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
1.
Research, investigate
and take your time when looking for car insurance.
2.
Get something that
suits your needs not the insurance companies.
3.
Answer the question,
market value or agreed value cover?
4.
Make sure you
understand and know exactly what you are covered for.
5.
What is excluded from
the policy?
6.
What is the excess
when making a claim?
7.
Remember cheapest it
not always the best.
8.
Tell your insurer
about anything that happens to you that may affect your policy, for example
driving convictions. Don't take short cuts.
9.
Work out a payment
method that suits you.
10.
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.
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