Ozbargainers,
I’ve recently come to realise that my insurance coverage in case of a write off (Novated Lease) is limited to a maximum of the total financed balance, which It sounds more like an insurance to the bank than to myself.
I expected the insurance to pay for the market value of the car (including novated leasing), but all other insurance providers I have checked with have the same limitation.
Is this a limitation to novated leases or am I not talking to the best insurers?
Exactly
Agreed 😂
Exactly because I’m paying them for it?
It isn't your car though. If you're living in a rented house and it burns down you don't get paid the value of the house, the person you're renting it from does.
Until you pay the residual payment it isn't yours
sounds like you have no experience with that at all
@lfsantosl: It doesn't sound like you do otherwise you wouldn't think you could get paid for a car you are leasing and don't yet own
@Quantumcat: You might want do do some research - you might be talking about a lease as opposed to a novated lease.
With the help from the other people who provided helpful advice I’ve managed to change my insurance to exactly what I wanted to do.
Thanks
i thought most nvl providers let you pick you own insurance
They do - I’m exactly checking if people know what insurers would pay for market value of the car, not balance of the transaction.
.. any insurance .. nrma, etc.
but but but
you either pick market value and substitute the car with an equivalent in the event of a write off. - or .. pick agreed value that covers your early termination costs
the latter becomes difficult if you have more than a one year lease
My understanding is that when you take out a comprehensive insurance policy on the vehicle in a novated lease arrangement, you can choose to either cover its market value, or an agreed value. In the past I have spoken to Allianz and AAMI about insuring a novated lease vehicle, not sure about others.
It’s not your car, you’re renting it. In fact you're not even renting it, someone else is, and you pay them for it. Why would you get a payout?