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


    Insurance Claim - Medical Insights And Expenses

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

    Auto Insurance Rates

    Auto insurance rates will vary depending on the insurance agency,... Read More

    Homeowners Insurance Coverage

    When deciding on the appropriate amount of homeowner's insurance coverage... Read More

    Life Settlements, More than a Cash Surrender Payout

    With a life insurance settlement, seniors now have the ability... Read More

    California Catering Truck Insurance

    Catering truck insuranceNot many agents/brokers write catering truck insurance as... Read More

    Can I Really Get Life Insurance, No Exam Required?

    Changing the way that life insurance is bought and sold... Read More

    Individual Health Insurance Plans - How To Find The Best Provider Online

    Whether you are self-employed or a small business owner, finding... Read More

    Guide to Life Insurance Terms

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

    Medical Insurance Overseas

    Thousands of people have work related commitments and in order... Read More

    An Intro To Life Insurance

    There are many options available for life insurance, and for... Read More

    Everybody Wants The Best Term Life Insurance Quote

    The information you need about the best term life insurance... Read More

    Sisters Are Insuring Themselves: Finance is the New Feminism

    According to a study by LifeSearch, the number of women... Read More

    Terrorism Insurance - What it Costs Small Business

    The Terrorism Insurance Act of Nov. 26, 2002. This helps... Read More

    Everyone Wants The Cheapest Automobile Insurance Quote

    When you are looking for an automobile insurance quote, the... Read More

    The Surety Bond Domino Effect

    I have written many articles about the hard surety bond... Read More

    The Best Rates on Life Insurance

    Finding the best rates on life insurance is not difficult... Read More

    Do Discount Fees for Medical Service Programs Really Work?

    Having a health insurance policy provides a great sense of... Read More

    Insurance Credit Scoring: An Ethical Issue

    The issue at hand is the use of a consumer's... Read More

    Health Insurance for the Beginner

    When it comes to your family, selecting the right health... Read More

    The Life Insurance Policy and What You Need to Know Before You Buy

    Are you looking to buy a life insurance policy? Well,... Read More

    Insure Your House

    When we talk about insurance the thing you have to... Read More

    Health Insurance Plans - Benefits to Different Plans & Providers

    Health insurance plans vary in their coverage and prices. The... Read More

    Affordable Health Insurance - Health Insurance For The Self Employed

    One of the things that is important to consider when... Read More

    How Much Car Insurance Should You Buy?

    Car insurance is one of the most dreaded chunks in... 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

    How to Match the Right Insurance Policy to the 4 Stages of Life

    As we go through life our needs change. A Young... Read More

    Buy Life Insurance Online and Save

    There are many ways to research and buy a life... Read More

    Types of Homeowner Insurance

    There are 6 different types of homeowners insurance in general... Read More

    Guide to Car Insurance

    Here is a useful guide to car insurance. Buying car... Read More

    Why Dont Women Have Life Insurance?

    Traditionally, life insurance companies solicited men as the main breadwinners... Read More

    New Jersey Car Insurance - What Do You Need To Know About It?

    When purchasing New Jersey car insurance there are many decisions... Read More

    Insurance Glossary of Terms

    Assured - Those insured under the terms of an insurance... Read More

    Do Insurance Premiums Increase Every Year?

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