You’ve just bought your dream car… But what happens when the wheels fall off
Let’s paint the picture: You drive off the showroom floor in your shiny new wheels, feeling like royalty. A few months later, boom! An accident happens and your car is written off. You expect your insurance to sort it all… But the payout is less than what you still owe the bank. The horror.
That difference is called a ‘shortfall’ and it can leave you paying off a car you no longer drive. Ouch.
That’s where shortfall cover comes to the rescue, with its velvet cape and calculator in hand.
What’s shortfall cover
Shortfall cover pays the difference between your car’s insured value (retail or market) and what you still owe the finance house… If your car is written off or stolen and not recovered.
It’s also known as credit shortfall or top-up insurance, and it can save you thousands.
Why does this gap happen
Your car’s value drops the moment it leaves the dealer. But your loan doesn’t. So even with comprehensive car insurance, your payout might not cover what you owe.
Without shortfall cover, you’ll be stuck paying the leftover amount. That’s like paying alimony to your ex-car.
What does King Price’s shortfall cover include
Here’s what you get:
- The outstanding balance on your loan, minus your excess.
- Cover for financed cars that are comprehensively insured with us.
- Affordable monthly premiums (you won’t need to pawn your PlayStation).
What’s not included
- Balloon payments unless separately insured.
- Extras not listed on your policy (think custom rims or sound systems).
- Cars older than 10 years.
- Non-financed cars.
Want to cover your balloon payment too? No problem. We offer an optional add-on.
Why it’s a royal move
Imagine paying off a car you no longer have… While saving up for a new 1? Now imagine not having to. That’s what shortfall cover is for. It protects your wallet, your credit score, and your dignity.
Do I really need it
If you tick any of these boxes, the answer is a royal yes:
- You bought a new car on finance.
- Your car is less than 10 years old.
- You don’t have a spare R50,000 lying around.
- You’d rather avoid awkward convos with the bank.
Shortfall cover might not be glamorous, but neither is financial stress. It’s the royal safety net that keeps you covered when life takes a detour.
Already have comprehensive car insurance with us? Add shortfall cover in a few taps. Don’t have car insurance yet? Well, what are you waiting for?
Simply WhatsApp 0860 50 50 50 or click here to get a commitment-free quote.
FAQs
1. Does King Price offer shortfall cover for all cars?
Only for comprehensively insured, financed cars under 10 years old.
2. Is my balloon payment covered?
Only if you’ve selected our optional balloon cover.
3. Can I get shortfall cover without comprehensive insurance?
Nope. Shortfall cover only works in combo with comprehensive car cover.
4. What if my car is stolen but recovered?
Shortfall only kicks in if the car is written off or stolen and not recovered.
5. Does shortfall cover accessories or extras?
Only if they’re listed on your policy and included in the financed amount.