Why it's worth having...

Since your novated lease payments come directly out of your pay each month, losing your job or having your contract end early can make it pretty tough to stay on top of the payments. If you've got Lease Protection Insurance and it takes you more than 30 days to find a new gig, you'll be covered for:

• Lease payments for up to 10 months of unemployment, or until you find a new job, or until the original end date of your contract, whichever happens first
• A $400 monthly payment to cover your car running costs (petrol, insurance, etc.), up to $4,000 in total payments
• The option to return your car if you can't continue with the lease (provided that, among others, the insurer has paid for 3 consecutive months of lease payments on your behalf up to immediately before 10 months of lease payments, and such return is in line with the lease agreement)

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

What's not included...

The policy doesn't apply if you lose your job because of voluntary redundancy, resignation, retirement or abandonment of employment. It also doesn't cover dismissal due to misconduct, or losing your job because of alcoholism, drug addiction or other influence.

Lease Protection Insurance is also not valid if you knew about your involuntary unemployment before taking out the policy, or if you lose your job in the first 30 days of having the policy.

The fine print

These examples are only provided as a summary and are not exhaustive. Please read the Product Disclosure Statement  for all of the important product terms and conditions and other info that will be relevant for you.

For example

Two years into her four-year lease, Leah’s department is downsized and she’s made involuntarily redundant. After 30 days she hasn’t been able to find a new job, so her Lease Protection Insurance kicks-in.

From that point, her monthly lease payments are taken care of, and she gets paid $400 a month to cover the cost of driving. Leah can claim these payments for up to 10 months, taking away a whole lot of stress while she looks for work.

After three months of payments, Leah decides she doesn’t need the car anymore and goes for the ‘handback option’. She hands back the car to the insurer who arranges a full payout of the outstanding lease amount.

The maximum amount that Leah can claim during her period of insurance is $40,000 (this is inclusive of all amounts, including the payout amount, the lease payments and the running costs payments made by the insurer to Leah).

Important documents

If you’re having trouble accessing any of these documents, get in touch and Oly will organise copies for you by another method.

For your reference Oly suggests hanging onto copies of these Product Disclosure Statements and Financial Services Guides with your lease documentation.