Insurances are very important.

There are generally 4 types of insurance products designed to protect you and the item you are financing.

Comprehensive Insurance.

We often spend a great deal of money purchasing the family car and keeping our family safe. However a great number of people forget to protect their investment.

If the car is involved in an accident, Comprehensive Insurance will pay for the cost of repairs. If the car is written off in an accident or stolen, Comprehensive Insurance will cover the amount the policy holder is insured for in the policy, regardless of whether the accident is their fault or not.

When financing a vehicle Comprehensive Insurance is required by law whenever the vehicle is taken as security.

Feel free to ask for a quote, and include Comprehensive Insurance within the loan amount you are seeking.

Loan Protection Insurance.

There are 3 types of Loan Protection Insurances most people consider.

Disability Cover will make the repayments on the loan while you have a Doctors certificate saying that you are unable to perform your normal duties. This is regardless of whether injured at work or not.

Involuntary Unemployment Insurance will cover your repayments for a period of time, if you are made redundant.

Life Insurance will pay out the loan balance in full.

Gap or Shortfall Insurance.

Gap Insurance will pay the shortfall between what the comprehensive insurer pays out and what is owed to the Lender if the vehicle is written off in an accident, or stolen.

Warranty.

Warranties come in a huge array of levels of cover and time frames. If you are going to be keeping the car for a while make sure you have a warranty to cover you at all times.