We have all heard the age old adage warning us to read before we sign. But it is alarming to reflect on how few of us actually put this into practice when it comes to our Car Insurance policy. Aside from the certificate of Insurance it is crucial to understand what is in the Product Disclosure Statement (PDS). The PDS explains the coverage of your insurance policy as well as the terms, conditions and exclusions that apply. When you need to make a claim it becomes very important that you understand exactly what you are entitled to and the things that may stop your claim from being approved.
What you are covered for
Most comprehensive insurance policies cover you for loss or damage as a result of an accident, a storm, flood, fire and theft. Comprehensive car insurance would also cover you for damage you make to third party property. However policies differ on the amount you are covered for in relation to personal belongings, keys, after-accident care, towing, storage, accommodation and car hire.
Features and benefits to look out for
Car hire Option: Most comprehensive policies offer limited car hire if your car is stolen however not if your car was damaged in other ways outlined in the policy. This added option gives you the peace of mind that your business and way of life will not be interrupted by the inconveniences of not having a car for whatever reason*.
Optional Windscreen cover: taking out this cover often means that you will be able to waive the excess normally applicable to claims for windscreen damage*.
No Claims discount Protection: This option protects the No claims rating you have worked hard to build up. It means that your No-claims rating is not affected by the claims that you do eventually make in that insurance period*.
-*Note that the information provided are only generalisations. Your insurer may offer more or less options which are subject to terms and conditions not outlined here and the benefits of each option may actually be more or less than what has been described. The price of options is normally added to your premium so if you are after cost-savings these are the things you may consider foregoing.
Agreed or market value
The value of the car as stated in the certificate of insurance will often be the maximum amount your insurer will payout on a claim for damage or loss. The value is measured either by the car’s market value or the value agreed upon by you and your insurer at the start of your policy. The market value is determined at the time the loss or damage was incurred and reflects the amount your car would fetch in the market given its mileage, model, type, and age.
Modifications
If you make modifications to your car and tell your insurer about it, the cost of your insurance may rise. However if you make modifications to your car and fail to disclose this to your insurer then they may not have to pay on a claim to repair those modifications and if the car is stolen your policy may be completely invalidated.
Exclusion clauses
There are many exclusion clauses that may apply to specific claims as well as to the overall policy and these are all outlined in your PDS. However if you do not have an insurance policy yet, you should be able to locate the PDS of a prospective insurance policy online via the provider's website.
Review online quote estimates from participating providers (though not all may be listed for every quote):
Budget Direct, Virgin Money, Ozicare, 1stforWomen, ibuyeco, Cashback, Retirease and AI Insurance.
Disclaimer
Nothing in this car insurance comparison service should be taken as constituting personal advice. It has been prepared without taking account of your objectives, financial situation or needs. Before you buy a car insurance policy you should consider whether it is right for you. Whilst policy features are listed here, it is only a summary and does not describe all policy details. Be sure to read the insurer's Financial Services Guide and Product Disclosure Statement before deciding to buy. Quotes are estimates of premiums of our participating providers. As with all insurance premiums, these are subject to underwriting and may change. See InfoChoice's Financial Service Guide. InfoChoice Ltd ABN 93 061 105 735 AFSL No. 349445