HI IF I GOT A SHORTFALL INSURANCE WITH MIWAY AND THE OTHER INSURANCE COMPANY AND I AM BEING IN A SUTUATION THAT MY CAR IS A WRITEOFF ,AND COMPANY IS PAYING IT OFF .IS MiWAY GOING TO PAY ME BACK THE MONEY THAT WAS SUPPOSED FOR THE FINANCE HOUSE
Not being excatly sure what you are asking, we will give an explanation of credit shortfall insurance …
Credit Shortfall Insurance is also known as Top-Up Insurance or Gap Insurance is insurance cover that can be added onto your existing car insurance policy. It is best explained by way of an example:
You have financed your car and took out comprehensive insurance (as this is required by the finance house which granted you the car loan). After a few months your car is stolen and you report this to your insurance company. In those few months your car has depreciated by say 20%, and the Insurance Company pay out at either the retail or market value of the car. In many cases this will be less than the outstanding loan on the car.
The insurance company will also deduct the excess that you have to pay before they pay the balance to the bank which financed your car. You now find yourself in a situation where you have no car and after the insurance payout you still owe the bank a considerable amount. Credit Shortfall insurance will fill this gap and pay out the difference between the insurance payment and the outstanding loan amount.
Car Insurance Additional Information
MiWay offers flexible car insurance to cover losses primarily due to an accident or theft.
In addition to accident or theft, comprehensive car insurance in South Africa covers losses due to fire and explosion, natural disasters like hail and floods and damage to the vehicle’s glass.
Additional options such as car hire and cover for non-standard sound systems and car accessories can also be added to your car insurance policy.
Car Insurance is sometimes referred to as Vehicle Insurance or Motor Insurance.
