Car insurance features

Once you've defeated the 'type of car insurance' question, it's time to move on to the battle of the auto insurance features. While you'll need to check on specific exclusions or optional extras (such as windscreens), most comprehensive cover provides for:

• accidents
• theft
• natural events (ie flood or hail)
• malicious damage & vandalism

Then there's a caryardful of features your auto insurance may include such as:

• repairs options
• ability to choose repairer
• lifetime guarantee on repairs
• emergency repairs available

Optional extras

• rental car if damaged or stolen
• roadside assistance available
• carbon offset: included in the premium
• trailer cover available

Usability

• instant online access: purchase, amend or renew your policy online
• multiple drivers and vehicles on one easily managed policy

Car insurance excess

Auto insurance isn't all new cars and large payouts. Insurers keep us honest (and themselves rich) by levying an 'excess', which means you have to pay the first few hundred dollars on any repair or replacement costs - even if you have a no-fault accident. They'll then cover any surplus costs.

• excess typically varies between $400 and $800
• the size of your excess impacts the cost of your policy:
• • higher excess reduces your payments (if you back your accident-free driving ability)
  • lower excess increases your payments
  • you can also remove excess on some policies, for a higher premium
• excess can also vary depending on the age of the driver in an accident, and whether he or she is nominated

No claim bonus

Your no claim bonus or NCB is a rebate on the total cost of your car insurance policy, and can bring significant savings in the price of your cover. While it varies from insurer to insurer, most will award you a rating based on your driving history, with 'Rating 1' being the best low cost insurance.

Rating 1 is equivalent to approximately 5 years without an accident, and corresponds to a no claim bonus of up to 60%.

Some NCB facts:

• with many insurers, your Rating or NCB is preserved if you're involved in a no-fault accident, and no-fault accidents may not be taken into account when determining your Rating status
• with some insurers, your Rating can be preserved for life, even in the event of an at-fault accident (this is typically a reward offer extended after several years' accident-free driving with the one insurer)
• the no claim bonus is a powerful means for insurance companies to avoid payouts, as the surplus cost of repairs (after you've paid the excess) might not be worth losing your ongoing NCB

Agreed or market value car insurance

If your car is seriously damaged or written off, it may be cheaper for the insurance company to replace it. In this event, the insurer will either pay the market value of the car, or an agreed value.

• cars under 2 years old and/or under a certain number of kms are typically replaced with new vehicles
• the agreed value of your car is usually nominated by the insurer. Some auto coverage allows you to nominate your own value, such as the cost of a new car but these options will cost more than a market value policy