Choosing car insurance –

Getting the best price and protection with your car insurance When bribe car indemnity, take clock time to compare the monetary value and understand what is ( and is not ) covered by different policies .

Types of car insurance

When deciding which type of policy will suit you, think about whether you can live without your car if it ‘s written off or stolen. besides consider if you can afford to pay for the damage to person else ‘s car if you have an accident .

Third party versus comprehensive insurance

  • Compulsory third party (CTP) insurance — included in your car registration cost (except in New South Wales, where you buy it separately). Also called green slip insurance. It covers the costs of compensation claims if you injure or kill someone in a car accident.
  • Third party property insurance — covers damage to other people’s property, including cars, when an accident is your fault.
  • Third party property, fire and theft insurance — covers property damage, and your car if it’s stolen or damaged by fire.
  • Comprehensive insurance — covers repairs to your car and repairs to other cars, even if the accident is your fault. It also covers your car if it’s stolen or damaged by fire, flood or vandalism.

How your car is valued

With comprehensive indemnity, you can choose how your car is valued. The value is the sum you ‘ll get if your car is written off or stolen :

  • Agreed value — a fixed amount that’s decided by you and your insurer.
  • Market value — the amount your car would have sold for, at the time of the accident.

If you use the market value, you do n’t know how much you ‘ll get if you claim, and you ca n’t change the measure. If you use an agreed respect, you ‘ll pay a higher premium .

Cost of car insurance

The total you pay each year for indemnity is called a premium. The insurance company works out your premium by estimating how likely it is that you ‘ll make a claim .
You may besides have to pay an excess when you make a claim. The excess is the sum you agree to contribute towards the cost of a claim .
The premium and excess you pay will depend on your policy and on other factors, such as your historic period. For example, a driver under 25 may have to pay a higher excess. This is because people under 25 are involved in more accidents .
If you ’ re struggling to pay your cable car indemnity premiums or excess, contact your insurance company straight away. Explain your position and tell them you would like to apply for fiscal adversity .
For model, they may provide aid to meet your excess if you have an accident and you ‘re at fault and necessitate to make a call .

No claim bonus

Some policies include a no claim bonus. This means you pay a lower bounty if you do n’t make a claim for a sealed menstruation of time .
Read the policy to understand what claims affect your bonus and if there are any limits .

Paying for add-on insurance

Some car dealers offer accessory indemnity when you buy a new or use car. These products are frequently not adept value for money, for exemplar the insurance extras sold by car dealers .
If you ‘re on a depleted income, Good Shepherd Microfinance offers low-cost insurance policies for cars that are worth up to $ 5,000 .

Getting the best deal on car insurance

To help you get the best deal on car indemnity :

  • Third party property insurance might be all you need if your car’s not worth much and you can live without it. It’s the cheapest option.
  • Comprehensive insurance can save you money if you can’t afford to pay for repairs (to your or someone else’s car) or live without your car.
  • Third party property, fire and theft insurance might suit you if you park on the street. It will save you money if your car gets stolen.
  • Check if a no claim bonus will really save you money.
  • Check the exclusions in your policy to see what you’re not covered for. For example, you might not be covered for rust or vandalism. This could be a problem if you park on the street.
  • Ask insurers if they offer any discounts. For example, if you bundle other types of insurance with them, or install an alarm.
  • Check if the insurer always charges an excess, even if an accident isn’t your fault.
  • Weigh up the difference between having a high premium and low excess, versus the opposite. You may be able to save on your premium by increasing your excess.

Compare car insurance policies

Get quotes from more than one insurance company to find the best value for money, and a policy that suits your needs.

Comparison websites can be utilitarian, but they are businesses and may make money through promoted links. They may not cover all your options. See what to keep in mind when using comparison websites. Compare these features :

  • a lower premium for the same type of cover
  • an option to lower your premium by adjusting your excess or paying no excess
  • an option to pay your premium in monthly instalments at no extra cost
  • any events that aren’t covered, for example:
    • mechanical failure, depreciation, rust, or wear and tear
    • intentional damage (for example, vandalism)
    • damage caused by an unlicensed, drunk, or drug-affected driver
    • storm damage
No claim bonus
  • a choice to pay a lower premium for not making a claim for a period of time
  • check the policy to see if things you leave in the car are also covered if they are stolen
Roadside assistance
  • free roadside assistance if you break down
After-accident care
  • free towing, on-the-spot repairs, taxi fare, accommodation and car hire

Renewing you car insurance

Get quotes from a few other insurers to check you ‘re getting the best consider. You may end up paying more by staying with your current insurance company .
Man standing looking serious.
Nathan ‘s miss of cable car policy gets him into debt

Nathan decided not to get any policy because his car is very old .
A few months by and by, he hit a brand-new sports car, which needed $ 20,000 worth of repairs .
Because he ‘s not insured for price to other cars, Nathan has to take out a personal loan for $ 20,000 and work extra hours to pay off the debt over five years .

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