subject: Save On Car Insurance Basics, Enjoy The Extras [print this page] For most of us mere mortals, the monthly budget is a bit of a juggling act. You need to keep an eye on your groceries, only put $10 petrol in the car some days, put off buying birthday presents for a little while, and always, ALWAYS look for a cheaper option! What this usually means in the context of both home/contents insurance and car insurance, is that you end up sacrificing some of the extra cover items so that your entire budget can look a bit more balanced, and the number in the little black square at the top of the page isn't quite so scary. What then happens, unfortunately, is that an event which could have been covered for an extra $20 in your car insurance policy ends up being a several hundred dollar repair bill. Today we are looking at how you can enjoy those extras on your car insurance, without putting yet another juggling ball into the rotation that is your monthly budget!
Types of Car Insurance
The three basic types of car insurance are fairly standard across the Australian industry! You can get:
Third party property damage car insurance, which covers you for the costs incurred in repairing damage caused by you to someone else's car or property
Third party fire and theft car insurance, which coves the above as well as theft of your car, or from your car, and damage to your car in a fire.
Comprehensive car insurance, which covers you for repairs to your own car even when an accident is deemed to be your fault.
The Basics - What All Policies Cover
So, if you happen to run into the back of a car with a $5 million painting in the boot, most car insurance policies will cover you. You may also get a few administrative benefits with all insurance policies, not just the more expensive ones. These might include:
Choice of annual, monthly or quarterly payments
Guaranteed quality of repairs
Paperless claims systems
Choice of excess types, or a standard excess for all drivers on the same policy (which one will depend on your exact surer)
Cutting Down the Cost of the Basics
Some car insurance companies will ask questions that differentiate your car use (and therefore, the risk that you'll have to make a claim on your policy), from the general population. However, when it comes to many factors that might reduce your premium (such as, the number of trips you generally make per week, whether you work part time or full time, etc), the risk from heavy users is shared across the entire portfolio of drivers. Look for an insurer that asks you plenty of questions because then you know they aren't making assumptions about your use, and are calculating your car insurance premium based on your individual circumstances.
The Extras - Pay Extra, for Extra Peace of Mind
Once you've successfully cut down the cost of your basics, you might be then able to move up an insurance level! You'll be able to comfortably work car insurance into your monthly budget, even with extras like:
Fire and theft damage
The cost of overnight accommodation in case your car leaves you stuck somewhere
Towing costs
The complete replacement of a new car
Reduced windscreen excess
Storm and flood damage
The cost of a hire car if you need it
by: Hugo Shreuder
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