Car insurance is of various types.There are also many insurance providers. If you want to opt for insurance for your car, you may be confused with the various types and so, you need to learn a little more about them, and also how you can be benefitted with each of them. Here are some tips.
Types of Car Insurance
Comprehensive Car Insurance:This covers the expense of your own car’s and property’s repair or replacement regardless of whether it’s your fault or not. This insurance also may cover emergency repair, damage due to other drivers and transportation costs.Take a look at the best quality QBE comprehensive car insurance to find its many advantages.
Third Party Fire and Theft: This covers the damage or loss to your car if it catches fire or is stolen besides your liability for damage resulted from your car to property of other people.
Third Party Property: This covers the damage caused by you to others’ property or vehicle. It doesn’t provide cover for your own car’s damage. The expense covered typically includes legal expense, claims service and limited damage caused by uninsured drivers.
CTP or Compulsory Third Party Insurance: This is also known as ‘green slip’ insurance. It is compulsory for all registered drivers in Australia. It covers you if you are legally liable to another party for personal injury in case of a car accident. It may include other drivers, travellers, pedestrians and cyclists. There is a different CTP process for each state and so, you will have to check the details with your State Government.
More Options: Some insurance providers provide some more coverage options with additional benefits and features, like protected No-claim Bonus, new car replacement and preference of repair.
If you want maximum benefits of your car insurance policy, take a careful look at each policy to weigh the benefits and choose the most suitable to you.
Market Value and Agreed Value
You will come across these two terms at most insurers if your vehicle is written off and you may wonder what they are.
Agreed value represents the value of the vehicle as agreed by you as well as the insurer and remains the same till the renewal date of the policy, whereas market value is the market value of the vehicle at the time of claim, considering the vehicle’s condition depending upon its age, model and make.
Excess
The amount you should pay in case of a claim is called an excess. For example, if your claim is of $1,200 and excess is $500, you need to pay the first $500 and your insurance provider will pay the rest $700. In case of a more serious mishap, wherein your car is written off, typically the excess will be subtracted from the final payment of claim.
Excess is of three types:
- Basic: Basic is the minimum amount you should pay in case of a claim. This amount is given on your Insurance Certificate.
- Voluntary: Voluntary is an additional figure, above your fixed amount of excess, that you consent to pay in case of a claim.
- Age (Inexperienced Driver): Age or Inexperienced Driver Excess applies normally when drivers are below 25 years of age or inexperienced. This includes both – nominated and principal driver.
While taking into account your excess, you should consider that:
- Increasing your excess may be beneficial to save money on your premium. However, first consider the car and what might happen in case of a claim. In case of an old devalued car, increasing excess may not be beneficial because you won’t prefer paying more than your car’s worth.
- In case of an accident, think upon the difference between your basic excess and claim amount. Consider the influence of a claim on your entitlement for No-Claim Bonus and on future premiums
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