Don’t get caught short
You bought the car of your dreams. You’re paying it off monthly. Then boom… It’s stolen, hi-jacked, or written off. But your insurer payout doesn’t cover what you still owe the bank. So, who coughs up the difference?
You do. Unless you have shortfall cover. That’s where King Price steps in (like a superhero in red undies) to save the day… And your wallet.
What’s shortfall cover
Shortfall cover (also known as credit shortfall insurance) pays the difference between what your comprehensively insured car is worth at the time of loss and what you still owe your financer (usually the bank).
It’s not automatically included in your car insurance policy, so you’ll need to add it. But it’s totally worth it, especially if:
- Your car is financed.
- You opted for a balloon payment.
- You’re in the early stages of your loan.
Why you need it (like, yesterday)
Your car’s value drops faster than a bad TikTok trend
Cars depreciate. In fact, they start losing value the moment you drive off the dealership floor. But your loan doesn’t drop nearly as fast. This means that if your car is written off, your insurance payout might not match what you owe. That gap is your shortfall.
Balloon payments = balloon-sized gaps
If your car finance includes a balloon or residual payment, the shortfall can be massive. Shortfall cover ensures you’re not left footing that bill when your car is no more.
Accidents and theft happen
It’s a jungle out there. No matter how careful you are, accidents, theft, and hijackings happen. Shortfall cover gives you peace of mind when the worst happens.
What’s not covered
Now, before you get too comfy, here’s what shortfall cover doesn’t include:
- Payment arrears and interest on late payments
- Early settlement penalties
- Non-standard accessories not listed on your policy
- The excess amount on your insurance claim
And remember: Your car must be comprehensively insured with King Price for shortfall cover to apply.
Royal recap
If your car is financed and something happens to it, the last thing you want is to pay thousands for something that’s already gone. With King Price shortfall cover, you won’t be left holding the bag.
It’s affordable, easy to add, and could save you a mountain of debt. So, don’t wait until it’s too late. Protect yourself from financial shortfalls today.
Click here for a commitment-free insurance quote or you can WhatsApp us on 0860 50 50 50
FAQs
1. What exactly does shortfall cover include?
Shortfall cover pays the difference between your car’s insured value (what your insurer pays out) and the amount you still owe the bank if your car is stolen or written off. So, if your payout falls short, the king steps in to cover that shortfall… Because being left with debt and no car is just rude.
2. Is shortfall cover automatically included in my car insurance?
Nope, it’s not included by default. You’ll need to add it to your comprehensive car insurance policy. It’s super simple to do and can save you serious bucks in the long run.
3. Who really needs shortfall cover?
If your car is financed, you’ve chosen a balloon payment, or you’re early in your repayment term, shortfall cover is highly recommended. Basically, if you’re still paying off your car, shortfall cover is your financial seatbelt.
4. What doesn’t shortfall cover pay for?
It doesn’t cover your insurance excess, late payment interest, arrears, early settlement penalties, or any aftermarket accessories that aren’t listed on your policy. Think of it as gap cover for your car loan, not a catch-all safety net.
5. Can I get shortfall cover if my car isn’t insured with King Price?
Nope. Your car must be comprehensively insured with King Price to qualify for shortfall cover. But that’s actually a win… Because it means royal service and decreasing premiums to go with your peace of mind.
