Everyone shout hooray for car insurance! Now everyone give a slow clap to the cost of premiums and excess. Well, you can’t have your cake and eat it too, so to speak. Yes it is great that we have car insurance available to purchase, but what we pay in our premiums and excess is usually a fraction of the actual cost of repair or replacement of any one or multiple vehicles. In the end, we just never know when we’ll need to make a claim, so it’s better to have as much protection you can afford.
But how much car insurance suits your budget? Below, you’ll see a snapshot of what you need to know before making a decision. There’s so much to consider when it comes to the nitty gritty of it all, which is why we’ve cut your research time to a few minutes instead of taking you a few hours. Try our Mozo car insurance comparison tool as a start.
For some people, this is a no-brainer and may even divide the crowd. There’s the comprehensive devotees and those that want just enough cover to, well, cover them - in case they cause an accident and need to repair their own vehicle or someone else’s, and or other property.
If you’ve not really compared the two much before, let’s have a closer look to see the typical features of the two options and what what might suit your personal situation:
|Comprehensive||Third Party Property|
|As the name suggests, a comprehensive cover, as long as you qualify, is one that covers you if you’re at fault in an accident. So the repair or replacement of your car and damage you cause to other people’s property and vehicles will be paid for by your insurer after you pay your excess. |
But not every insurer will offer you the world. You’ll need to check what the base of the comprehensive policy covers you for, then ask what features you can add on top.
Things like windscreen cover, accident car hire, fire and theft are usually extra features you can purchase in addition to your basic premium rate. Always check what additional features are because you most certainly do not want to miss out when you need it most.
Bear in mind, because comprehensive insurance covers a whole lot more than third party property, up to $10m in some cases, your premium is going to cost more. If your vehicle is worth more than $5000 and you can budget in comprehensive insurance, Mozo will nearly always recommend comprehensive above it’s cousin alternative.
To compare the two insurance options, try Mozo’s comparison tool as your first step forward.
| Third party property is usually an option people when they feel that their vehicle's value low or that comprehensive is simply out of budget. |
But did you know that most third party property insurance only covers you up to $5000 or market value for damages of toward your car. If that’s ok with you, then that’s ok with us. Just make sure you’re covering all bases before making a decision.
Something else to keep in mind, you can buy extra features on top of your base third party property insurance. So if you want your policy to include cover for fire and theft, then for a few dollars more per week, you can get the cover you need.
Windscreen cover? Ask how much it is. Then as how much it is to replace it yourself should you need to. Then compare the replacement to the cost of this extra feature per annum and see if windscreen cover is worth adding in the first instance.
If not, keep some money aside - because if that rainy day turns up, the last thing you want is to have a windscreen you need to replace urgently and no savings to do so. Then the rain will really gush in. Gosh!
Whether you choose comprehensive or third party property, the types of features you can add are virtually the same. But if you’re starting off with comprehensive, check what’s already included! You don’t want to double up on features. That’d be a total waste of mulla.
Here are some of the features you can expect to add at a small, extra cost:
If you’ve ever made a claim before, you’d know that the ‘excess’ is the amount you pay to unlock your insurance policy. How does it work?
Just say your excess is $600. So if you’ve elected to purchase a comprehensive car insurance policy, and your repair cost is $3,000, your insurance company will fork out $2,400 on your behalf to cover the repair. Not a bad saving.
The absolute number one rule when it comes to how much excess you pay is this: the higher your premium, the less excess you pay. Simple! What’s more, some insurers offer a feature where you can pay a super high premium, and avoid paying excess at all! Say what?! Yes, it’s true.
So if you’re accident prone, have a young driver in the house who’s sharing your car and whose name is on your policy, you might want to check if this feature is available to you. Your budget permitting of course!
Want to find out more about premium and excess costs? Read up on Mozo’s car insurance guides.
I want to purchase, review and or change my car insurance and options online
Purchasing, reviewing or adding features online is certainly power to you. The benefits? Freedom. Your time, anytime and anywhere. You can make these purchases and amendments from the comfort of your own desk at home or work, on the run while commuting to work or play on your smartphone or tablet.
The added bonus to your online power? Insurers will usually reward proactive customers with a handsome discount of 10-30%. That’s a little cray cray, but it’s there for the taking, so why not? If in doubt or confused about an element of your policy, make your initial purchase online, then call during hours of operation to sort it all out.
After speaking with a consultant and you feel that it’s not the policy for you, you may find that they will refund you for the balance of the policy. If it’s a fairly recent enquiry from the time of purchase, they may even offer a 10 day cooling off period. But ask ask ask all the questions you need and want. The insurer may even tailor a policy that will suit your personal situation, from extra features to payment plans to save you from leaving. Sounds good to us - ask away!
We understand when people get confused about this, but the explanation is really quite literal but lacking punctuation. Think of it like this: ‘No claim? Bonus!’ Cheeky, we know, but it makes more sense when we put it like that.
So basically, the more awesome a driver you are, the more you get rewarded. That means, each year you go without making a claim on your car insurance, the less premium you need to pay. And that’s the reward. Claim less, pay less.
The good news is, if you’ve built up your NCB over the course of time with one company, and you want to change your insurers, most of the time you can carry over your bonus to the new company.
All you need is a letter from your current insurer stating how good a customer you are, paying on time and not making any claims. It’s definitely worthwhile if you’ve earnt yourself a sweet 20-30% on car insurance. Any insurance for that matter! Imagine if you require multiple policies like life and or house and content as well. That’d be multiple savings for those too! Providing they are all with the same insurer.
Need a hand in making a decision? Mozo’s here to help! Read up on customer's unbiased reviews to get a personal understanding of what they experienced and with which company.