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5 Things To Know Before Choosing Car Insurance
So, it is a well-known fact that Australia is the home for a lot of cars, but did you know that the estimated number of cars that Aussies own is a whopping 18 million. I mean that is a LOT! It just shows how big of a country Australia is. We all know that driving is an integral part of a normal Aussie’s life, so isn’t it important to ensure the car that drives us around and helps our day-to-day life?
When it comes to cars, no one can is a cent percent sure of what would happen when traveling on road. You might be an excellent driver but accidents happening cannot be your fault but still be something which would give you losses. This is a thing that is completely out of your control.
Ensuring your car is the best way to protect yourself from things that happen in an unexpected way. But, there are a few important things you need to understand before you sign the dotted line, and those important things are listed below.
Be in terms with the important terms
Here are some of the important terms listed with the car insurance policies:
● Accident: An event that is unexpected or unforeseeable.
... ● Agreed value: The amount your car is covered for over the length of a policy — this is an amount that’s agreed on between both you and the insurer. However, some providers don’t offer this as an option.
● Claim: Any application you make to your insurer after an accident, so long as it’s covered under your policy.
● Comprehensive cover: Coverage for the cost of damage — either to you or caused by you — after an accident. You’ll probably still have to pay an excess, but at least your repairs will be covered whether you were at fault or someone else was.
● CTP: Compulsory third-party (CTP) insurance is the minimum cover that every driver in Australia needs. It’s illegal to not have it. It covers you in the event someone is injured during an accident you’re responsible for.
● Excess: When you make a claim and you’re at fault, you usually have to pay an agreed excess before your claim can be processed.
● Premium: Your on-going payment (either fortnightly, monthly, or annually) to maintain your car insurance policy.
● Risk: The likelihood of you making a claim that the insurer will have to pay out on. This may be different between a number of providers.
● Write-off: When the cost of your car’s repairs is considered too expensive to be worth fixing. If you have comprehensive coverage you could be paid out a specified amount or given a similar vehicle.
Read the PDS
Here is something which the people don’t follow at all, mainly because of how a chore it is. But it is really important to read the Product Disclosure Statement (PDS) as it will help you understand what you’re getting covered and for what you’re not.
Under Australian law, your insurer must include all the terms and conditions of the policy in the PDS or a policy document included with the PDS. The details are explained in plain English so you don’t need any kind of prior experience to go through this.
Also, an important pointer to keep in mind, the PDS is not customized or specified for your personal needs and financial situation. So we surely recommend you to read the PDS from your car insurers without fail. This will help you make the best decision according to your circumstances.
If you still feel that you are confused you have insurance brokers Perth like us, who will help you find the best insurer there is based on your needs and make sure that the insurance that you take up is the best you can get for your car.
Figure out how often you drive
These days, drivers are lucky enough to have a wealth of car insurance options at their feet. And one alternative policy that’s on the rise is Pay as You Drive (PAYD) insurance.
Drivers these days are lucky to have the luxury of car insurance options right at their feet. There is also an alternative in this which is the Pay as You Drive (PAYD) insurance option.
PAYD is defined by The Australian Securities and Investments Commission as “The premium is based on the number of kilometers you expect to drive in the coming year. If during the year, you think you will drive further than planned, you can ‘top up’ your kilometers for an additional cost. However, if you exceed your elected kilometers and don’t tell the insurer, your level of cover may be reduced.”
Thus if you have a fairly good idea of how much you would drive in the upcoming year then you have good chances of ending up with a lower premium when choosing this option.
Comprehensive or third party cover — Decide
Aside from PAYD, the car insurers offer you three different levels of covers. But obviously the higher the coverage you want, the more you’ll pay in premiums. Here’s how they stack up:
● Comprehensive: The gold-standard of car insurance! It will cover the cost of damage to your vehicle and any others involved in an accident, as well as fire and theft cover.
● Third-party property, fire, and theft: Covers any damage to other people’s vehicles if you’re responsible for the accident, but it doesn’t cover damage to your own car. However, you will be covered in the event your car is stolen, damaged by fire, or is maliciously damaged.
● Third-party property damage: This is a step above the mandatory CTP insurance, covering the cost of repairs to property damage you cause. It’s usually the most affordable option but remembers your own car damage won’t be covered if you’re at fault.
Compare the quotes
Okay here is a reality check; there is no one-stop-fit-all approach for your car insurance. So it is important for you to browse different places so that you can find the best place which would suit you and your current lifestyle.
Not all the car insurance products are equal, as each of them provides something different on the basis of comprehensive, third party property damage and third party property, etc., these will not have the same inclusions across the board.
So it is absolutely crucial for you to have insurance brokers like Millpoint Insurance who help you find the right provider and help you even with the PDS.
Our trained brokers will help you break down complex policies and allow you to get easy info that will cover everything from premium to a value that you will agree to. Being through with you every step of the way and indicating pointers that would help you find the right insurer based on your needs is what we are there for.
We all know how important cars are in our life, right from managing grocery shopping, to school drop-offs and heading home after work, a car helps through all of that. Having the right car insurance can help you get back on the road faster after an accident, and will give you financial peace of mind knowing that a portion of the cost of repairs is covered.
So if you want to get covered properly then Millpoint is the best place for you and your family.
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