Worried about a write-off? Value Protect Insurance has your finance covered

Think comprehensive car insurance will completely cover your back in the event of an accident? Think again. If your car is declared a write off, comprehensive cover may not bridge the gap between what your old car is worth, and what your new car will cost.

Sobering thought right?

But there is a solution.

If you’re unlucky enough to have your car written off, Value Protect Insurance provides the additional coverage you need. An add on to your comprehensive insurance, it’ll kick in if your comprehensive insurer makes a total loss payment for an accident that occurs during the period of your finance/contract.

So, what actually gets paid out?

Great question. VPI will pay the greater of the following:

  • The loan settlement amount you owe your car financier, less the total loss payment


  • The replacement vehicle value less the total loss payment. This should cover the gap between the vehicle that’s been written off and the one you’ll purchase to replace it. The replacement vehicle value is set when you apply for your VPI, however, the replacement value can’t be more than the value of your vehicle at the date the policy comes into force.

There’s also the added bonus that if you have new for old replacement cover and you don’t redeem your VPI, you’ll get your premium (less minimal administration costs) back.

Are there any restrictions?

There are some limits to VPI. Your vehicle must not be:

  • More than 10 years old when the cover is taken out
  • A motorcycle
  • Used as a taxi or a courier, delivery or any other vehicle used to transport goods for hire, fare or reward

Can VPI be part of my car finance package?

When you take out VPI with us, yep, it absolutely can. A lot of financiers don’t offer this option, but as your one-stop auto shop, we’re more than happy to help you out. Alternatively, you can pay via monthly instalments or one up-front payment.

Easy right?

Things to keep in mind

As with any kind of insurance, it’s your responsibility to determine whether VPI coverage is right for you. That’s why we recommend you take the time to consider the Product Disclosure Statement and ensure the level of coverage provided is suitable for your needs. When making your decision, you should consider:

  • The amount you’ve borrowed under your loan contract
  • The amount your comprehensive insurer will potentially pay out in the event of a total loss payout
  • The potential difference between the amount payable under your loan contract or the likely replacement cost for a new car and the total loss payment

You should also consider how much you can afford to be out of pocket if the worst happens and a total loss occurs.


We’re here to help, so bring it on! For more information on VPI and how it can provide added protection in the event of a serious bingle, contact us.

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