I have heard that there is insurance that pays the outstanding amount on your finance agreement should your car be written-off and the insured value your insurer pays to settle a claim is less than the outstanding amount?

This type of insurance is called Credit Shortfall. MiWay will pay the shortfall when the amount you owe in terms of a finance agreement (as defined in the Credit Agreements Act) with a finance company exceeds the insured value we pay to settle a claim.

For credit shortfall to apply, your vehicle must be uneconomical to repair or have been stolen or hijacked and not recovered.

You will not be covered for the following under MiWay’s Credit Shortfall product:

• The excess on your vehicle claim
• Arrear instalments due and interest on them
• Any early settlement penalties
• Additional finance charges
• Any refundable amounts added to your finance agreement over and above the purchase price of the vehicle
• Insurance premiums, motor warranties and maintenance programmes which must be refunded to you by the company that administers the policy or warranty
• The credit shortfall on vehicle sound equipment or non-standard vehicle accessories which are not specified on your Coversheet and which form part of the finance agreement.