Loan Termination Insurance

Features & Benefits

Whether you have a Car Loan, Lease or Novated Lease attached to your vehicle; you can protect yourself from the unexpected.

Loan Termination Insurance provides two levels of cover that in the event you become involuntary unemployed or suffer an accident or illness* that prevents you from working, the insurance policy will either allow you to return the vehicle to the dealer or assist with making payments to your financier while you get back on your feet.


Buy cover through us and automatically receive a 10% discount.


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Cover Details:

Loan Termination Insurance


Eligible applicants must be:

  • In good health and aged 18 to 64 years.
  • Working for at least 20 hours per week in either continuous permanent, part-time or casualemployment. If casual employment, you need to be with the same employer for at least 12 months.
  • Employed in non-seasonal, continual or steady positions and
  • Have a current existing car finance contract (loan, lease or novated lease


Key benefits applicable to Loan Termination Insurance when you HANDBACK your vehicle to a dealer upon:


Involuntary Unemployment or Accident or Illness (disability):


If you encounter or suffer from one of these events during the period of cover and as a result you wish to Handback your vehicle to the dealer, providing there is a Shortfall, then the insurer will pay the Shortfall amount to the financier up to the benefit limit of the level of cover you selected.

A Shortfall is the difference between the amount owed to the financier and the greater of;


  • the value of the vehicle as reasonably determined by Eric as the trade value of the current edition of the Glass’s AutoEdge (for a Vehicle which is the equivalent age, make, condition and model as your vehicle), and
  • the price paid by the dealer following the Handback.


Otherwise should you wish to Retain your vehicle -

Monthly Payment Option Benefit:


As an alternative to the Handback of your vehicle to the dealer, you can choose to use the Monthly Payment Option Benefit
to contribute towards your monthly repayments under your loan.


This benefit can be used for up to 6 monthly repayments,
limited by the cover level benefit for the level of cover you have selected.

Following use of this benefit, you may still choose to Handback your vehicle, should you still be unable to perform your


Dependent on current Finance Term remaining

COVER LEVELS (Finance Shortfall Amount)

Determined automatically based on Finance Amount & Finance Term remaining. One of three levels will be made available:






At Finance Term completion

30 days from commencement of policy purchase

​​​​​​​Please check PDS for all exclusions.

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*Please refer to the relevant PDS for full terms, conditions, exclusions and key factors that influence the cost

Redundancy Insurance that allows you hand back your vehicle. Available on Consumer Loans, Leases and Novated Leases. Accident and sickeness Insurance that allows you to hand back the vehicle in the ecent you are unable to work. Peace of Mind.

General Advice Warning: These product covers are provided by Car Cover Pty Ltd as Authorised Representative (AR 1249208) for Eric Insurance Limited (AFSL 238279). The products and features contained are a guide only and may contain general advice which does not take into account personal financial circumstances. The relevant Product Disclosure Statement (PDS) and Financial Services Guie (FSG) should be considered prior to making a purchase decision about a product. As benefits available are subject to change without notice, please refer to the PDS/FSG for terms, conditions and cover availability.