Avoiding The Potholes Of Car Insurance

Car Insurance is an issue that we all of face in our lives. Do we insure our car or not?

For example, what type of policy should you get? What should you look out for when signing on the dotted line? Car insurance can be a minefield if you do not investigate and take time out to research and evaluate the many types of insurance on offer in today's market.

Some of the main questions you need to ask yourself include do you want car insurance in the first place or are you willing to let luck prevail? Do you want comprehensive cover? Do you want to be covered just for fire and theft or do you want third party property damage insurance?

There is a significant difference in each of these policies and they vary from company to company. Basically comprehensive cover is full cover of your car and the other person's car (or the traffic light you demolished).

Third Party Fire and theft insurance is the next step down and then you have third party cover. Third party protects you for damage to some else's car but not yours.

After working out what type of insurance you want, ask yourself do you want to insure the car at an agreed value or current market value of the car? This is very important to consider. If your car is a special model with lots of modifications, you might consider the agreed value option because it allows you to include added extras.

The majority of people go for the market value option but it is important to read the fine print. This option has a catch. The insurance company pays out the amount the car is worth at the time of the accident. Hence the amount could be different to the market value originally spelled out in the policy when you signed up because of depreciation.

Once you have worked out what type of cover you want you start getting down to the smaller, more tedious options.

Some of the main ones you need to consider include:
(i) How much is the excess?
(ii) Do you want to choose the repairer?
(iii) Do you want loan vehicles if your car is stolen?
(iv) Do you want the policy to cover the car for business use?
(v) What drivers are covered?
(vi) Is it repaired using only genuine spare parts?
(vii) Is there a limit on towing fees?
(viii) Does it cover damaged property and personal belongings inside the car?
(ix) Does it Cover taxi fares?

RAC's Assistant General Manager for Insurance Services, Sam Mola believes it is very important for people to research and investigate all options before taking out car insurance.

"People need to watch out and make sure they are signing up for cover that suits their needs. You need to review the benefits provided and then make an informed decision," he said.

"People need to make sure they are familiar with the cover provided by the policy and not just compare policies on price. They need to make sure the company can provide the appropriate claims service when a claim is made. For example the company should provide a high quality of repairs for a minimum amount of fuss. People need to consider the reputation of the organization. Cheaper does not always mean better."

The Australian Insurance Council's Group General Manager for Western Australia and the Northern Territory Daryl Cameron said in 85 per cent of cases policies are bought on price alone, which can be dangerous for people who do not read their policies extremely carefully. He also said if you are not honest with your potential insurer they may refuse to pay out if the time comes.

"It is vital that all known information regarding the vehicle or any intended driver is fully disclosed to the insurer when taking out a policy or when one is up for renewal. If anything changes that may effect your policy you must tell the insurer; It is extremely important, remember you have a duty of disclosure," Mr Cameron said.

"If you smash into the back of a Mercedes, and you forgot to tell your insurance company about your dangerous driving conviction, they may refuse to pay out despite the fact you are covered by them. So be careful otherwise you may have to foot the bill yourself," he warned.

So be careful, take your time and watch out for the traps that catch many unsuspecting motorists. It is important that you understand what you are getting into and ask as many questions as you can. Remember there is no harm in asking and it could save you a lot of money in the long run.

Here are 10 points to remember when considering car insurance

  • Research, investigate and take your time when looking for car insurance.

  • Get something that suits your needs not the insurance companies.

  • Answer the question, market value or agreed value cover?

  • Make sure you understand and know exactly what you are covered for.

  • What is excluded from the policy?

  • What is the excess when making a claim?

  • Remember cheapest it not always the best.

  • Tell your insurer about anything that happens to you that may affect your policy, for example driving convictions. Don't take short cuts.

  • Work out a payment method that suits you.

  • For an 'At Fault' claim can you protect your no claim bonus?

    • Thomas Murrell MBA CSP is an international business speaker, consultant and award-winning broadcaster. Media Motivators is his regular electronic magazine read by 7,000 professionals in 15 different countries.

