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Important terms − the Glossary

With Alphera it has never been as easy to finance the car of your dreams. Should you still have any questions – you'll find the answers here.

Beginning of insurance cover

Insurance cover usually begins once the insurance policy has been taken up by paying the premium and the insurance tax, however on the date agreed at the earliest. If insurance cover begins even before the insurance policy is taken up, this requires specific confirmation by the insurer (provisional cover). Handing over the confirmation of insurance required for registering the car with the registration office is also considered confirmation of provisional cover for a third-party liability insurance (provisional insurance card).

Comprehensive insurance

The insured motor vehicle is the subject of the comprehensive insurance. The comprehensive insurance compensates losses caused as a result of damage, wrecking or loss of the insured vehicle. A distinction is made between part comprehensive and comprehensive insurance based on the extent of cover.


The insured person can agree a specific deductible for his comprehensive insurance. If he files a claim under the comprehensive insurance, he then pays this amount. There is no deductible with third-party liability insurance.

Guaranteed Asset Protection (GAP)

It ensures that if your vehicle is stolen and not recovered or destroyed in an accident and there is an insurance settlement, you are not responsible for any additional charges other than your insurance deductible, providing that you have fulfilled all of the contractual agreements of your lease prior to the accident or theft.

Insurance policy/certificate

A document issued by the insurer about the insurance contract that contains the entire contents of the contract.

Insurance premium

Money paid by the insured person to the insurer for its acceptance of the risk.

Insurance verification

The process of obtaining verbal or written confirmation of required coverage from your insurance agent or company.

Part comprehensive insurance

In contrast to the third-party liability insurance, the part comprehensive insurance covers the insured person's own vehicle. The insurance provides compensation for damage caused by fire or explosion, theft, storm, hail, lightening, flooding, damage caused by furred game, glass breakage and gnawing damage.

PPI amount

In the event that a leased vehicle is stolen or totaled, the difference between the early termination payoff amount, not including any past-due amounts, and the amount for which the vehicle is insured before the insurance deductible and any other policy deductions are subtracted. The definition of the GAP amount may vary in different states or in different lease agreements.

Replacement value

The replacement value is the amount payable for a replacement vehicle of the same kind and quality with the same standard of wear in the region of the insured person's place of residence.

Residual debt insurance

A finance agreement (product example) can be supplemented by an option which allows the customer to have outstanding financial commitments assumed by a residual debt insurance in the event of his general disability or death. The insurance premium is co-financed via the loan or leasing agreement and is thus already included in the monthly payments. The amount of the insurance premium depends on the residual value of the vehicle, among other things.

Service contract (or Mechanical breakdown coverage or Extended warranty)

A contract you may purchase to cover such expenses as the repair or replacement of vehicle components and, in some cases, related services such as towing or replacement rental cars. In most cases, service contracts do not cover routine maintenance.

Third-party liability insurance

This insurance includes compensation paid for damage caused to third parties by driving the insured motor vehicle. It pays claims based on personal injury, property and financial damage and besides the owner also protects any other driver of the vehicle. The insurance does not only pay compensation, it also wards of unfounded claims.


A guarantee that the vehicle will function and perform as specified. A warranty usually covers specific mechanical problems during a specified period of time or number of miles.


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