Purchase Price Insurance
Purchase Price Insurance (also known as PPI or Purchase Price Protection Insurance) is insurance against a potential shortfall between the purchase price of your vehicle and your Comprehensive Motor Vehicle Insurance payout in the event that your vehicle is declared a total insurance loss (stolen or a "write off"). You could be left with a shortfall of thousands of dollars.
In the event of a total loss due to accident, theft or the like, your Comprehensive Motor Vehicle Insurance payout will typically be determined by the market value of your vehicle at that time. This may not be the same as the price you originally paid for the vehicle.
As a result of this shortfall, possibly thousands of dollars, a replacement vehicle of the same brand, model and quality may be out of reach. Purchase Price Insurance will cover this shortfall up to the maximum benefit payable under your chosen option (ranging from $4,000 to $40,000).
Note that Purchase Price Insurance and GAP Insurance are distinct and different insurances. GAP Insurance covers a potential shortfall between your Comprehensive Car Insurance payout and the payout figure for your car loan, whereas Purchase Price Insurance covers a potential shortfall between your Comprehensive Car Insurance payout and the price you initially paid for your vehicle.
Benefits of Purchase Price Insurance
Purchase Price Protection offers a range of benefits including:
- Reduces or eliminates your financial exposure to a potential shortfall between your Comprehensive Motor Vehicle Insurance payout and the purchase price of your vehicle (up to $40,000).
- Provides the means to purchase a replacement vehicle of similar quality more easily.
- A wide range of options and maximum benefit amounts available to suit your vehicle and budget.
- Up to four years cover available.
- The insurance premium can be included in your car loan (added to your loan rather than paid as an upfront lump-sum).
Who does Purchase Price Insurance suit?
Purchase Price Insurance is suitable for customers purchasing a new or late-model vehicle, who want to be protected from the potential loss that may occur due to a difference between their Comprehensive Motor Vehicle Insurance payout and the purchase price of their vehicle in the event that the vehicle is a "write off" or total loss.