Drive A Better Deal
Money Magazine Australia|October 2018

While premiums are important, there are other factors to consider when you buy a policy

Nicola Field
Drive A Better Deal

Car insurance may be a grudge purchase but it pays to choose wisely. One in seven motorists claim on their car cover each year, and it’s then that they may discover a super cheap policy has more holes than a dirt track. Here’s what you need to know to cut the cost of cover and avoid the hidden traps.

What type of cover?

“There is a common misconception that compulsory third party (CTP or green slip) insurance – a form of personal injury insurance – covers damage to cars. It doesn’t,” says Jonathan Kerr, chief marketing officer of Budget Direct.

In fact, CTP cover only protects the driver against legal liability for injury or death caused in an accident. If you want to insure your car, comprehensive insurance is regarded as the gold standard, providing cover for theft plus damage to your own car or someone else’s if you have a fender bender.

If you drive a banger, cheaper third party property damage is a better option. It covers the damage you cause to others, though not your own car.

The rule of thumb with any type of car insurance is to shop around – not just when you first arrange cover but each time your policy comes up for renewal. One in three Australian drivers has never changed their insurer, and loyalty doesn’t always pay. Research by Canstar shows average annual premiums for comprehensive cover range from $1000 in NSW to less than $700 in Western Australia and Tasmania. So there is plenty of scope to save.

That said, premiums shouldn’t be the only factor to consider. “You really must consider your own circumstances and look at the policy’s benefits and features as well as price, to make sure you’re getting the best value for you,” says Kerr.

هذه القصة مأخوذة من طبعة October 2018 من Money Magazine Australia.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة October 2018 من Money Magazine Australia.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من MONEY MAGAZINE AUSTRALIA مشاهدة الكل
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 mins  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 mins  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 mins  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 mins  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 mins  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 mins  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 mins  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 mins  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 mins  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 mins  |
July 2024