Is there specific insurance requirements? Recommended insurance? What are they?
Yes, A Novated Lease requires full comprehensive vehicle insurance cover for the entire period of the lease as a minimum requirement. Because the vehicle is owned by the leasing company during the lease period, this cover is a requirement of the terms and conditions of the lease.
ARE ALL COMPREHENSIVE POLICIES THE SAME?
NO! Different insurers have different features. These features dictate the type of cover and inclusions the policies contain which then dictate the price of the policy. It is very important to read through each of the most important items to consider when choosing the appropriate policy.
In our opinion, which may not take into account your personal circumstances here is a list of the key features you should consider when purchasing a comprehensive insurance policy for your Novated Lease;
“New for Old” vehicle replacement for the life of the vehicle ownership – There are very few insurers who offer this feature, however for a Novated Lease, this is number one of the list of important features. A Novated Lease has a residual value or balloon payment at the end of the contract. This means that you can not get any equity in the vehicle during the lease period. If for any reason the vehicle is written off in the first few years, and the insurer only covers the market value, there maybe a shortfall between the payout figure and what the insurer has set as market value. The “New for Old” policy feature removes all of this risk and provides a completely new vehicle in the case of a write-off.
Rental Vehicle – In the case of a minor accident where the vehicle is damaged and off the road for a period, while the repairs are being completed the rental vehicle, allows you to get on with life.
Emergency Travel and Accommodation and Emergency Repair Cover – This feature is great when an accident happens when you are away from home. Vehicle Solutions Australia’s insurer cover up to $500 for emergency travel and accommodation costs and up to $500 for emergency repairs.
Lifetime Repair Cover – You want to know that when repairs are made to your vehicle that they are covered by a warranty. Our insurer covers all repairs they authorise, the quality of the materials and workmanship are guaranteed for the life of your car, even if you no longer own it.
There are other features to consider. However, these are features that reflect your circumstances such as windscreen cover, locks and key cover, the level of personal items in the vehicle that are covered. When choosing your cover always shop around and talk to an advisor who can take all of your circumstances into account.
If you would like a quote from Vehicle Solutions Australia, please call us on 1300 990 880 or contact us through our online form by clicking HERE.