Why Your Car Needs Shortfall Cover

Known by various names like Credit Shortfall, Shortfall Policy, or Gap Insurance, this type of coverage serves as a safety net against unforeseen financial burdens that can arise from accidents or theft.


What is Vehicle Shortfall Cover?

So, you've just purchased your dream car, financed through a bank or other financial institution. Unfortunately, an accident or theft can happen at any time. While your insurance compensates you based on the car's current market value, this amount often falls short of what you still owe on your loan. Here's where dotsure.co.za’s Vehicle Shortfall Cover steps in. It can cover the difference between the insurance payout and the outstanding loan amount, ensuring you're not left with a hefty financial burden.


How Does it Work?

Let's break it down with an example:

  • You buy a car and finance it for R100,000.
  • You pay a R20,000 deposit.
  • An accident occurs, and the insurance payout is R60,000, leaving you with an outstanding loan balance of R80,000.
  • The shortfall amounts to R20,000. This is the difference between what's owed and what the insurance covers.
  • With shortfall cover, this R20,000 is settled, sparing you from dipping into your savings.

It's worth noting that shortfall cover typically excludes additional expenses such as excess payments, administrative fees, or charges for payments in arrears, which remain the policyholder's responsibility.


Why Opt for Shortfall Cover?

South Africans, known for their attachment to their vehicles, face a stark reality. Car theft and accidents are all too common. New cars depreciate rapidly, and crime statistics paint a grim picture. Therefore, the risk of financial loss looms large.

The emotional and financial toll of losing a vehicle is significant, making shortfall cover a wise choice.


Additional Benefits

Beyond bridging the gap between insurance payouts and loan balances, dotsure.co.za offers supplementary benefits:

Accidental Death Benefit: In the event of the policyholder's passing, the outstanding balance on the vehicle's finance agreement may be covered, easing the financial strain on the family.

Accidental Permanent Disability Benefit: If the policyholder suffers a total and permanent disability due to injury, the outstanding balance on the loan may be settled, providing much-needed financial relief during a challenging time.


Whether it's a minor mishap or a major loss, having the right coverage ensures that your journey on the road of life remains smooth and carefree.