The best Car Insurance may not be the cheapest

Car Insurance, like any other insurance, provides you with security and protection if an unforeseen event occurs. Getting the most out of your insurance company as well as finding one that meets your needs requires effort and time. The information below provides some useful pointers on what to look out for when that time of the year has come.

Usual Optional Covers:

• Hire Car

Would not hesitate ticking this option if you only have access to 1 car (which is now in for repairs) and this is used as your daily commute to/from work.

• Windscreen Cover

Would only select this option if the majority of the kilometres travelled are highway/freeway/country driving. These are the most likely driving environments where a cars windscreen could be chipped/smashed. If you mostly use your car for city commutes with the occasional long distance country trip, then I really see no benefit in obtaining the Windscreen Cover.

• Named Driver

Selecting this option should decrease your insurance premium.

Would only select this option if you (and/or your partner) predominantly drive the car. In this instance, you would name both of you as Named Drivers.

If you are really fussy about your car, I would also consider the following.

Choice of Repairer

You really need to define exactly what this means as different insurance companies have slight variations on how this is applied. What you need to ensure is that YOU have the final say of where you want your car to be repaired. I’ve had far too many experiences where I’ve taken my car to a (supposed) reputable repairer in town to only (eventually) discover that their work was sub-standard. If you can’t get the repairer right after extensive due diligence on your own part, what hope would do you have with your insurance companies list of repairers – next to nothing,

Adjusting the excess

These days what looks to be a $125 repair ends up being over $600+. To alleviate the out of pocket expenses that would accrue with each little misdemeanour, reducing the excess by paying an increased premium may suit. In a nutshell, if the amount of the reduced excess is greater than the increased premium, then it makes sense to go for it. In order to take advantage of this setup however, at least one claim per year will need to be made (otherwise you’ll be paying extra premium for no benefit). Claiming once per year may, however impact your insurance premium renewal amount (i.e. it will increase), particularly if you aren’t rating 1 for life. Something else to follow up on.

For most, the best car insurance company is the one that provides the cheapest car insurance rates full stop. However, for the more passionate car owner, there’s more to it than that. As with most large scale purchases, some due diligence is required by the prospective car insurance consumer.