    You can subscribe by visiting http://www.8mmedia.com. Thomas can be contacted directly at +6189388 6888 and is available to speak to your conference, seminar or event. Visit Tom's blog at http://www.8mmedia.blogspot.com.

    In The News:

    pen paper and inkwell


    cat break through


    Useful Tips on Reducing Insurance Costs

    Most people want lower insurance costs but are often too... Read More

    Sleep-At-Night Coverage With A Private Health Insurance ( Affordable Health Insurance )

    Health Insurance: a sense of dissatisfactionThe three C's, customization, consumerization... Read More

    General Knowledge - Critical Illness Insurance

    Critical illness can happen to anyone, and often does. If... Read More

    High Risk Auto Insurance - How to Lower Rates

    How is your driving record lately? Do you have a... Read More

    Why Dont Insurance Companies Reward Us for Being Healthy?

    Insurance is always a gamble, a bet actually.You are betting... Read More

    Life Insurance Whole Life or Term Life - Find Affordable Life Insurance

    Life insurance, whether you need term or whole life, can... Read More

    Discount Life Insurance Will Give You The Best Protection You Need

    There is always a chance that there is a better... Read More

    Taking The Mystery Out Of Long-Term Care Insurance

    Here's the good news: with improvements in medical technology and... Read More

    Online Insurance: The End of the High Street Broker?

    When I was a lad, some 25 years ago, the... Read More

    Insurance Adjusters How They Work And How They Think

    Here comes the insurance adjuster. Is he overly friendly? If... Read More

    Avoiding The Potholes Of Car Insurance

    Car Insurance is an issue that we all of face... Read More

    Private Medical Insurance- Finding The Right Policy for You

    Why Private Medical Insurance Is Becoming So PopularRecent research indicates... Read More

    Life Insurance Beneficiaries

    Naming a beneficiary for your life insurance policy can be... Read More

    Term Life Insurance Help

    Life insurance can be a very scary thing. If you... Read More

    Motor Vehicle Accident Insurance Claim Guide

    This is a FREE Insurance Claim GuideYour "Motor Vehicle" can... Read More

    Long-Term Care Insurance: Eldercare Solution

    When I suddenly had to become a fulltime caregiver to... Read More

    Underwriting Life Insurance For Diabetics and Diabetic Life Insurance Information

    Life Insurance Companies differ in their "underwriting philosophy" when it... Read More

    How Will an HSA Save Me Money?

    The Health Savings Account (HSA) is a tool to help... Read More

    Long Term Care Insurance How Much Should I Buy?

    Long-term care insurance policies have a variety of features and... Read More

    Alternate Risk Transfer (ART) - Insurance Strategies

    Risk ManagementAlternate Risk Transfer is a fancy way of saying... Read More

    Term Life Insurance - A Safeguard for Small Business Owners

    Term life insurance can offer protection for a small business... Read More

    10 Ways To Save On Car Insurance

    For most people car insurance is a the single largest... Read More

    Are Accidents More Likely To Occur Closer To Home?

    If you are going to be involved in an accident,... Read More

    How To Save Money On Your Homeowners Insurance?

    In order to save money on your homeowners insurance you... Read More

    Is Your Auto Insurance Company Rated?

    Several national rating institutions rate insurance companies. Do coverages, rates,... Read More

    What To Do When You Suffer An Injury On The Job?

    For over 30 years I have been representing injured workers... Read More

    Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!

    With Nursing home Cost's running $4,000 to $6,000 a month... Read More

    If You Rent A Home, Protect It By Buying Renters Insurance

    Renters insurance is often overlooked by people who are renting... Read More

    Talking to Your Parents About Insurance

    Who can you talk to about auto insurance? Insurance agents... Read More

    Health Savings Accounts

    Most people with health insurance, especially employer paid health insurance,... Read More

    Saving on Home Insurance: Tips for Cutting Costs

    Everyone is searching for a way of cutting costs, a... Read More

    Handling Your Motor Vehicle Accident With Your Own Insurance Company

    This "How To" article is crucial, up-to-date information concerning what... Read More

    Are You Sure That Heirloom Oriental Rug From Your Aunt Hilda Is Really Insured?

    Gone are the days of the cinder block and wood... Read More