A shortfall policy settles the balance owing to your finance house once your comprehensive insurer had made a settlement. A shortfall policy will not cover any shortfall, regardless. A shortfall policy only covers the vehicle and value of the vehicle, so extras and accessories (such as sunroof, mag wheels and upgraded sound etc) are not covered by a shortfall policy. Policyholders are encouraged to insure accessories separately with the comprehensive insurer.
All shortfall claims are assessed strictly according to the policy wording. Shortfall is calculated by using the Capital balance as at date of loss less the payment made by the comprehensive insurer, less certain conditions which are not covered, such as; unpaid debits, arrear interest, add on products, underinsurance and refunds paid over to your finance house on your behalf. A detailed analysis is done on your payment history with the finance house which forms part of your claim calculation. Please refer to your policy for general conditions and policy limits.