Novated Lease Insurance

INSURANCE

Choose the right insurance for you and your lease

Make an informed choice and drive with confidence

At Maxxia it’s important to us that you understand the full range of optional insurance products available to you as part of the novated lease estimate process. Read on for a full breakdown of your coverage options, all designed to provide financial protection throughout the life of your lease – from start to finish.

Comprehensive Insurance

Reliable and competitive Comprehensive Insurance is a must so you and your loved ones can travel with confidence. With a host of features to suit a wide range of budgets and needs, it’s worth your time to make sure you’re covered.

Total Loss Assist Insurance

Cover in addition to your comprehensive motor vehicle insurance payout if your car is written off.

Lease Protection Insurance

Cover your lease repayments and receive running cost benefits if you become involuntarily unemployed.

Guaranteed Buy Back Insurance

Cover in most scenarios if the market value of your car is less than the residual amount at the end of your full lease term.

Please be aware that the below are summaries of each insurance product and cover and have been prepared without taking into account your personal objectives, financial situations or needs. For all the product terms and conditions please read the relevant Product Disclosure Statements. The Financial Services Guides will also explain the services that Maxxia provide as an Authorised Representative of the insurers.

Comprehensive Insurance

What is it?

No matter how careful you might be with your car, damage and theft can still occur. Maxxia offers access to reliable, competitive car insurance through Allianz Insurance so you and your loved ones can travel with confidence.

With a host of features to suit a wide range of needs, it’s worth your time to make sure you’re covered.

Why it’s a good idea

With comprehensive insurance, if an insured event effects your vehicle or someone else’s, you can breathe easy knowing you’ve got the support you need.

The insurance cover includes:

Accidental damage to your car, including damage caused by fire, hail, flood, storm, or earthquake.
Loss of your vehicle when lost by theft and not found.
If your vehicle suffers malicious damage.
Cover for damage to other people’s property caused by your vehicle.
Hire vehicle costs following an accident or theft up to the policy sub-limit.

What it doesn’t cover

The damage, loss, or injury caused while your vehicle is being driven by a person under the influence of any drug or alcohol or unlicensed at the time of the accident OR
If your vehicle is being used for carrying passengers for hire or reward.

The examples provided are only a summary. Please read the Product Disclosure Statement for all of the product terms and conditions.

Example scenario

Jaime’s car is stolen from outside his house, which cannot be found and his car is not recoverable because of the theft. Jamie then lodges a claim with his insurer and the claim is assessed.

Where the loss falls within the scope of the cover provided the comprehensive insurer reviews and approves a Total Loss pay-out to Jaime for the loss of his car by theft.

A Hire Car benefit can also be provided, which pays for the hire of an alternative vehicle, up to the policy sub-limit, whilst Allianz is working through Jaime’s claim.

Please read the Product Disclosure Statement for all of the product terms and conditions.

Total Loss Assist Insurance

Total Loss Assist (TLA) provides coverage in the event that your vehicle is written off or declared a total loss by your comprehensive insurer.

While comprehensive insurance covers the total loss of the vehicle, Total Loss Assist covers the difference between the comprehensive insurance payout and either the original price you paid for the vehicle or the amount needed to discharge the lease, whichever is the greater amount.

Why it’s a good idea

TLA offers the added security of knowing that your coverage extends beyond the comprehensive insurance payout. It provides additional protection against financial loss and means you don’t have to worry about paying out the remainder of the lease or losing money on the depreciation of your car in the event it is declared a total loss.

TLA offers to pay the greater of either;

The gap between the total loss pay-out and the amount needed to payout the lease.
The difference between the total loss pay-out and the vehicle purchase price.

If either amount is below $5,000, a minimum benefit amount of $5,000 will be paid. The maximum coverage amount is based on the purchase price of the vehicle, with benefit payments available up to $50,000.

What it doesn’t cover

Some exclusions are:

The comprehensive insurer must pay the total loss in full. If there has only been a partial payment from the insurer then you are excluded from making a claim.
TLA will not pay for any arrears in the finance contract (such as penalties for late payments or negative equity).
TLA will not payout if the vehicle is used for hire or carriage (Uber, driver instruction).

Example scenario

After a collision three years into her lease, Diya’s vehicle is written off by her comprehensive motor vehicle insurer, with her payout totalling $19,000.

