Refunds for Guaranteed Asset Protection (GAP) insurance policies

QBE sells two GAP insurance policies:

  • Finance GAP, which pays the shortfall between what you owe on your finance agreement and what your comprehensive motor vehicle insurer pays when your vehicle is written off or stolen, and
  • Purchase Price GAP, which pays the shortfall between what you paid upfront for your vehicle and what your comprehensive motor insurer pays you if yor vehicle is written off or stolen.

This shortfall is commonly known as a ‘gap’.

QBE’s GAP insurance policies also provide additional benefits to cover for the extra costs associated with replacing a car, such as stamp duty, dealer costs and any compulsory insurances.

For more details about your GAP insurance policy, please check your Product Disclosure Statement (PDS). Call us on 1300 022 509 if you’d like us to send you a copy.

Last year, the Australian Securities & Investments Commission (ASIC – which is Australia’s financial services regulator) looked into the sale of GAP insurance policies and found that a number of customers had been sold policies they didn’t need or they were sold more cover than they needed. 

We’ve identified you as one of those customers. The letter we’ve sent you explains why we want to give you a refund.

You can also visit ASIC's MoneySmart website and search for 'QBE refunds'.

If we’re giving you the option of cancelling your policy, it’s because we think you may have paid for cover you didn't need, and we want to refund your premium. 

Because we've signed a contract with you, QBE can’t just cancel your policy unless you ask us to.

QBE can’t give you advice based on your personal circumstances, but to help you decide we recommend that you:

  1. Read your letter. This will tell you why we think we need to give you a refund.

     It also tells you what you need to do to get it.

  2. Read the fact sheet and consider your circumstances. The fact sheet gives more information about the products we've sold and why we're providing refunds. You should compare this to your circumstances.
  3. Let us know if you want a refund or keep your policy. Complete the table in your letter and return it to us by email or post.
  4. Phone us on 1300 022 509

    Email us at:

    You can also visit ASIC's MoneySmart website and search for 'QBE refunds'.

We’ve identified that customers who were sold GAP insurance policies and who paid a deposit of more than 20% upfront for the vehicle were unlikely to benefit from their policy because there was unlikely to be a gap to insure.

This is because, even though the value of a vehicle falls over time, due to having paid a large deposit the value of the vehicle was unlikely to fall below the balance owed under the finance agreement.

We’re giving some of our GAP insurance customers a partial refund of their GAP insurance premium as we believe they had at least one year’s worth of New for Old comprehensive insurance cover, whoever they were insured with.

You may be eligible for a larger refund, up to the maximum of your GAP insurance policy premium, if you held New for Old  cover for longer. Your certificate(s) of insurance will help us assess this and recalculate your refund, so please send it to us. If you can’t find them, contact your Comprehensive Motor Vehicle insurer and ask for copies.

Most comprehensive motor vehicle insurance policies include New for Old cover. So if you bought your vehicle new and it is written off or stolen during the time you have this cover, your insurer would simply replace your vehicle instead of paying you or your financier cash. Depending on your comprehensive motor vehicle insurer, you could have had up to 4 years of this cover.

Customers with new for old cover were unlikely to claim under their GAP insurance policy because their comprehensive motor vehicle insurer would have replaced their vehicle, meaning they wouldn’t have had a 'gap' to pay.

You may want to keep your GAP insurance policy if you believe  you have a 'gap' to be insured. This could occur if the value of your vehicle has fallen and is worth less than what you owe under your finance agreement, if you don’t have new for old cover or if you only have it for a short period of time. You should consider your own circumstances, read the PDS and may want to seek advice before making a decision.

If you cancel your policy we’ll pay you a full refund. Your policy will remain active up until the time it’s cancelled. You also can continue to make claims for incidents before that time, but you can’t claim for any incident which happens after you cancel.  

Any existing claims you’ve made aren’t affected.

If you keep your policy, you’ll continue to be covered up to the time it expires.

If you’re also eligible for a partial refund, we’ll pay you that partial refund. We won’t cancel your policy and you’ll continue to be covered until it expires.

We’d like to hear from you within 30 days, so we can get your refund to you quickly.

Even if we don’t hear from you in that time, we still believe you may have bought insurance you didn’t need and we’ll send you a partial refund. Your policy will continue up to its expiry.

If, after receiving the partial refund, you decide you want to cancel your policy, please contact us and we’ll pay you the balance of the refund. At that time your cover will cease. 

Depending on your circumstances, this refund may affect your tax affairs. If you have any queries, please seek professional advice.
Yes, because we want to return you to a position you would have been in had you not taken out the insurance or had more insurance than you needed. The amount we’ll refund you is therefore calculated to include interest.

You can call our Customer Care Unit on 1300 650 503.

If we haven’t responded to your complaint or you’re not happy with how we’ve tried to resolve it you can ask for your complaint to go through our dispute resolution process. You can do this by contacting our Customer Care Unit and ask for your complaint to be escalated to one of our Dispute Resolution Specialists.

For more information refer to our complaints & dispute page.

QBE is also an member of the Financial Ombudsman Service (FOS) and if we’ve taken more than 45 days to respond to your complaint or you’re unhappy with how we’ve resolved it you can contact FOS directly by visting or calling 1800 367 287.

Accepting a refund won’t affect your right to complain or go to FOS.

If you need more information

Phone us on 1300 022 509

Email us at

You can also visit ASIC's MoneySmart website and search for 'QBE refunds'.