Are you an Australian who drives a motor vehicle?
With 20.1 million registered motor vehicles in Australia as of the beginning of 2021 it is highly likely that your answer is “yes”. If you own a car then you likely already have at least a minimal understanding of the necessity of car insurance.
But do you really know how beneficial motor insurance is and how it can protect your wallet if you need to repair or replace your car due to damage or theft? We’ve compiled the following guide to help you understand these benefits.
What is Motor Insurance
Firstly, let’s start with the most simple facts: and take a broad look at what it is.
Motor insurance covers your vehicle against cases of accidental damage or theft. It also protects you from costs associated with repairing or replacing another person’s vehicle if you are involved in an accident where you are at fault.
Accidents can happen at any time and are usually completely unexpected, yet can leave us heartbroken and in debt. To prevent a little of this pain you can ensure your vehicle is insured and your wallet is protected.
With comprehensive insurance you can ensure any damages are repaired by repairers of your choosing or one from our books, either way you will receive a repair guarantee on all materials and workmanship during the authorised repairs.
With this cover you can also opt to include an excess free windscreen claim every year. So, you don’t have to deal with looking through old chips or scratches.
If your car is written off within three years and has less than 60,000 kilometres during an accident or natural disaster then your insurance company will help cover the replacement of the same make and model of your vehicle.
With this cover you only have to worry about paying your agreed upon excess amount, which in most situations is much less than the cost of all the required repairs.
If You’re at Fault
We know you’re probably a great driver so you may think you don’t have to worry about protecting yourself against the unlikely situation of you causing an accident. But, all it takes is one tiny distraction and you could end up in debt, trying to pay for someone else’s car as well as your own.
To avoid this situation, no matter how unlikely you may think it is, it’s important to protect yourself with third party insurance. Having third party property damage (TPPD) insurance will ensure that in the case that you are at fault for the damage or write off someone else’s car, the costs will be covered.
This however does not cover any damages incurred to your car during the accident. So, you would only rely on this cover alone if you have a low-value vehicle, and are mainly concerned about any costs incurred for the damage your car could do to someone else’s more valuable vehicle or other property.
To ensure you are completely protected and not left with a mountain of debt after an accident, it is beneficial to have comprehensive cover. A comprehensive insurance policy will also help you pay for any damage that your car sustains during an accident even if you are at fault.
Now onto a risk that has nothing to do with you and your driving abilities.
Hopefully, you will never have to experience this heartbreak of your car being stolen. However, with over 15,805 thefts in 2021 it’s an unfortunate risk that you need to protect yourself against.
With comprehensive motor insurance your insurance company will pay you an agreed price or the equivalent of your car’s market value so you can afford to replace your stolen vehicle.
If you opt for this cover you can also be granted a rental car for up to 14 days so that you are not left stranded while you are searching for a new car.
In the case that your keys are stolen but not the car or the car is recovered in working condition, your insurance policy covers the cost of rekeying and re-coding your car to ensure it is secure.
One tip we want to mention is that you can only reap the benefits of auto insurance if you follow the rules. While each policy is different and can be tailored to your needs, there are a few things that you need to remember.
There are a few reasons that you may not be covered after being involved in an accident, including if you or the person driving your car is unlicensed, under the influence of drugs or alcohol, and if your car is being used in a sport or time trial.
If you and everyone you let drive your car is responsible then you will be covered and have peace of mind that you will not be left out of pocket if your car is damaged or stolen.
To learn more about our motor insurance policies and how we can help you, you can visit our website or contact us to schedule a quote.
Motor Vehicle Census, Australia – https://www.abs.gov.au/statistics/industry/tourism-and-transport/motor-vehicle-census-australia/latest-release
Insurance Business Australia – https://www.insurancebusinessmag.com/au/news/breaking-news/australian-states-and-cities-with-the-most-motor-vehicle-thefts-413862.aspx#:~:text=21%20Jul%202022-,Australian%20states%20and%20cities%20with%20the%20most%20motor%20vehicle%20thefts,leading%20car%20insurers%20in%20Australia.