The original price of her car was $40,000 and the finance contract payout amount is $21,000. As the purchase price was between $35,001 and $50,000, Diya is insured for a maximum $25,000. To process her claim, the insurer works out which has the greater gap or shortfall. To process her claim, the insurer works out which has the greater gap or shortfall.

Finance contract shortfall $21,000 - $19,000 = $2,000
Purchase price shortfall $40,000 - $19,000 = $21,000

Because the gap between the comprehensive insurance payout and the original price is the greater amount, the benefit payable to Diya = $21,000.

Of this amount, $2,000 will be paid to the financier to settle the finance contract, and the remaining $19,000 will be paid to Diya.

Please read the Product Disclosure Statement for all of the product terms and conditions.

Lease Protection Insurance

When life throws up those big challenges like losing your job unexpectedly, Lease Protection Insurance is there to assist with not only covering your lease payments while you’re out of work, but the costs associated with running your car as well.

Why it’s a good idea

As your novated lease is paid directly from your salary each pay, a sudden change in your employment circumstances could mean a stop to your lease payments.

So if you’re made involuntarily unemployed or your fixed term contract is terminated early and it takes more than 30 days to find new gainful employment, Lease Protection Insurance could help.

Features include;

Having your lease payments covered for up to 10 months of the period of unemployment; or until you find new employment; or until the end date of your contract, whichever occurs first.
A $400 monthly benefit for your vehicle’s running costs that is paid directly to you for the duration of the claim (maximum total amount payable $4,000).
A vehicle handback option should you need to return the car.

The maximum amount payable during the term of the cover for all payments is $40,000.

What it doesn’t cover

Voluntary redundancy, resignation, retirement or abandonment of employment.
Dismissal due to misconduct, or as a result of alcoholism, drug addiction or their influence.
Involuntary unemployment which was known to be imminent before the policy was purchased or occurs during the first 30 days of the policy commencing.

Example scenario

Two years into her four year lease, Justine’s department is downsized and she is made involuntarily redundant. Justine initiates a claim, after 30 days of searching she has not yet found new employment and so her Lease Protection Insurance kicks-in.

From this point on, her monthly lease payments are taken care of and her $400 monthly running cost benefit is paid directly to her. Justine can now claim up to 10 months’ worth of payments, all helping to reduce financial stress and worry while Justine continues to look for work!

Handback option – after three months of payments, Justine can also hand back the car to the insurer who will arrange a full payout of the outstanding lease amount.

The maximum amount that Justine can claim during her period of insurance is $40,000.

Please read the Product Disclosure Statement for all of the product terms and conditions.

Guaranteed Buy Back Insurance

Guaranteed Buy Back Insurance (GBB) is designed to provide protection for customers whose lease goes full term (and who’ve travelled under 30,000kms per year), it offers cover for the difference between the market value of your car and your end of lease residual payment.

At the end of a novated lease there is a final amount you have owing to the finance company – this is called the residual payment. A popular way of covering the residual payment is to sell your leased vehicle and use these funds to make the payment.

If however, the market value of your car is less than the residual value you will be left with a gap of money owning – GBB provides protection in the event of this scenario and covers this gap for you.

The insurer guarantees to buy the vehicle from you at the end of your lease for an agreed Guaranteed Buyback Value (GBV), which could help to cover any gap between the market value and the residual payment.

Why it’s a good idea

When you get to the end of your novated lease (provided it’s reached its full term and you’ve travelled under 30,000kms per year), your car's value may not be enough to cover your residual payment and you’ll have to make up the difference.
GBB provides protection in the event of this scenario and covers this gap for you.

Features include;

A one-time premium with no excess.
Cover for the difference between what you can sell your car for and your end of lease residual payment, provided your lease goes full term and you travel less than 30,000km on average per year.
If you terminate your lease early or if you travel more than 30,000km per year, we will calculate your GBV based on ATO guidelines and adjusted for the extra distance travelled. You may still however be able to claim and contribute to the outstanding finance amount.

The maximum amount payable during the term of the cover is $25,000.

What it doesn’t cover

If the market value of the vehicle is greater than the GBV.
If the car has travelled on average more than 50,000km per year for the life of the lease.
If the vehicle is sold to someone other than the insurer.
Early lease termination up to two years into the lease.

