Australia is a beautiful place to explore any time of the year. However, a trip over the winter and spring months may be a better option. It's often more comfortable than sweating it out with the kids over the summer at a campsite with no air-con! In fact, new research by comparison service iSelect found that more than half of Aussies (52 per cent) say they may plan (or are planning) a driving trip within Australia over winter. * If you’re one of them (or you’ve pencilled your trip in for spring), it’s time to check your car insurance.
Unfortunately, the iSelect study also revealed some concerning information. Among the Aussies surveyed who plan to take a trip over the winter months in their own car, only 33 per cent said they’d review their car insurance policy. This means many may not be adequately covered if any damage occurs to their vehicle.. That’s too many Aussies taking a risk, which could catch them out if they need to make a claim! Read on as I break down the importance of car insurance and what to look out for.
The Basics
Compulsory third-party insurance is compulsory. Also referred to as CTP or green slip insurance, this is a requirement and is typically included in your car registration costs (unless you live in New South Wales, where you must buy it separately). CTP helps cover the cost of compensation claims if you injure someone in a car accident.
Comprehensive insurance can cover you for damage to your car (and others), even if you’re at fault. It’s typically the more costly option, but this type of policy could end up saving you money, especially if you do get into a prang while on your road trip. It can help pay for repairs to your car or someone else’s.
Could you handle paying for repairs if you accidentally ran into someone else's pride and joy? It's about weighing up what you can handle financially and what you really need to feel secure on the road. **
Agreed or Market Value?
When you’re a mum, peace of mind can be hard to come by. If you’re looking for reassurance about your vehicle, holding a comprehensive policy could be worth it. There is a lot to consider with this kind of policy. Add-ons, excess, and exclusions are just a few factors. You should also know how your car will be valued if you need to make a claim. Adrian Bennett, iSelect General Manager – General Insurance, Life & Loans, explained that insuring your car for an ‘agreed value’ means you agree with your insurer on what value it’ll be covered for if it’s totally written off.
“On the other hand, insuring it for ‘market value’ means the payout you’ll get from your insurer will be an
estimation of what your car was worth at the time,” he said.
“This can be based on many factors, including condition, age, mileage, and the average price if you were to replace it.”
It’s a good idea to speak with your insurer to understand if the market value would be a more suitable level of cover rather than the agreed value option. In some cases, market-value car insurance can be a cheaper option. However, the valuation of the vehicle is uncertain as it will only be assessed by the insurer at the time of a claim. It’s important to check the Product Disclosure Statement before you decide on any policy. **
When to Check
It’s a great idea to check your policy well before you’re due to hit the road, but if you’re not planning a trip soon, a general rule of thumb would be to review your policy when you get your renewal notice (rather than simply auto-renewing). Make sure your policy is still offering good value and a suitable level of cover. Policies can change over time, so it’s always worth taking a few minutes to compare options.
Between packing for the kids, curating a playlist, and bracing yourself for the chorus of “Are we there yet?”, finding time to review your car insurance may seem impossible. The good news is that it doesn't have to be. With the help of iSelect’s comparison experts, reviewing your car insurance can be simple. They can compare your current policy against a range of others. This assistance makes finding suitable cover much easier.
* Source: iSelect commissioned i-Link Research to conduct a national online survey between 8 to 16 May, 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+
** Source: Choosing car insurance - Moneysmart.gov.au
Disclaimer
iSelect does not compare all car insurers or policies in the market. The availability of policies may change from time to time. Not all policies available from iSelect’s providers are compared by iSelect. Due to commercial arrangements, area or availability, not all policies compared by iSelect will be available to all customers. Some policies are available only from iSelect’s call centre or website. Some of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers. iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115.
Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you. Take into account your personal situation before acting on iSelect’s advice. This is especially important before purchasing any policy. You should consider iSelect’s Financial Services Guide. It provides information about our services and your client rights. iSelect receives a commission for each policy sold, which is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.
