People, in general, know very little about car insurance. This is why there are many myths and misconceptions surrounding car insurance. To help combat this, we thought it would be useful to put together a brief article about car insurance. If this is something that you’re interested in learning more about, read on as we debunk four common car insurance myths so that you can have a better understanding of what car insurance is and how to best make use of it.
In Australia, you must have compulsory third party (CTP) or motor accident injuries (MAI) insurance in order to drive a car. Some states and territories include the cost of CTP or MAI in your registration fees, but others require you to purchase CTP/MAI prior to registering your car. Your CTP/MAI will help cover medical bills, lost income, and other costs related to injuries sustained in a car accident. It will not cover vehicle or property damage. In some cases, if there is no at-fault vehicle, an injured person may not be eligible for compensation.
Some car insurance policies cover accessories and modifications. You need to tell your insurer about these when you are planning to make any alterations to your car. They may affect its value so much that the sum insured—that’s the maximum amount you can be paid if and when you make a claim—will not be sufficient to repair or replace it. We factor any modifications into our assessment when we give you a quote for car insurance.
With Comprehensive Car Insurance, your personal belongings could be covered up to the specified amount. This includes capping the amount of coverage for tools of the trade that are locked in the vehicle and are stolen or damaged and capping the amount of coverage for a baby capsule or child seat, which is stolen or damaged.
This isn’t always the case. It depends on the insurance provider since some providers are more flexible and adapt to changing habits. If you receive a car insurance quote, they might ask what kind of commute you have or how often you use your car. If you are honest about when/how you use your car, it may lead to cheaper premiums.
If you are looking for a car insurance broker, you’re right. Here at Ensura, we provide insurance that will protect your home, car, and business. Our goal is to offer premium packages with market-leading prices. Start with getting an online quote today, and our expert team will soon be in touch with you. Contact us today to learn more!
Disclaimer: As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
