Insuring Your Car
Insuring your car may seem like a fairly basic task, but how do you know if you have the right cover and if you’re getting good value for money?
There are a growing number of companies in Australia who offer car insurance. Previously the industry was dominated by the big names such as NRMA and GIO, however there are many more options now becoming available.
So what do you need to consider when insuring you car? In this guide we will look at some of the important factors for any car owner to take into account.
Types of Insurance
There are two main types of insurance available for vehicles, being third party insurance and comprehensive insurance. At a basic level, third party insurance only covers other people’s property, whilst comprehensive insurance also covers you own car.
Some third party insurance policies also include cover for fire damage or theft of your car, but not any other form of damage to your car.
Comprehensive insurance is certainly the preferred option, however if you have a limited budget third party insurance is certainly better than nothing.
The car insurance companies in Australia generally fall into three main categories. These are the big retail insurers, the broker-only insurers and the online-only insurers.
The big retail insurers include household names such as NRMA, GIO and AAMI. These companies offer cover through a number of channels including their branch network, over the phone and via the internet. These are the most commonly used insurance companies in Australia.
Some insurers do not have their own retail networks, and instead provide their products via insurance brokers. A number of insurers in this category are now starting to offer insurance via their own call centres.
The fastest growing category of car insurers is the online-only companies. Some of these insurers are divisions of the big retail insurers, whilst others are new entrants from both Australia and overseas. These companies attempt to offer lower premiums due to their lower costs.
Features and Benefits
Although the main concept behind car insurance is much the same for all insurers, there are a range of different features and benefits offered by the different insurance companies. When choosing an insurance policy it is important to select one with the right features and benefits for your needs.
Claim Services & Support
The most important factor for any insurance company is that it pays its claims in a fair and efficient manner. Some insurers have better reputations than others when it comes to paying claims, so it is worth researching review websites before choosing an insurer.
For many people the most important consideration with their car insurance is simply the cost. Of course we all want the cheapest premium, however you need to ensure that the policy is still going to meet your needs and objectives.
As one of the largest insurance companies in Australia says, a quick saving on your car insurance may not save you car.
Choosing a Policy
When choosing a car insurance policy you need to take into account all of the relevant factors. The policy should be with an insurance company you are comfortable with, it should have all of the features and benefits you need, and it should offer a premium that offers good value for money.