Buying a new car is an investment in quality, so it makes sense to protect your investment with quality car insurance. That means looking beyond compulsory third party and comprehensive cover, with a range of other insurance options now available to protect both your new car and your own financial security.
Protection for your car
Each year there are more than 600,000 reported car crashes in Australia — more than a crash a minute.* So it makes sense to give your new car every possible protection.
While your compulsory third party (CTP) insurance is an essential starting point, it only goes so far. CTP covers you against liability if your car is at fault in an accident that injures yourself or other road users. But CTP does not cover property damage, and is no help at all if your own car is damaged or, even worse, written off completely.
That’s where comprehensive car insurance comes in. Comprehensive insurance helps take care of damage to your car when you’re at fault or the other driver can’t be identified. It can also cover extra costs like roadside assistance or towing if your car breaks down — even emergency accommodation if you’re stranded far from home. Many insurers also offer cover that guarantees they will use only genuine parts specifically designed for your model if repairs are needed. That’s an important feature if you’ve invested in a high quality vehicle.
And comprehensive cover isn’t the only car insurance option worth considering. Many drivers don’t realise that insurance can do more than simply protect your car. It can protect you, your family and your financial security as well.
Protection for you if something happens to your car
If your car is written off in an accident, not only do you have to deal with the inconvenience of being without a vehicle, but you could also be left carrying a significant financial burden. Especially if there’s a shortfall between your insurance payout and the balance you owe on your car finance.
That’s where asset equity insurance can help. Asset equity insurance makes sure you’re not left out of pocket if your vehicle is written off or stolen and covers the extra amount needed on top of your insurance payout to pay the balance of your car loan.
Another option is purchase price insurance, which gives you an even higher level of protection. Purchase price insurance bridges the gap between your insurance payout and the price you paid for the car — so even if your car is written off, you’ll have the funds you need to replace it. It’s a little bit like life insurance for your car. And like life insurance, it gives you the security of knowing you’re protected if something goes wrong.
Protection for your family if something happens to you
Paying off a new car can be easy enough when you’re earning a regular income. But it becomes a lot less straightforward when illness or injury stops you from working. So it’s worth asking: if you lost your job, became seriously ill or injured, or even died, how would you and your family manage the car repayments, on top of all your other living expenses?
Loan protection cover helps make sure you can always keep up with your car payments, even if the worst happens. It’s one less thing to worry about at a difficult time.
And loan protection cover can be surprisingly affordable. You may even be able to add your insurance premiums to your car loan or lease as part of your finance arrangement, so you can pay them off gradually as part of your normal repayments.
Find the option that best suits you
There are a lot of options available to you, but it really depends on your situation and your requirements. It’s best that you talk to an expert, who can help you identify the right cover for you.
Remember, your insurance cover is essential protection for your investment in Volkswagen quality — so don’t leave it to chance. By visiting your local Volkswagen dealer and speaking to a Business Manager, you’ll have the peace of mind of knowing your new car is fully protected from the moment you drive it away.
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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