7 Steps to Finding the Right Car Insurance for You
Getting car insurance isn’t an option in Australia — it’s a requirement. But with so many insurers and policies out there, how can you make sure that the car insurance you’re signing up for is right for you?
The answer is: Do your research.
To help you get started, here are 7 steps to finding the right car insurance for you.
Step 1: Learn About the Different Types of Insurance Available
In order to decide which type of insurance is best for you, it’s important to first understand the different types of car insurance available in Australia.
These include Comprehensive, Third Party Property Damage, and Third Party Fire & and Theft coverages.
Out of these, comprehensive insurance is the broadest form of coverage available, insuring you against damages caused to your vehicle and other people’s property.
For example, a comprehensive plan from ROLLiN’ Insurance gets you coverage for accidental damages, as well as things like windscreen repair, theft, fire and personal items inside the car. Furthermore, if your car needs repairs, you also get reimbursed for transport costs that you may incur while your car is getting repaired.
Third Party Property Damage provides cover for damage you’ve caused to someone else’s property or vehicle, but not your own. It’s also often referred to as ‘third party only’ insurance.
Finally, Third Party Fire & Theft provides cover for damage specifically caused by theft or fire.
Step 2: Check Out What’s Required in Your State
In each state, it’s compulsory to have Compulsory Third-Party Insurance (CTP).
Depending on your state, you may also need optional types of car insurance, such as fire and theft cover, third-party property damage cover, and driver cover.
So check with your local authority to determine which insurance types are mandatory or optional in your area.
Step 3: Consider What Type of Coverage You Need
When considering car insurance, it’s not just about what type of coverage is required in your state. You’ll also need to consider what type of coverage you actually need based on your driving habits.
Factors such as how often you drive, the type of roads you usually take, and how many years of experience you have behind the wheel will help determine the kind of car insurance that’s best for you.
For example, if you’re a frequent driver who regularly drives on highways and other high-traffic areas, then comprehensive insurance or a pay-as-you-drive policy might be a good option.
On the other hand, if you drive an older car or don’t drive often, third-party cover may be sufficient.
Also, sometimes you need to protect your car during long distance moves and trips. Examples include when you’re relocating to another state or going on a long road trip. In these cases, you can get temporary coverage for your car and don’t have to sign up for a full year of car insurance.
Step 4: Compare the Premiums
Once you know what kind of coverage you need, it’s time to shop around and compare different car insurance premiums. Start by looking at the major insurers and comparing their prices for the level of cover that you need.
When comparing car insurance policies, make sure to check for any additional benefits and discounts being offered. Insurers may offer discounts for safe drivers, no-claims bonuses, multi-policy discounts, etc.
ROLLiN’ Insurance, for example, offers a unique benefit not frequently seen with other Australian insurers. They do not charge a higher premium for drivers aged 25 and under, which makes them an attractive choice for young people looking to insure their vehicles.
And hey! If you think your car insurance premiums are too high, here are some ways you can try to lower them.
Step 5: Consider Your Driving Record
Your driving record is an important factor when it comes to the cost of your car insurance. A good driving history can help you get lower premiums and vice versa.
If the tickets, accidents, or claims you’ve had in the past have been minor and don’t pose a risk to your insurer, they might still be willing to offer you a reasonable premium.
However, if your driving record is poor and you have multiple convictions or claims, it might be best to look for an insurer who specialises in high-risk drivers.
Step 6: Look for Reviews and Testimonials
Reading reviews and testimonials from other customers is a great way to get insight into the experiences they’ve had with an insurance company.
You can read reviews and testimonials on the insurer’s website, or you can check out independent review websites like ProductReview. These sites have user ratings and comments that can help you make a more informed decision.
Step 7: Read the PDS Carefully
Once you’ve narrowed down your options to a few insurers, read their Product Disclosure Statement (PDS) carefully. This document contains all of the important information about the cover that’s being offered, the policy limitations, and any exclusions.
A thorough reading of the PDS will help you understand:
- What is and isn’t covered by the policy.
- Whether there are any excesses or hidden costs.
- The time period for which the policy is valid.
- The claims process and how to make a claim.
- The insurer’s customer service record.
Doing this will help you compare policies more accurately and make sure you’re getting the best value for your money.
When it comes to finding the right car insurance, remember to compare premiums, read the PDS carefully, and check out reviews from other customers before making your decision.
With the right car insurance policy, you can protect yourself on the road and save money in the long run.
But before signing the line, double-check all of the details one final time to make sure you’re making the right decision. Good luck!
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