A Novated Lease is very similar to any other vehicle finance arrangement. The leasing company has an interest or a lien on the vehicle while you are making the payments. Therefore it is important to let them know if you ever have an accident. When Vehicle Solutions Australia establish any Novated Lease, we arrange for the employee to note the Leasing company as an “Interested Party” on their insurance policy. This simply tells the insurer that they need to contact the financier in the case of a write-off. Then both the insurer and financier can communicate and have a more efficient claim process and outcome.
WHAT TO DO IN THE CASE OF AN ACCIDENT
Never admit liability at the time of the accident. Simple swap personal details with the other parties involved in the accident and contact your vehicle insurer as soon as possible. The insurer will then advise you on the next steps to take. If in doubt, please feel free to call us on 1300 990 880.
The regards to the novated lease arrangement, this depends on if the vehicle was written off or just damaged.
If the vehicle is written off by the insurer, then it is up to the insurer and the type of insurance you have as to what and how fast and how the claim is paid. With a Novated Lease, you need to ensure you have enough coverage to ensure the vehicle at any point in that lease will be replaced or the finance is owing will be paid out. To ensure this a lot of Novated Leasing companies will sell you “GAP” or “Auto Equity” insurance on top of a Comprehensive policy. These insurances are used to cover any difference in the payout figure (at the time of the accident) and what the insurer values that vehicle is at the time of the accident. Vehicle Solutions Australia prefers to use a Comprehensive Vehicle Insurance policy by Suncorp Insurance. This policy has a built-in feature that gives the insured “New for Old” cover for the entire time you own that vehicle (Life of Ownership). This not only gives you complete peace of mind but saves you money from having to buy a separate GAP like policy. The new vehicle will simply be substituted into the current novated lease, and the lease arrangements will continue as normal.
If the vehicle is damaged and requires fixing, then a good Comprehensive Vehicle policy should have a rental vehicle built into the policy to cover an extended period that your vehicle is off the road, allowing you to get on with life. Again the Policy Vehicle Solutions Australia uses has this cover included. While the car is being repaired the Novated Lease continues as per normal.
Please check with your current insurer before agreeing to the policy or upgrading a vehicle on your current policy. In the past few years 2016-2017 and now in 2018, the insurance industry has been forced by ASIC to be more accountable. This has resulted in reduced premiums for some companies and higher premiums for others. We suggest shopping your next car comprehensive policy around to at least three new providers before making a decision. This work could save you hundreds a year, and having the right policy could save you thousands in the case of an accident.
If you require any information or would like a quote on our insurance through Suncorp, please don’t hesitate to call us on 1300990880 during office hours.