Comprehensive Car Insurance: Why You Need It and How It Benefits You

Did you know that one in three Australians have had their car damaged by an event outside their control in the past five years? That’s according to a survey by Finder, which also found that 28% of car owners don’t have comprehensive car insurance. If you’re one of them, you might be missing out on some important benefits that could save you money and hassle in the long run.

Comprehensive car insurance is the highest level of cover you can get for your vehicle. It covers you for damage to your own car as well as damage you cause to other people’s cars or property. It also covers you for a range of events that are beyond your control, such as natural disasters, theft, vandalism, and more.

In this article, we’ll explore some of the main benefits of comprehensive car insurance and why you should consider getting it for your car. Here are the top three reasons why comprehensive car insurance is worth it:

Benefit 1: Covers damage from natural disasters and other events beyond your control

Australia is a country of extremes. We experience floods, bushfires, storms, hail, and other natural disasters that can wreak havoc on our cars. Not to mention the risk of theft, vandalism, animal collisions, and other unexpected events that can damage our vehicles.

Comprehensive car insurance can protect you from these scenarios by covering the cost of repairing or replacing your car if it’s damaged by an event outside your control. For example, if your car is flooded by a storm, comprehensive car insurance can cover the cost of drying out your car, replacing any damaged parts, and restoring it to its pre-flood condition. Or if your car is stolen, comprehensive car insurance can cover the cost of replacing your car or paying you the agreed or market value of your car.

Of course, there are some limitations and exclusions that may apply to your comprehensive car insurance policy. For example, you may not be covered for damage caused by wear and tear, mechanical failure, or driving under the influence of alcohol or drugs. You may also have to pay an excess (a fixed amount you have to contribute towards a claim) or a higher premium (the amount you pay for your insurance) depending on your level of cover, your car’s age and condition, and your driving history. You should always read the product disclosure statement (PDS) of your policy carefully to understand what is and isn’t covered.

Here are some tips to help you get the most out of your comprehensive car insurance when it comes to covering damage from natural disasters and other events beyond your control:

• Check the weather forecast before you drive or park your car. Avoid driving or parking in areas that are prone to flooding, bushfires, storms, or hail. If possible, park your car in a garage or under a shelter.
• Secure your car when you leave it unattended. Lock the doors and windows, activate the alarm or immobiliser, and park in a well-lit and safe area. Don’t leave any valuables or personal items in plain sight.
• Report any damage or theft to your insurer as soon as possible. Take photos of the damage and keep any receipts or invoices related to the repair or replacement of your car. Cooperate with your insurer and provide any information or documents they may request.

Benefit 2: Protects your car’s value and appearance

Your car is not only a means of transport but also an asset that can depreciate over time. The more you drive your car, the more likely it is to get dinged, scratched, chipped, or dented by other cars, objects, or road debris. These cosmetic damages may not affect your car’s performance, but they can affect its value and appearance.

Comprehensive car insurance can help you maintain your car’s value and appearance by covering the cost of cosmetic repairs in case of an accident or damage. For example, if your car gets scratched by a shopping trolley in a car park, comprehensive car insurance can cover the cost of buffing out the scratch and repainting the affected area. Or if your car gets dented by a hailstorm, comprehensive car insurance can cover the cost of popping out the dent and restoring your car’s smooth surface.

Depending on your policy, you may have to pay a deductible (a fixed amount you have to pay before your insurance kicks in) or a co-payment (a percentage of the repair cost you have to pay) for cosmetic repairs. You may also have to use an approved repairer or follow certain procedures to make a claim. You should always check the terms and conditions of your policy before making any cosmetic repairs to your car.

Here are some tips to help you get the most out of your comprehensive car insurance when it comes to protecting your car’s value and appearance:

• Keep your car clean and well-maintained. Wash and wax your car regularly, check the tyre pressure and fluid levels, and service your car according to the manufacturer’s recommendations. This can prevent minor damages from becoming major problems and extend your car’s lifespan.
• Choose a reputable and reliable repairer. If you have the option to choose your own repairer, do some research and compare the quality, price, and warranty of different repairers. Ask for referrals from friends, family, or online reviews. Make sure the repairer uses genuine or quality parts and materials for your car.
• Review your car’s value and adjust your cover accordingly. Your car’s value may change over time due to depreciation, market conditions, or modifications. You should review your car’s value at least once a year and update your policy accordingly. You can choose to insure your car for its agreed value (a fixed amount agreed by you and your insurer) or its market value (the amount your car is worth at the time of a claim). The agreed value may be higher or lower than the market value, depending on your car’s condition and features.

Benefit 3: Gives you peace of mind and flexibility

Driving or parking your car can be stressful and worrying at times. You never know when something might go wrong or when you might need assistance on the road. Comprehensive car insurance can give you peace of mind and flexibility by providing you with various services and options that can make your life easier in case of an emergency or inconvenience.

For example, comprehensive car insurance can provide you with roadside assistance if your car breaks down or runs out of fuel. It can also provide you with a rental car if your car is being repaired or replaced after an accident or damage. It can also provide you with towing service if your car is not drivable after an incident. These services can save you time and money and help you get back on the road as soon as possible.

Additionally, comprehensive car insurance can offer you optional extras or add-ons that can enhance your coverage and suit your needs. For example, you can choose to have a higher or lower excess, a higher or lower agreed or market value, a no-claim bonus or a no-claim discount, a windscreen or glass cover, a new car replacement, or a choice of repairer. These options can give you more control and flexibility over your policy and your premiums.

Here are some tips to help you get the most out of your comprehensive car insurance when it comes to giving you peace of mind and flexibility:

• Compare different policies and providers before you buy. Don’t just go for the cheapest or the most popular option. Compare the features, benefits, exclusions, and costs of different policies and providers. Look for the policy that best suits your needs, budget, and preferences.
• Review your policy regularly and make any changes as needed. Your circumstances may change over time, such as moving to a new address, buying a new car, adding a driver, or making a claim. You should review your policy at least once a year and make any changes as needed. You may be able to save money or get better coverage by switching to a different policy or provider.
• Claim responsibly and drive safely. The way you claim and drive can affect your comprehensive car insurance in various ways. For example, if you make too many claims or have too many accidents, you may lose your no-claim bonus or discount, pay a higher excess or premium, or even have your policy cancelled. On the other hand, if you drive safely and avoid making unnecessary claims, you may be able to lower your excess or premium, increase your no-claim bonus or discount, or even get a refund on your policy.

Conclusion

Comprehensive car insurance is the most comprehensive level of cover you can get for your car. It covers you for damage to your own car as well as damage you cause to other people’s cars or property. It also covers you for a range of events that are beyond your control, such as natural disasters, theft, vandalism, and more.

The main benefits of comprehensive car insurance are:

• It covers damage from natural disasters and other events beyond your control
• It protects your car’s value and appearance
• It gives you peace of mind and flexibility

If you want to enjoy these benefits and protect your car from any unexpected mishaps, you should consider getting comprehensive car insurance for your vehicle. You can compare and buy comprehensive car insurance policies online or over the phone from various providers and find the best deal for your budget and needs.

Remember, comprehensive car insurance is not only a legal requirement but also a smart investment that can save you money and hassle in the long run. Don’t wait until it’s too late. Get comprehensive car insurance today and drive with confidence.