Deciding on the most suitable car insurance can be just as confusing as buying a vehicle for the first time. There is a wide variety of options for buying a car insurance policy, and each one has its own advantages and drawbacks to be wary of. But don’t let this overwhelm you. The process for finding the right policy is simple: shop around, compare and select the one that will best meet your needs.
To help you decide on the best-suited car insurance for you, refer to this all-inclusive guide on what the different car insurances cover (and what they don’t).
Comprehensive Car Insurance
Comprehensive car insurance is the most expensive option, yet the favourite of most car insurance buyers. It’s popular because it covers not only your car but also your accountability for any harm or destruction it may cause to other vehicles. Specifically, comprehensive car insurance provides full service or renewal of your car in incidents like car theft, car crash, fire, and damage caused by extreme weather.
Aside from that, it also offers optional extra cover such as hire car and windscreen replacement. You also have a choice whether to opt for market value or agreed value as an addendum to your policy. In these addendums, you are provided with a “say” in how much you will be compensated in case of car theft or car depreciation. However, these optional purchases and addendums will add to your premiums.
Even though comprehensive car insurance is considered to be the most extensive in terms of coverage, it does not cover you for everything. Comprehensive car insurance is generally not liable for damages incurred by other persons who will be driving your car unless you opt to include it in your policy. Moreover, if the driver is intoxicated with alcohol or drugs, the damage won’t be covered.
Third-Party Property Car Insurance
Generally, third party car insurance will cover damage repairs on somebody else’s car or property but not on your car, especially if you are to blame for a collision. It is also inclusive of liability coverage in the form of financial aid whenever legal proceedings are involved due to accidental damage. However, this liability policy doesn’t stretch to personal harm.
If you want to upgrade third party insurance, you can choose to include Third Party Fire and Theft Insurance as an additional security option. Fire and theft insurance offers considerable cover measures just in case your vehicle is damaged by fire or if it gets stolen.
Also read: Car Dealer Insurance Crackdown
Compulsory third-party (CTP) or sometimes referred to as a Green Slip is mandatory car insurance for all registered vehicles in Australia. Drivers or vehicle owners of vehicles without CTP insurance detected by traffic monitoring cameras will be reprimanded accordingly.
This type of scheme generally covers all injuries or even death of crash victims like pedestrians and other persons on the road in case your car is involved in a vehicular accident. Your Green Slip will safeguard you from financial liabilities such as compensation claims of victims or lawsuits that might emerge.
Since it is inexpensive, it won’t cover any repair costs to both damaged vehicles. If your car or the other person’s car gets the slightest scratch or becomes completely wrecked after an accident, your CTP insurance policy will not pay for the damage repairs. Also, it doesn’t cover vehicle theft. You are held accountable for any financial obligations unless you’ve acquired more extensive car insurance.
What are Insurance Premiums
A premium is an amount that you pay annually or monthly for insurance. Research says that the average premium for comprehensive insurance in Australia ranges from $500 to $2,000 a year. The following are the factors in which your premium calculation is dependent and how you can reduce them.
- Type of insurance cover and add on options – The higher level of insurance you buy and the more add on options you avail means a higher premium for you.
- Storage location – If the risk of damage or theft is high in your storage option, higher premiums will be imposed. To solve this, install security devices on your car, park or store your car in a more secure area or better lock it up in a garage.
- Driver’s age – Drivers under 25 years of age are usually given higher premium charges by insurers because of the fact that young drivers are less experienced on the road.
- Driving and insurance history – A bad driving record means higher premiums. Maintain a good driving history and lessen the risk of having to make a claim.
- Vehicle condition and usage – Premiums are depending on the make, model, or year of the car. The same thing the general usage speaks for the premium. If the car is used less often, insurers will ask lower premium payments.
- Car valuing options – Agreed value will cost you a higher premium than insuring for market value.
How to Get the Best Deal
Comparing policy offers can be both time consuming and frustrating. To get the best possible deal on car insurance, here are some tips.
- Research – The more times you shop around and compare quotes, the more likely you are to get the best deal. Consider carefully the type of vehicle insurance that you need as well as the add-ons.
- Lessen your claim risks – Low claim points can decrease insurance premiums. The cheaper car insurance premiums can give you a better deal.
- Lower your insurance price – Cheaper insurance deals don’t necessarily mean bad insurance. If there is no necessity for the add-ons, leave them out.
- Read and understand the policy – There’s no better way to get the best deals other than studying the key facts and policy statements. Determine what cover fits right for your car and that will help you out in times you need it. Also, check policy exclusions that you might need in the future.
- Try asking for a discount – Always ask for discount offers. Inquire if getting bundle insurance offers can grant you any rebates. More so, phone up your current insurance agent and challenge them to offer their best quote for your car insurance.
Get Insured with Aussie Car Loans
Armed with the knowledge of what various car insurances cover, you’ll be able to choose the best type for your vehicle. If you require car insurance in Sydney, Melbourne, or Brisbane; Aussie Car Loans has a wide range of products that will help protect your family and vehicle, as soon as applications have resumed