Australians own vehicles in the millions: around 18 million, to be more precise. Given how big the country is, that shouldn't be much of a surprise; imagine walking from Canberra to Adelaide and back? While driving can make daily lives easy, things can happen at any moment without warning. This is why it's vital to have proper car insurance.
It’s vital to protect yourself from any accidents or injuries that could happen while you’re driving. Drivers at times might they are Supercars-quality drivers, however, accidents happen.
A great way to protect oneself is by getting car insurance. However, there are several factors to consider before a car is insured. The main ones to take note of include:
There are many insurance options for drivers these days. An alternative policy that's rising is PAYD (Pay As You Drive) insurance. PAYD, according to The Australian Securities and Investments Commission, is defined as such:
“The premium is based on the number of kilometres you expect to drive in the coming year. If, during the year, you think you will drive further than planned, you can 'top up' your kilometres for an additional cost. However, if you exceed your elected kilometres and don't tell the insurer, your level of cover may be reduced.”
You can end up with a lower premium if you're able to come up with the number of kilometres you're likely to drive in the upcoming year.
Getting car insurance does not have a singular, one-size-fits-all approach. Shopping around to find the ideal product for a person’s driving needs and lifestyle is key. Even within one company, car insurance policies may be different.
You might think reading the fine print for your insurance policy is a drag, but actually, it’s a good thing. It will allow you to understand the terms of your policy and what’s covered, so you’re not surprised later on. Here is an example of a link to a CGU Car Insurance PDS:.
Australian law requires your insurance company to include all the policy terms and conditions in the PDS. Otherwise, the PDS should have a policy document included with it.
The document needs to be written in plain English, which means it should be easy to understand even the finest fine print without seeking expert help.
It should be noted that the PDS is not customised with regard to a person's financial situation or specific needs. Reading several PDS from various car insurers is thus necessary to really be able to make an informed decision.
Should there be confusing information or statements in a PDS, a call to the insurer for more details should solve it. They should be able to explain things in more detail, which will help to fortify whether or not the policy in question is the right one.
Staying protected when driving on the road is important at every stage. One of the best ways to do that is by taking on car insurance. It should be noted that car insurance can vary, so it's important to read the PDS and determine the frequency of driving.
Trying to find a car insurance broker in Sydney? Reach out to Ensura today! We service insurance for businesses, motor vehicles, and homes.
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.
