay the difference between the insurance settlement and the outstanding balance of the agreement subject to terms and condition.
- In the event that your motor vehicle insurance policy provides third party, fire and theft cover and your motor vehicle is a total loss.
-
As a result of theft or fire, the policy will cover the difference between the insurance settlement and the outstanding balanceof the agreement.
-
As a result of an accident the policy will pay up to a maximum of the subject to the terms and condition.
-
You are eligible for cover under this policy if:
-
you are the registered owner and keeper of the motor vehicle
-
you are the insured person and named on the motor vehicle insurance policy
-
you are named as the customer in the agreement
-
your motor vehicle is under 15 years old and has never appeared on the total loss register
Duration of policy
The term of the policy is as set out in the Statement of Price which you will receive separately to this policy document. The policy will remain in force until the date on which you sell or transfer the motor vehicle, the date of any claim payment being made, the date on which you cease to have a valid motor insurance policy, the expiry of 60 months from the date of commencement or the date your agreement ends. Subject to terms and condition.
Right of Cancellation
You have the right to cancel your policy from the date of commencement if you decide within 30 days of receiving your policy document that you no longer want the cover. No refund will be given for any cancellation outside the 30 day period. A full explanation of your cancellation rights can be found in your policy document.
The benefits to you
- Your policy covers the full term of your loan.
- Shortfall Extra payment includes the excess on your motor insurance policy up to a maximum of £300.
- Third Party, Fire and Theft Customers can also benefit. If the vehicle is declared a total loss due to fire or theft, the benefit is the same. If the total loss is a result of an accident, Shortfall Extra Insurance can pay a maximum of £300 towards the amount remaining on your finance agreement.
