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You’ve got your first car, or motor vehicle, woohoo! It’s all fun and game until you start to delve into the world of car insurance, right? You need some tips for car insurance and you don’t even know it yet. Don’t ignore it and hope it goes away. A little time spent now, in the beginning, can you save big time should you be in an accident.
So I asked some folks I know who work in a financial planning firm that sells car insurance, and they put together some tips for you all. A beginner’s guide, things to consider from day one. Let’s get started.
When buying insurance for your motor vehicle you can often choose market value or agreed value. Market Value is whatever the car is deemed to be worth at a time of an accident, usually based on the insurance version of something like RedBook. Agreed value is when you and the insurance company agree upon the value of your vehicle and at what rate this will diminish by (if at all) annually for the length of your policy.
The problem with market value is it may be covered for less than you think. It also makes it super important that the insurer know all extras on the car as these can be taken into account when working out the market value at claim time.
Agreed upon value can sometimes be a problem if you want to cover it for more than the insurer will allow. The value can be negotiated to a certain extent through a broker or directly with the insurance company. However, there is no guarantee you will agree, and even if you do, you may end up paying more for it.
Windscreen option is normally too cheap to refuse. For example, six years of cover for the price of one windscreen, well worth the additional add-on expense. If it were up to me, I’d get it every single time, and I do. That’s my advice to you. Get the glass cover with a minimal excess.
There isn’t much you can do if you have a bad history. Some companies will refuse to cover you at all; others will charge you handsomely for the pleasure of you paying them for insurance. Shop around, be upfront about your driver history and look for companies with shorter ‘history periods’ to try to whip some of that slate clean.
Then stop breaking the law asshole..!
Sorry. Liar Liar quote, couldn’t resist.
If you’re one of the lucky ones, okay luck has not much to do with it, and you have a good driver history seek out companies who reward good driving. You can receive a discount, reduce excess or no claim bonuses if this applies to you.
Even if you own a bomb, you know a car barely worth the paper the insurance is written on, consider third-party insurance. It can be really affordable, cheap even, to cover the other party should you cause an accident.
Think you’ve already got that cover with the insurance associated with your registration… Well, think again. The compulsory insurance with your rego will only cover bodily injury to another person NOT the other car, any buildings or public property you may damage. Consider for a moment what it would cost to replace a set of traffic lights or a power pole? Get a third-party insurance kids!
Please note this insurance advice is of a general nature. Whenever you purchase insurance you should consider how it works for you, your budget and your personal needs. Ask someone you trust for their advice if you have concerns.
Melissa is the Leave Home Blog Boss. She is living the high life in her hometown, didn’t finish her marketing degree & drinks too much on a Thursday night. Blogging since 2009, Melissa decided to put everything she knows into making The Leave Home Blog a light & easy how-to guide for being a grown up.