Our cars are more than the vehicle that get us from A to B. They carry our surfboards when we want to hit the coast with mates for the weekend, they hold our equipment when we go camping with our family and they have the endurance to drive for many kilometres when we head interstate to support our football team.
We all use our cars for different purposes and passions, so it’s important to consider all the factors involved in insuring them so you can choose car insurance that’s right for you. We’ve put some questions to consider to get your research started.
Level of cover
When choosing your car insurance policy, you often have the option to select from three different types of insurance covers. The lowest cover is Third Party Property Damage Car Insurance. With this option, you are covered for your legal liability for damage caused to another vehicle or property.
The next level is Third Party Fire and Theft Car Insurance where you’re covered for the damage caused to someone else’s vehicle or property, plus if your car is damaged by fire or stolen. Finally, the highest level of cover available is Comprehensive Car Insurance. With this level of cover, on top of third-party insurance you’re also covered for specific events such as collision or accidental damage.
How often do you drive?
When choosing a car insurance policy that’s right for you, have a think about how often and long you typically drive for. If your passions are close to home and in turn the distance you regularly drive is small, options may be available to reduce the cost of your premium if you are over 25 years old.
Where do you park?
It’s also worth considering where you park during the day and at night. If your car is in a secure car park, it may be less likely to be damaged or stolen compared to a car that is parked on the street. This factor may help you to decide whether you would like to be covered for Third Party Fire and Theft Car Insurance or Comprehensive Car Insurance.
Have you modified your car?
If you’ve added roof racks to carry your mountain bikes, upgraded your sound system to get you through your weekend road trips or tinted your windows, make sure to include any modifications to your car when you apply for a quote to ensure they are covered as part of your car insurance policy.
Who are the drivers?
When choosing car insurance, consider who will be the main drivers. You may have options available where you could enjoy a lower premium by excluding young divers or specifically nominating who will drive your vehicle. Some insurers may also provide a lower premium when your car is driven less often throughout the year and in turn less likely to be involved in a car accident.
Do you have a preferred repairer?
Some insurance providers come with some handy extras including allowing you to choose a repairer of your choice, subject to the insurer's approval. If you’ve been using the same repairer all your car driving life, you may want to find an insurance company who may allow you to stick with them.
Can you live without your car?
If your work or passion is dependent on your car, it may be worth considering a policy that covers your hire car costs following any incident where you’re covered under your policy. This means while you wait for the repair or replacement of your car, you’ll have a back up option in the meantime to get you to and from work, and wherever your passions take you.
Subject to the product issuer’s underwriting rules and acceptance guidelines. Terms, conditions and exclusions apply and are available upon application. The information above is general advice only and does not take into consideration your personal objectives, financial situation or needs (“your personal circumstances”). Please consider the relevant Product Disclosure Statement (PDS), other Disclosure Documents and your personal circumstances before making any decision to purchase the products. Contact us on 13 11 82 with any questions, or visit your nearest branch to talk to a consultant. General insurance (including Travel Insurance) is issued by Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as CGU Insurance. All our insurance issuers pay commission at rates which range from 0% - 40% of the base premium. The commission rate varies depending on the type of insurance.