Example scenario

Michael leases a new vehicle prices at $35,000 over a five year term. At the end of the five years he has travelled less than 30,000kms on average per year. The residual value on the lease is $10,830 and the market value of the vehicle is $8,200, so the difference or shortfall between the two is $2,630,

Michael has GBB and because the lease has reached full term and he has travelled less than 30,000kms per year on average, his Guaranteed Buyback Value (GBV) amount will be his residual value.

As a result, he can simply hand the vehicle over to the insurer, who will pay the financier the market value of $8,200 plus the shortfall amount of $2,630, totalling the residual payment of $10,830.

Michael, therefore, has no shortfall amount to pay the financier.

Please read the Product Disclosure Statement for all of the product terms and conditions.

Important Documents

If you are unable to access the documents please contact us and we will organise copies for you via an alternate method.

For your reference we suggest retaining copies of these Product Disclosure Statements and Financial Services Guides with your lease documentation.

Product Disclosure Statements (PDSs)

Please download and read the below Product Disclosure Statements for all details, terms and conditions for each insurance product.

Product Disclosure Statement - Allianz Motor Vehicle Lease Insurance (Comprehensive Policy) - Issued 1 September 2021

Product Disclosure Statement - Pacific International Insurance Motor Vehicle Lease Insurance Options Policy (combined PDS and FSG) - Issued October 2024

Product Disclosure Statement - EML Wallet - Issued November 2023 (please note this is not an insurance product)

Financial Services Guide (FSGs)

The Financial Services Guides explain the services that Maxxia provides as an authorised representative of various providers.

Financial Services Guide - Allianz Motor Vehicle Lease Insurance - Issued 30 September 2021

Financial Services Guide - Pacific International Insurance Motor Vehicle Lease Insurance Options Policy (combined PDS and FSG) - Issued October 2024

Financial Services Guide - Coverforce Total Loss Assist, Lease Protection Insurance, Residual Protection Cover and Safeguard Ultimate Warranty - Issued June 2021

Financial Services Guide - EML Wallet - Issued January 2020 (please note this is not an insurance product)

Target Market Determinations (TMDs)

The Target Market Determinations describes the target market for these insurance products, distribution conditions and other information about these insurance products.

Target Market Determination – Allianz Motor Vehicle Lease Insurance (Comprehensive Policy) - Issued 17 June 2022

Target Market Determination – Pacific International Insurance Motor Vehicle Lease Insurance Options Policy - Issued September 2024

Previous Policies

If you started your insurance policy prior to the dates listed in the FSG, PDS and TMD sections above, you can find the documents relevant to you using the search tool below.

Contact Details

General insurance enquiries: 1300 123 123 or [email protected]
Allianz comprehensive motor insurance claims: 1300 402 030 or www.allianzclaims.com.au
For all other novated leasing insurance claims: 1300 882 042 or [email protected]

Important Information

Insurance
If you chose any of the optional novated lease insurance products, it is included in the cost of your lease. You will receive your policy document when you enter into your lease. Maxxia (ABN 39 082 449 036) (Maxxia) is authorised by:
• Allianz Australia Insurance Limited (ABN 15 000 122 850, AFSL 234708) to provide general advice on and arrange Motor Vehicle Lease Insurance (Comprehensive Policy) issued by Allianz.
• Coverforce Insurance Broking Victoria Pty Limited (ABN 45 127 707 813, AFSL 345986) to provide general advice on and arrange Lease Protection Insurance and Total Loss Assist Insurance issued by Professional Risk Underwriting Pty Ltd (ABN 80 103 953 073, AFSL 308076) and Safeguard Ultimate Warranty and Residual Protection Cover issued by Virginia Surety Company, Inc (ABN 080 339 957, AFSL 245579).
• Pacific International Insurance (ABN 83 169 311 193, AFSL 523921) to provide general advice on and arrange Motor Vehicle Lease Insurance Options Policy issued by Pacific International Insurance.

Insurance Disclosures
The Product Disclosures Statement (PDS) for each insurance product includes the full terms and conditions and the Financial Services Guide (FSG) includes information about the financial services Maxxia provides. The Target Market Determination (TMD) describes the target market for each insurance product, the distribution conditions and other information about these insurances. You can obtain these documents by visiting our website or contacting us at 1300 123 123 or [email protected].

Things you need to know: This guide does not constitute financial product advice. This general information doesn't take your personal circumstances into account. Please read the Product Disclosures Statement (PDS) and consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply, along with credit assessment criteria for lease and loan products. This availability of benefits is subject to your employer's approval. Maxxia may receive commissions in connection with its services.