This insurance article was compiled with the assistance of, and sponsored by, AAMI
As strange as it may seem, buying car insurance is a little bit like buying shoes. It is by no means a one-size-fits–all situation and you will find so many different styles on offer that it can sometimes be hard to know where to start. But purchase the wrong kind and you might be in for some very uncomfortable moments.
You should also bear in mind that your insurance needs will probably change over the years, so it pays to get the right policy for your stage of life. Without stretching the footwear analogy any further, the message is a simple one: make sure you know what you want and what you can afford, then find the best fit for your individual needs.
Like so many purchases there is significant choice available in car insurance, thus it’s sometimes hard to compare insurance like with like. That’s why it's so important to make sure that the insurance policy you’re paying for will actually give you what you need when you need it.
AAMI’s Corporate Affairs Manager, Reuben Aitchison has some simple but valuable advice: “A policy is only as good as the service you receive if you have occasion to make a claim, so avoid making a decision based only on price.”
Aitchison continues: “Consider how your insurer will look after you in the event of a claim, for example: does the insurer specify genuine or original equipment manufacture [OEM] parts? Does the insurer provide a lifetime guarantee on repair work that stays with the car even if it is sold? And is the insurer available when you need it, ie: 24 hours, seven days.”
Families have some specific insurance needs. For example, a family’s second car may do far fewer kilometres in the average year than their main vehicle, so the same policy might not suit both.
Families planning long driving holidays should consider a policy that provides emergency accommodation and transport in case you find they find themselves stranded far from home.
Parents of teenagers should also make sure they are covered for those times when the kids are learning to drive and taking their first nervous outings behind the wheel. Then, once your offspring have cars of their own you would be wise to remind them of the benefits (and costs) of insurance, because you can’t include their vehicles on your policy.
“AAMI will only insure one car per policy,” says Reuben Aitchison.
“The premium is calculated based on various factors including the insurance history, driving history and the ages of the people who will be driving the car. “
When it comes to non-accident-related claims, a few minutes reading the fine print of your policy statement can pay off in the long run. Theft from cars has always been a problem but the types of possessions stolen and the cost to replace them has changed over the years.
The contents of the car that are generally covered up to a certain amount in the event of accident or theft are things such as luggage and clothing. What some people don’t realise is that items such as mobile phones, cash, laptops and other ‘tools-of-trade’ are not necessarily covered.
Hail, floods and storms can hit unexpectedly and leave you with big repair bills if you’re not adequately protected.
“It depends on the policy held. However, hail, flood and storm damage are covered by an AAMI comprehensive car insurance policy but an excess is payable,” says Aitchison.
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