If you have compulsory third party (CTP) and comprehensive car insurance, you may think you’re completely covered. But not all insurance is the same — and even comprehensive insurance doesn’t cover everything. Here are five reasons to take a fresh look at your car insurance and reconsider whether you’re getting the best deal.
Most of us rely heavily on our cars. In fact, 90% of Australians use their cars every day.* So being without a car is an inconvenience most of us want to avoid at all costs. That’s why insurance is so important.
But even though comprehensive insurance is essential if you’re ever in an accident, it isn’t always enough. And there can be big differences between policies and insurers. So if any of these situations sound familiar to you, it might be time to rethink your car insurance.
My car insurance doesn’t allow me to choose my own repairer
Some insurers give you a limited list of repairers to choose from in the case of an accident. That’s fine if their nominated repairers do good work — but they could have been chosen for economy as much as for quality. And quality is especially important if you’ve got a high-quality car and you want to be sure the mechanic will use genuine parts for your vehicle model. So if your car insurance doesn’t allow you to choose your own repairer, it could be worth switching to an insurer that gives you freedom of choice, along with a genuine parts guarantee.
I’m looking to include my insurance premiums with my car repayments
For many of us, running a car and keeping it insured are necessary parts of life. But car insurance premiums separately can stretch your budget, especially if your insurer offers only a few limited payment options.
So if you’re taking out finance to buy a new car, you might want to ask if your insurance premiums can be included in your repayments. That way you can spread your insurance premiums over the year, making quality cover more affordable.
I don’t want to pay my car insurance annually
Having to come up with your insurance payment in one lump sum can be stressful — especially if your insurance renewal falls due at an expensive time of year like Christmas or school holidays. So it could be worth finding an insurer who will let you pay your premiums monthly (and who won’t charge you extra for the privilege).
My insurance doesn’t cover my car loan
Losing your job or becoming seriously ill or injured are probably things you don’t want to think about. But if you found yourself in one of these situations, it could be hard or even impossible for you to meetyour car loan repayments. That’s why loan protection insurance — which covers your repayments if you’re unable to earn a living — might be a smart investment.
If my car is written off, I won’t be able to afford another one
It’s bad enough if your car gets written off in an accident. But it’s even worse is if you owe more on your car finance than your insurance payout provides. If that happens, you could be left seriously out of pocket.
The good news is that you can protect yourself. Insurance options like asset equity insurance help you make sure your loan repayments are totally covered if your vehicle is damaged beyond repair. You can even ensure that you’ll always have the price of a new vehicle, with purchase price insurance. Think of it as life insurance for your car. Like life insurance, it gives you the peace of mind of knowing you’re protected if something goes wrong.
Please note that this information is general only, you should not rely on it, and you should consult your accountant/financial advisor for specific advice before pursuing any course of action.
* Source: Australian Automobile Association
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