Choosing the right car insurance policy

Remember yesterday when you were writing in your diary about how you planned on having a car accident tomorrow afternoon? Said no one ever. These awful incidents, no matter how minor or major, are a shock to the system.

But if you don't have car insurance, they could also become a shocking drain on your savings. So, let's go through car insurance policy options to make sure you're prepared for the worst-case driving scenario.

Car insurance is so expensive. I don’t think I can afford it.

The real question is, can you afford not to have car insurance? Since having an accident is unpredictable, it’s better to be prepared for one, at least financially. 

There are plenty of sticky situations you don't want to find yourself in without any cover. If you don't have enough car insurance and cause an accident, you may have to foot the whole repair bill for yourself and other drivers. Then there's all the wild weather events, fire, vandalism and theft that could damage your ride and cost a pretty penny to fix or replace.

There are so many insurance companies. Which one is right for me?

Everyone's needs are different, so the best choice you can make is to compare your options and find a policy that suits you. Head to Mozo's car insurance comparison page to compare prices and features and find the most suitable, best-value deal.

But don’t just rely on price comparisons. Research what people have said and how they’ve rated car insurance companies based on their personal experiences. Here you’ll read unbiased reviews from regular people like you who may share similar needs when it comes to car insurance.

I’ve heard about car insurance discounts. How do I get 'em?

It’s no secret there are discounts to be had when it comes to car insurance – you've just got to know where to look. So hold onto your wallets and let us show you a couple of money-saving tricks:

1. Online purchase: Just by buying your insurance online via the individual company's website, you could save up to 30% on your first yearly premium. Some providers may not be so generous but might offer you something like 5% off or $50 cash-back.

2. Loyalty discount: Simply by staying with the same company for a period of time, they may offer you a loyalty discount (often even if you have made a claim). But check with your insurance provider about this one, as each company has different loyalty discount conditions.

3. No claim bonus: This is essentially a scoring system to reward safe drivers. Depending on the insurance provider, if you don’t make a claim against your policy for certain time periods, you’ll be rewarded by your provider reducing your premium. The insurance companies want to encourage drivers to remain diligent and conscientious on the road, but it also means they don't have to pay-out claims (so it's a win for them too). Typical discounts can be found in Mozo’s no claims car insurance table.

It all depends on which level of car insurance you purchase. The first step is choosing between:

• third party property car insurance; or
• comprehensive car insurance

You may be thinking, "Great! Since there’s only two to choose from, I’ll just go for the cheapest one." But before you do that, you need to assess what each option covers you for.

Third Party

• Accidental damage you cause to other cars or property, usually up to $5,000 unless you pay for a higher level
• Damage caused by fire and loss from theft (if you opt for a third party fire and theft policy)

Comprehensive

• Accidental damage you cause to your own car as well as others' and their property (usually much higher dollar limit than third party levels)
• Bad weather like hail, storm, flooding and fire
• Theft and attempted theft
• Vandalism and malicious damage
• Some modifications
• Emergency repairs (up to a certain amount)
• Car hire (often only available in some circumstances)
  New-for-old replacement car (with age and kilometre conditions)
• Towing from accident to repairer or your home
  Accommodation and travel costs after an accident

As you can see, for a few hundred dollars more per year you can get many more benefits if you go with a comprehensive policy.

However, third party property cover could make more sense if your car isn't worth as much as the premiums demand. The good news is you can usually opt for extra features as part of your policy if your budget allows.

Don't forget you'll also need to register your car within your residential state or territory, and take out Compulsory Third Party (CTP) insurance (also known as a Green Slip). This cover is mandatory if you want your car to be legally roadworthy, and acts as a type of liability insurance if you injure or cause the death of someone while driving.

What’s not included in my car insurance?

Whether you choose comprehensive or third party property, there are some things generally not included in your car insurance like general wear and tear, tyre damage, mechanical or electrical failures, and any event where you're not acting within the law.

Then there are other things that aren't included as standard but often offered as optional extras at an extra cost. These include:

• Roadside assistance
• Excess-free windscreen and glass protection
• No claim bonus protection
• Car hire after an at-fault accident
• Extra people listed as drivers on your policy

Once you're assessed all these variables, head to Mozo's car insurance comparison page to find the best policy to suit your driving needs.