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What is Comprehensive Car Insurance? A Beginner’s Guide

Getting your vehicle insured before you drive it is essential when financing a car. Car insurance not only protects you and your money but also the lender: nobody wants you to be owing thirty grand on a car that is written off.


Car insurance will allow you to bounce back quickly from accidents and breakdowns and will give you that added peace of mind while on the road. But did you know that there are different types of car insurance available? In this article, we will be looking at comprehensive car insurance, and why should you consider buying it.


What is Comprehensive Car Insurance?


Comprehensive car insurance, as the name suggests, covers you for everything. That means you may get insurance cover in the event of the following:



  • Theft and burglary

  • Personal injury

  • Loss of personal items

  • Damage to third-party property

  • Damage to your windscreen

  • An outbreak of fire and damage

  • Accidental damage


However, many insurance carriers will offer different benefits, and levels of cover depending on the event. As such, it is always important to compare insurance cover with several providers. This way, you can opt for a package which will cover you in every eventuality.


How Much Will it Cost?


Don’t worry! Comprehensive car insurance remains Australia’s most commonly-held vehicle coverage, meaning people from all walks of life can afford the premiums and excesses. These are often paid monthly and can even be included in your finance repayments.


There are, however, a few things you are going to need to bear in mind before you take out any car insurance in Australia.


Excess Fees


An excess is money you pay if you need to claim your policy. That means, for example, if you need to claim on insurance for damage to someone’s property, you will be required to pay a small fee up front to receive coverage. The amount you pay can vary, and the less you pay, the higher your premiums will likely be.


Premiums


Premiums are what you pay for insurance outright. These are often monthly payments which are spread across several months/years for agreed protection. The amount you pay on your total premium can be affected by circumstances such as your age, how long you have been driving, your car’s value, its make and model, and more besides.


As always, it is a good idea to discuss details with each carrier and your broker before you take out any cover.


Usually with car insurance you do get what you pay for: a budget policy won’t include generous allowances for rental of replacement vehicles, your choice of repairer, or a good claims policy. Some of the dirt cheap options don’t even have a phone number you can call, this can be incredibly frustrating if you do need to make a claim.


Contact Us


At Auto Car Loans we offer a number of different comprehensive car insurance options, from budget through to mid range. All represent good value. Our team will be happy to help you navigate even the trickiest elements of vehicle finance and insurance. Call us today on 1300 301 051 to speak to a friendly car finance expert at your convenience.