What to look for when comparing car insurance policies

Coles Financial Services 9th Jul 2015 in Car insurance

With so many options available in today’s competitive car insurance market, trying to choose the right policy can be confusing.

Here are a few simple steps to help you select the best cover for you and your car.

Types of car insurance

Firstly, think about the level of cover you would like.

Compulsory third party insurance (CTP) is the most basic form of insurance and by law every car must have it. It covers you against claims for compensation if you injure someone in a crash.

If your car is not worth much, then you may think CTP cover is all you need, but it doesn't cover you for damage to other people's property (if you're unlucky enough to run into a Ferrari, for example!).

Third party property damage insurance covers you for damage to other people’s cars and property, and also for damage to your car if it is involved in an accident that’s not your fault.

Third party fire and theft insurance offers the same level of cover as third party property damage, plus the additional protection in the event your car is stolen or damaged by fire.

Comprehensive car insurance covers you for damage to your vehicle, as well as other people’s vehicles and property, even if you were at fault.

Don’t pay too much

Price is a key factor when choosing a car insurance policy. Apart from shopping around for the best quote, here are a few other ideas to help keep costs down:

  • If you also require home insurance, then try asking insurers to quote you for both policies together. Many will offer discounts to customers with more than one policy.
  • Remember that most insurers offer discounts for online applications, so arrange cover over the internet if you can.
  • Lastly, consider raising your excess to qualify for a lower premium.

What to look for in a policy

Apart from price, there are several other things you'll need to look at when choosing a policy. Good-quality cover might include:

  • A guarantee on repair work done through authorised repair centres
  • New-for-new replacement (for cars insured from new)
  • Protection from flood and hail damage as standard 
  • A range of options to help lower your premiums (for example, the ability to exclude younger drivers)
  • The option to protect your no-claim discount
  • Car hire and taxi benefits while your vehicle is out of action
  • Towing and accommodation costs, if you are stranded far from home after a crash
  • Caravan or trailer cover
  • Windscreen cover
  • Stolen keys replacement
  • A hassle-free claims procedure

Coles Comprehensive Plus Car Insurance includes all the above – and can even reimburse you for groceries damaged or stolen in an accident, up to $200!

Conclusion

Choosing the right car insurance takes a bit of homework. But it’s well worth it for the peace of mind you’ll get from knowing that should the unexpected occur, you and your car have the protection you need.

Consider the Product Disclosure Statement to decide if it's right for you. Any advice is general only and may not be right for you. Standard underwriting criteria apply. Coles Supermarkets Australia Pty Ltd acts as authorised representative for the issuer WFI Insurance Limited (ABN 20 000 036 279 AFSL 241461)

Tags: comprehensive car insurance third party property damage third party fire and theft