Insurance policies available through WhipSmart

A novated lease involves shared financial commitments. The right insurance helps 
protect you against unexpected events that could affect your ability to meet them.

Insurance Comparison

Compare different insurance types to understand which coverage is right for your novated lease.

 

Coverage Type

What It Covers

When It Applies

Duration

Status

Comprehensive Insurance

Vehicle damage, theft, fire, weather events, third-party liability

Accidents, theft, natural disasters

Policy 
duration

Required

Total Loss / Gap

Difference between insurance payout and remaining lease balance

Vehicle write-off, total loss

Single event payment

Optional

Lease Protection

Lease payments during unemployment or inability to work

Redundancy, illness, injury

6-12 months typical

Optional

Sickness & Accident

Lease payments when unable to work due to illness or injury

Medical conditions, accidents

Up to 
12 months

Optional

Standard Novated Rates

Comprehensive InsuranceRequired

What It Covers

Vehicle damage, theft, fire, weather events, third-party liability

When It Applies

Accidents, theft, natural disasters

Duration

Policy duration

Total Loss / GapOptional

What It Covers

Difference between insurance payout and remaining lease balance

When It Applies

Vehicle write-off, total loss

Duration

Single event payment

Lease ProtectionOptional

What It Covers

Lease payments during unemployment or inability to work

When It Applies

Redundancy, illness, injury

Duration

6-12 months typical

Sickness & AccidentOptional

What It Covers

Lease payments when unable to work due to illness or injury

When It Applies

Medical conditions, accidents

Duration

Up to 12 months

Frequently Asked Questions

Have a specific question?

Is insurance mandatory for a novated lease?

Yes, comprehensive motor vehicle insurance is mandatory for virtually all novated leases. This is because the financier holds an interest in the vehicle and requires it
 to be protected against damage, theft, and other risks. Additional coverage like 
gap insurance and lease protection is optional but highly recommended.

What happens if my car is written off?

If your car is written off, your comprehensive insurer will pay out the market value of the vehicle at the time of the loss. The problem is that in the early years of a lease, the payout amount is often less than your remaining lease balance — this gap is your financial exposure. With Gap Cover, this shortfall is covered and you can walk away without an unexpected debt.

What if I lose my job or can't work?

If you lose your employment or are unable to work, the lease reverts to a personal finance arrangement where repayments are made from your after-tax income, or it can be transferred to a new employer.

If you have Lease Protection Insurance, your policy may cover your monthly repayments for a specified period during redundancy or illness.

Can insurance be salary packaged?

Yes, at WhipSmart we bundle your insurance premiums into your lease payments so they are paid entirely from your pre-tax salary to maximize your tax savings.

Are there exclusions or waiting periods?

At WhipSmart, we typically see a 30-day waiting period for lease protection benefits to kick in, and coverage generally doesn’t apply if you resign voluntarily or are let go for misconduct.

Our comprehensive insurance excludes things like driving without a valid license, being under the influence, or using your car for business like Uber or food delivery.

How to choose the right insurance provider

At WhipSmart, you’re welcome to choose any comprehensive insurance provider that fits your needs, though opting for our preferred partner, Vero, ensures your policy includes gap cover as standard and integrates seamlessly with your salary packaging.

If you decide to go with your own insurer, just keep in mind that you’ll need to pay the premium upfront and then submit the tax invoice to us for a GST-free reimbursement from your lease funds.