Purchasing a new or used car involves spending a fair amount of money so we’re pretty sure that you will want to protect your investment! Besides looking at comprehensive insurance that can help you foot the bills associated with an accident on the road, what happens to your loan during that time? And that’s where your guaranteed asset protection plan can come in. Don’t you want something put in place so that you can sleep easy knowing that the loan will taken care of if it comes down to it?
When you pick up a car loan from a financing institution, we know that not many people think about exactly how much you become liable for it throughout the period that you’re paying it off. If something DOES happen to the car – for example it might have totaled on the road, fire, theft, or any other number of situations that immediately decrease its value or makes the car unavailable to you – the magnitude of the whole loan will weigh down on people who still have payments left to make even though the car is no longer usable.
That doesn’t sound fair does it?
More than that, even with a good comprehensive insurance plan in place, you might have a big gap between the actual value of your car and the remaining car loan that you need to repay. This is because of the rate of depreciation which unfortunately happens a lot quicker than you can pay off your loan. Chances are that there’s a fair amount of money that needs to come out of your pocket to square off the loan so you can be free of the debt and you can worry about getting a new car and financing loan.
If you can’t make payments, your credit rating suffers preventing you from being able to get a good financing rate for your new car but worse than that, you and your family have to scrounge up that money from somewhere for a while to come so that you can fulfill your obligations to the bank before they take more drastic measures. That’s not the kind of burden you want to have.
So let’s just talk about what asset protection insurance can do to prevent this from happening:
Putting in place some asset protection will help you to get rid of any shortfall between the insurance payout for the value of your car so that you can fully write-off the bank loan, and more importantly that they will write-off your obligation and release you of liability to them. Guaranteed Asset Protection can definitely help you to match your car loan exactly if planned well and put in place timely when you first sign up for any form of financing.
In addition to that, your credit rating will be protected and you can include further protection on any stamp duty, registration or CTP fees too in addition a number of other options you can add in for your full coverage!
If something does happen to your car, we don’t want you to panic and worry about what your next step will be. Why not let The Smarter Finance Company help you put some safe guards into place? An asset protection insurance plan can give you the peace of mind that you’re searching for.