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


    Avoiding The Potholes Of Car Insurance

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

    Are Accidents More Likely To Occur Closer To Home?

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

    Natures Fury - Time to Check Your Insurance

    The communities of Exmouth and Moora in Western Australia don't... Read More

    Do Insurance Premiums Increase Every Year?

    Many people ask, "If I am supposed to get a... Read More

    Medical Bills - Evaluating Your Personal Injury Insurance Claim

    The value of a personal injury claim has a direct... Read More

    Filing An Insurance Claim

    Everything seemed pretty simple when you purchased that insurance policy.... Read More

    The Life Insurance Plan Online

    Thank goodness the internet age has arrived helping us to... Read More

    Cheap Health Insurance - Health Insurance for The Self Employed

    If you're self employed, you may think of health insurance... Read More

    Finding Health Insurance for Self-Employed Individuals: A Guide For the Freelance Newbie

    With a rise in those looking to venture out on... Read More

    Filing Homeowners Insurance Claim Forms: What Steps to Take

    Filing a homeowners insurance claim can be done with ease... Read More

    Why Does Health Insurance Cost So Much?

    Why does health insurance cost so much? Year after year,... Read More

    Types of Life Insurance

    There are different types of life insurance policies available. Shop... Read More

    Guide to Life Insurance

    Here is a useful guide to life insurance. Simply put,... Read More

    New Concepts in Car Insurance - Pay as You Drive

    You can pay as you talk with a cell phone... Read More

    What Price For Your Health?

    How do you put a value good health? For many... Read More

    Insurance Claim - Medical Insights And Expenses

    There's nothing that has a greater impact on evaluating a... Read More

    Can I Get Affordable Dental Care?

    In the United States most companies offer their employees dental... Read More

    An Introduction to UK Home Insurance

    Unlike motor cover, home insurance is not a legal requirement... Read More

    Buildings Insurance and the Threat of Flood

    What is the impact of increased flooding risk in the... Read More

    Insurance for Car Wash Fundraisers

    Non-profit groups in this day and age need to watch... Read More

    Home Insurance Rates in Northern Ireland

    A recent survey took the most popular type of home... Read More

    5 Steps To Cheap Car Insurance Premiums

    Although car insurance is compulsory, it's not necessary to pay... Read More

    Guide to Life Insurance Terms

    Listed below is a useful guide to life insurance terms.... Read More

    10 Tips to Save on Healthcare Insurance

    Americans shopping for their own healthcare insurance can substantially cut... Read More

    Insurance For All Your Gadgets

    Personalisation, Digitalisation, Mobilisation, these 3 words represent your life today.... Read More

    Travel Insurance Might Be Just What You Need!

    Travel insurance is something that many people haven't considered. Sure,... Read More

    Travel Insurance Pre-Existing Conditions Coverage - How It Works

    What is a Pre-Existing Medical Condition?When a trip cancellation travel... Read More

    How Many Homeowner Insurance Quotes Do I Need To Save Money?

    Homeowner insurance quotes can vary in the amount they cost... Read More

    Health Insurance, What Does It Mean?

    Your health insurance policy is an agreement between you and... Read More

    An Intro To Auto Insurance

    Although premiums, policies and prices vary widely, the mandate does... Read More

    Which Car Should You Own To Keep Your Insurance Rates Most Affordable?

    Do you consider the cost of insurance before you buy... Read More

    Life Settlement Overview

    A "Life Settlement" is a lump sum settlement paid to... Read More

    Car Insurance Monitoring for Discounted Insurance Rates - Privacy Devouring Monster Eating Us One Bi

    For a price, would you let car insurer along for... Read More