Top 10 Car Insurance Traps
1. Cover - Without it you have not only paid for nothing, but you’ve denied yourself the opportunity to be insured for the collision you have just experienced. Don’t ever pay good money for bad insurance cover.
2. Price - Yes, Cash is King, but consider also flexibility options such as paying by the month, nominated-driver-only cover and increasing your excess to reduce the premium.
3. Communication - Your insurer needs to be contactable by phone (preferably 24/7), online so you can compare the policy cover and have a physical office reasonably close to you, just in case.
4. One-stop assessment - Assessing centres for car insurance claims are now quite common, but alternatives such as one quote only from preferred / nominated panel shops are often just as speedy.
5. Repairs guarantee - As the market competition heats up, ask if the insurer offers a lifetime guarantees for workmanship on collision damage. Check the fine print though, and don’t forget to ask for new parts if it’s a new car.
6. Agreed or market value choice - There are some interesting hybrids around the insurance market which merge these terms, so be sure that your "agreed value" is not actually market value, up to that agreed amount.
7. Lifetime Rating 1 - the days of Ratings 1 to 6 seem to be ever diminishing, to the ultimate point where all policies will be underwritten as "Rating 1", but again, as there are several variations on the lifetime rating theme, it’s important to check the details.
8. Hire Car - complimentary use of a hire car has been around a long time for cars stolen but unrecovered, (where the claim has been admitted). The offering of hire cars has been widened quite significantly however, so don’t forget to ask if one is available.
9. Low Risks - insurers are free to adopt certain "Underwriting Guidelines" to basically target any segment they wish, so if you are considered "low risk" - use it to your advantage and shop around!
10. High Risks - some drivers and / or cars will be "hard to place risks" so far as insurance underwriters are concerned, but as with "low risks", using resources such as www.ratecity.com.au and www.insurancehub.com.au, you will almost certainly find an insurer willing to accept the business on right terms for you.
How do I compare car insurance policies?
RateCity is the best website to shop around on for car insurance and most other financial products. At RateCity, you can use expert comparative data from CANSTAR CANNEX, Australia’s leading financial research and ratings firm. CANSTAR CANNEX has independently analysed and evaluated products from 23 car insurance providers to award five stars to only the very best. The CANSTAR CANNEX star ratings go much further than just looking at premiums. They also look at driver profiles, state of residency and other factors which may affect premium price so you can be confident you are getting the best product.
As well as comparing car insurance policies at RateCity, you can also get instant quotes from leading Australian car insurance brands.
Article written by Ross Lee, principal of Lee Lawyers, specializing in insurance law and injury claims. Visit www.insurancehub.com.au