Zurich Australia and Mercedes-Benz Financial Services Launch Elite Motor Insurance From July 1, With Finance Gap Cover of Up to 30% and EV Liability Cover of Up to $10 Million

Zurich Australia and Mercedes-Benz Financial Services Australia have launched a comprehensive motor insurance product aimed at owners of Mercedes-Benz vehicles. The announcement, made in a Zurich media release on July 1, 2026, describes a policy sold through the carmaker's network and backed by Zurich's underwriting technology. The details below come from that release. It is a company announcement, so claims about the product are the companies' own, and the policy wording, the Product Disclosure Statement and the Target Market Determination determine what is actually covered.

The product and who sells it

The product is called Mercedes-Benz Elite Motor Insurance. Zurich Australian Insurance Limited issues the insurance, and Mercedes-Benz Insurance distributes it. The release says the partnership builds on an existing relationship between Zurich and Mercedes-Benz. It is available from July 1, 2026 for personal and commercial Mercedes-Benz passenger and commercial vehicles, covering combustion, electric and hybrid models, and it is sold through authorised Mercedes-Benz agents from that date. The release describes the arrangement in plain terms: the carmaker's finance and insurance arm presents the product to buyers, and Zurich bears the insurance risk.

Technology and the customer process

According to the release, Zurich's proprietary technology automates the underwriting process, which it describes as efficient and seamless. The product is supported by a digital experience integrated into Mercedes-Benz Australia's insurance portal, where customers can manage policies and claims. Alex Morgan, Zurich's head of general insurance, said the launch brings a fully integrated, digital and efficient process from the initial application through to claims. Janelle Wall, head of insurance services at Mercedes-Benz Financial Services, described the product as a robust and digitally supported insurance solution. The release does not say how fast quotes or claims will be processed, or give any measures of service.

Key features

The release lists several features:

Finance gap cover. If a vehicle is a total loss, the cover can pay up to an additional 30% above the vehicle's agreed or market value. Finance gap cover addresses a common problem: a car financed with a loan may be worth less than the outstanding balance after an accident, and a standard policy that pays only the car's value leaves the owner with a shortfall. The release does not say how the 30% is calculated or what limits apply.

Repairs. Repairs are carried out by authorised Mercedes-Benz repairers using genuine parts. This is a significant feature for owners who want manufacturer-approved repairs, and it can affect repair cost, though the release does not discuss pricing.

New vehicle replacement. This is available for eligible vehicles. The release does not define eligibility, such as the age or mileage limits.

Hire vehicle cover. Standard hire vehicle cover applies to not-at-fault and theft claims. Optional add-ons include at-fault hire vehicle cover, excess-free windscreen cover, and tyre and rim cover.

Electric vehicle protections. The release says the product includes certain charging-related damage cover and up to $10 million in liability cover. Liability cover pays for damage a driver causes to other people or property. The release does not say whether the figure is the same for all vehicle types, and it does not detail the charging-related damage covered.

Conditions

The release states that cover is subject to eligibility criteria, terms, conditions, exclusions and limits, and tells customers to read the Product Disclosure Statement and Target Market Determination. These documents are required for general insurance products sold in Australia and set out what is covered, what is excluded and who the product is designed for.

How to compare it

A brand-linked policy is one option among many. A buyer comparing it with a general motor policy should look at several points the release does not cover: the premium and excess, the sum insured basis (agreed value or market value), the restriction to authorised repairers and whether that affects claims for older vehicles, the cap on finance gap cover, and the conditions for new vehicle replacement. The convenience of buying with the car and managing everything through one portal has value, but it can also reduce shopping around. The release gives no price information, so no assessment of value is possible from it.

The broader trend

The launch fits a pattern in which car manufacturers offer insurance integrated with their sales and finance operations. Zurich Australia has had other manufacturer relationships, but the release reviewed here does not discuss them, and this article does not rely on them. What can be said from the release is that the two companies describe the product as digital from application to claim, and that it is sold at the point where Mercedes-Benz agents arrange vehicle purchases.

A worked illustration

To see what finance gap cover can mean, consider a hypothetical car with an agreed value of 100,000 dollars. The release says the cover can pay up to an additional 30% above the agreed or market value for a covered total loss, so the maximum extra payment on that hypothetical car would be 30,000 dollars. That is simple arithmetic applied to an invented example, and not a figure from the release. Whether the extra payment is actually made depends on the outstanding finance and the policy terms, which a buyer should confirm before relying on the feature.

Limits

This article summarises a company media release and does not test the product's pricing or claims service. It is general information, not insurance advice.