What is vehicle credit shortfall cover & why do you need it?
When you finance your car, your finance house charges you interest on the money they have loaned you. Uncool! Unfortunately, the price you see is never the price you pay, unless you buy the car cash.
Here is an example:
The difference between the insured value and the total amount owed to the bank (actual contract balance) is called the “credit shortfall” and it really sucks that insurers don’t necessarily warn you about this dangerous risk. In the example above, the credit shortfall is calculated in the following way:
Actual Contract Balance - Outstanding Capital Balance = Credit Shortfall
R 250,000 – R 200,000 = R 50,000
At dotsure.co.za, we don’t only warn you about the risk, we protect you against it, for FREE! We will cover you for up to R 50,000 or 20% of the market value of the vehicle, whichever is the lesser, towards your outstanding interest fees* – Mahala!
In addition to the above, in the unfortunate event that you become permanently disabled or pass away, we will assist you and/or your family by paying up to 9 months instalments to a maximum of R 50,000 on your vehicle’s finance agreement – cool hey?
Normally you would pay for a product like this but because you chose well, and because you chose dotsure.co.za - this cover is FREE.