Used car prices continue to rise: What to do about car insurance
There have been plenty of reports on the rising cost of used cars over the last year, and it’s looking like the trend may persist a little longer.
The most recent used car price index from research group Moody’s Analytics found the value of pre-loved vehicles had risen by 18% year-on-year to December 2021. The report forecasts growth continuing in 2022, albeit at a much slower rate of 3.6%, before the line graph tips downwards once more in 2023.
This price spike is, like many consumer pricing moves of late, attributed to supply chain issues caused by the pandemic.
Largely, it’s linked to the slow-down in the new car market caused by the shortage of semiconductor chips used in vehicle manufacturing. The Moody’s Analytics report also highlights increased demand for vehicles for hitting the holiday road post-lockdown as a potential force driving up car costs.
It’s predicted that this confluence of factors will slowly shift back to pre-pandemic levels over the next year or so. But for now, it leaves car owners and potential buyers in a market where well-worn vehicles are worth considerably more than you might expect.
Should I increase car insurance cover on my used car?
Whether you’ve just bought a car or are holding onto your trusty mechanical stead, you might be wondering where car insurance fits into this. It really depends on the type of insurance you hold and what your car is valued at right now.
For those with third party property insurance – which only covers costs for damages you might inflict on other people’s cars or property – it doesn’t mean a great deal. This is because your own wheels aren’t covered under this kind of policy, so what they’re valued at is a moot point.
It could have more of an impact for drivers who hold comprehensive car insurance. When you take out a comprehensive policy (the insurance level that can cover repair or replacement costs for your own car), the insurance company lays out the value they are covering your wheels for. This could be set at what they deem to be the ‘market value’ of the car (aka what it would sell for at that time), or an amount you choose and both parties agree to.
In either case, if the value of your car has increased since you took out or renewed your insurance, you could effectively be underinsured. This means the pay-out you might get to replace or repair the car via an insurance claim may not be sufficient in the current market. This could leave you in a position where you can’t afford to buy a new vehicle (even if it’s secondhand).
So, what can you do? If you’re concerned about this situation, you can get in contact with your insurance company and request valuation changes. Remember: if you’re increasing what the car is covered for, it’s likely your premium will increase. Also, be aware that car prices may shift down as global demand and shipping issues change, so you may want to reevaluate again when you renew your policy.
If your insurance provider isn’t willing to negotiate a change or you aren’t happy with the deal they’re offering, you can always consider switching providers. Check out the policies below for an idea of common comprehensive car insurance fees and features.
Compare comprehensive car insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $400 - $2,500
- Agreed or market value
- Agreed Or Market
Available discounts
Comprehensive Car Insurance
Youi like to get to know you from the very first conversation, which provides you with the opportunity to find comprehensive car insurance cover that could better suit your lifestyle and your needs. Because we’re all individuals, so we all use our cars differently from day-to-day. Youi is car insurance that’s a bit more you-shaped.
- New car if written off
- Yes - within 2 years and a listed driver is the first registered owner
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $50 for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- Unlisted and aged 25 and over: $700, Unlisted and aged under 25: $2,000, Listed and aged under 25: $600
- Roadside assistance
- Yes
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Youi Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $800 Flat Excess Fee
- Agreed or market value
- Agreed Or Market
Available discounts
Comprehensive Car Insurance
ROLLiN’ put their customers in the driver’s seat by offering great value comprehensive car insurance with no additional excess for young drivers. Zero cancellation fees, 24/7 claims support via phone and a policy paid monthly. Plus, you can list multiple cars and drivers under the one policy, as long as they fit the underwriting criteria
- New car if written off
- Yes - within 15,000km of original registration
- Rental car after theft
- Yes - Up to 21 days, max $80 per day after a covered event
- Rental car after accident
- Yes - Up to 21 days, max $80 per day after a covered event
- Windscreen cover
- Yes - one claim can be made per Insurance Period, with $0 windscreen excess
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- No additional excess for young drivers. $3,000 for unlisted drivers
- Roadside assistance
- No
- Other benefits
- Optional benefit to boost the Single Car Value by 15%, it will be shown on your Insurance Certificate
- Other restrictions
- -
- States where offered
- SA VIC NT TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about ROLLiN' Comprehensive Car Insurance
Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $550 - $1,900 (varies By State)
- Agreed or market value
- Agreed Or Market
Available discounts
- No Claim Discount
- Online Discount Up To 15%
Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $2,200
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount $75
Comprehensive Car Insurance
Australia Post Comprehensive Car Insurance offers a broad range of coverage and includes cover for anyone who drives your vehicle. It also covers new car replacement if your recently purchased brand new car is written off within the first three years (provided it has travelled less than 60,000km). Get $100 off your first year's premium when you buy Comprehensive Car Insurance online. T&Cs apply.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess ($0 excess for repair only). Option to reduce windscreen replacement excess to $0 for an additional premium.
- Modifications
- Automatically covered.
- Young driver excess imposed
- $600 for listed drivers under 25, $1,600 for unlisted drivers under 25.
- Roadside assistance
- No
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Australia Post Comprehensive Car Insurance
Seniors Car Insurance
- Monthly premiums
- No
- Choice of repairer
- No
- Choice of excess
- $500 - $2,500 (varies By State)
- Agreed or market value
- Agreed
Available discounts
- Price Beat Offer Available For Eligible Drivers Over 50 Years Old Switching From A Comparable Policy With The Code ‘SENIORS’. T&Cs Apply.
Seniors Car Insurance
TrueCover is run for people, not profit. TrueCover provides comprehensive cover tailored to Australians over 50 years of age. Includes roadside assistance, ambulance cover, no maximum driver age, death/funeral benefit, new car replacement and an Australian-based contact centre. Insurance not offered in NT.
- New car if written off
- Yes, within 12 months and 10,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days, max $50 per day, $700 total.
- Rental car after accident
- Optional Extra - Up to 14 days, max $50 per day, $700 total.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $50 for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $1,000 for drivers under 35, $1,000 for drivers that have not held a full license for 5 years, and $3,000 for unlisted drivers.
- Roadside assistance
- Yes
- Other benefits
- Ambulance After Accident; No Maximum Driver Age.
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about TrueCover Seniors Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Yes, Optional Extra
- Choice of excess
- $500 - $2,300
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount $80 Off New Online Comprehensive Car Insurance Policies.
- $10 Monthly Kogan.com Credit For Every Month For Policy Is Active.
Comprehensive Car Insurance
Covers damage caused in an accident, weather events, fire and theft, plus damage your car causes to other people’s vehicles and property. Choose to add on a number of optional extras. Score $115 off new online Comprehensive Car Insurance policies (T&Cs apply). $10 monthly kogan.com credit (T&Cs apply).
- New car if written off
- Yes - within 3 years of original registration and driven less than 60,00km.
- Rental car after theft
- Yes - Up to 14 days, reasonable daily cost.
- Rental car after accident
- Not at fault - Yes, reasonable costs. At fault - Optional Extra, reasonable costs.
- Windscreen cover
- Yes - repairs to windscreen, sunroof or window glass without excess but excess applies if replacement is needed. . Option to waive excess for windscreen claims for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for listed drivers under 25, $1,600 for unlisted drivers under 25
- Roadside assistance
- No
- Other benefits
- $5 Kogan.com credit when a quote is completed. T&CS apply.
- Other restrictions
- Legal liability is an Optional Extra and not included in standard policy.
- States where offered
- SA VIC NT TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Kogan Insurance Comprehensive Car Insurance
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
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