Guide on how to choose vehicle insurance in 2022

Think about whether your vehicle gets written off, stolen, or having an accident, or whether you can afford to pay for the damage to someone else’s car. It is absolutely a stressful experience, so give yourself peace of mind knowing you have already investigated the best/most appropriate vehicle insurance.

 

Type of vehicle insurance  in Australia: Third-party VS comprehensive

 There are many levels of insurance cover to consider, which include Compulsory third-party (CTP) insurance which is compulsory to drive on Australian roads and it is included in your vehicle registration cost except in New South Wales. Also called green slip insurance. It covers the costs of compensation claims if you injure or kill someone in a car accident but It doesn’t protect the other parties’ car if it is damaged, nor does it protect you or your car. Then there’s Third-party property insurance that will help cover some repair costs if you cause damages to other people’s property, including cars, when an accident is your fault. 

But if you’re after a policy that also insures your own vehicle, you’ll want to consider Third party property, fire, and theft, which on top of covering the third party’s property damage it will also cover your vehicle if it’s stolen or damaged by fire. Then there’s the Comprehensive vehicle insurance which is the highest level of insurance that you can hold for your vehicle. On top of covering the third party’s property, comprehensive vehicle insurance will also cover the repairs to your vehicle due to an accident even if it’s your fault, accidental damage, often damage that occurs due to weather such as flood or vandalism also covers your vehicle if it’s stolen or damaged by fire. Because of the high level, comprehensive vehicle insurance is the most costly form of insurance.

But with so many choices out there, there won’t be one best car insurance option to suit everyone. Depending on how you slice the data, pricing, and policy inclusions, there are many ways to define which car insurance policies are the best. 

 

Next step: Determining your Vehicle value

 The next step after choosing the level of your vehicle insurance cover, you will have to choose what value you want to ensure your vehicle for in case it gets written off. There are two types of your car amount value and it is as: 

Market Value

It means your vehicle is covered for what it’s currently worth ‘in the market’. In nutshell, The price of your vehicle will be assigned based upon the amount your car would have sold for, at the time of the accident, or at least, what it was worth before it was damaged. Some factors that commonly impact the amount include the age of drivers, the type of vehicle you’re driving and you may still need to pay a car insurance excess, a one-off payment to be made to your insurer before your claim can be paid out.

 Advantages of Market Value:

  • In general, it is cheaper than the agreed value and helps save money for those who are fine to insure their vehicle for its current worth in the market.
  • It always adapts to match the cost of replacing your vehicle. This way, you know that you can replace that vehicle with something similar, with the cost covered.

 

 Agreed value

is a predetermined amount both you and your provider consent to insure the vehicle for until the policy ends. The agreed value policy is not available for all vehicles and if your vehicle has pre-existing damages that might affect whether you can get the agreed value or not. It’s important to note that If you renew your policy, the agreed value will be reassessed and adjusted. 

Advantages of Agreed Value:

  • You are able to ensure your vehicle for more than it’s worth. However, if the cost to replace the car is greater for the insurer, you may end up paying more in premiums. 
  • The amounts for which you insure your vehicle are honoured for the duration of the policy. You probably have to renew your policy every year, and your insurer may propose a new agreed value that is lower or higher than your first agreed value.

 

The main difference between agreed value and market value is you claim whatever amount of money back that you agreed on with your insurer because that policy pays the same regardless of your vehicle’s depreciation.

 

 Other Factors to consider when looking for vehicle insurance

Get quotes from more than one insurer to find the best value for money and a policy that suits your needs. Each policy is different and may use different terminology so it’s important that you read the product disclosure statement so you know what you are paying for and what you’re covered for. If you need to submit a claim for the policy, you have to make sure that your insurer is easy to deal with and the claim process is fast and efficient. Many insurers enable you to submit your claim online or over the phone, whilst some will require you to submit it in person.

It is also important to know the excess you will pay when you make a claim.  Some policies will allow you to adjust the excess amount and pay higher while some policies will allow $0 excess. to weigh up whether you would rather pay a higher amount in your insurance payments and therefore a lower amount in excess should you make a claim, or a lower upfront payment with a higher excess.

 Some policies include a no-claim bonus. This means you pay a smaller premium if you don’t make a claim for a certain period of time. Is it important to compare the No Claim Bonus Policy of each insurance policy you review, as each will have different terms and conditions. 

Read the policy to understand what claims affect your bonus and if there are any limits. Also note that some insurers may not agree to provide cover for vehicles that are Previously written off’ (WOVR), as in reality, the value of this type of car is unknown. In the case of finance, note, your finance provider will likely require proof of ‘Comprehensive Insurance’ of the vehicle noting the value and the insurer as an ‘interested party’.  Refer to your policies for clarification.

 

Make sure to get the right vehicle insurance

Here are a few questions you need to ask yourself before getting your vehicle covered:

  • Do I invest the right amount of money for insuring my vehicle?
  • Do I know my cover policy well?
  • Does the insurance cover all the things I need?

 

Contact a Professional

Contact our qualified expert technicians in German Precision For all types of vehicle inspection

Different Types of Vehicle Inspections

Buying a used vehicle can be a risky endeavour when you don’t know what is under the hood. With the potential to save a lot of money and afford more higher-end features than you would with a new vehicle, however, the risks can be worth it in the end.

Every day, many people successfully find the vehicle of their dreams by checking out local used inventories before moving on to the latest model year lineup of their preferred manufacturer. With that said, there are several steps you can take to safeguard yourself from the possibility of buying something that doesn’t meet your needs. More importantly, these steps will help you avoid the fate of having to spend more money on costly repairs you weren’t expecting. Anytime you have the chance to look at used Fords for sale in person; there are several things to look at and inspect to assess the quality and condition of the vehicle.

Vehicle inspections are very useful for car owners. They paint an accurate picture of the health of the vehicle. There are a few different types of controls that can be done, and each one serves a purpose. Some of them can be on your own, in person, during the first time you look at a used possibility. Others will require the use of a professional mechanic who has the knowledge and experience to know what to look for under the hood.

The Visual Inspection

The very first thing you should do when looking at a used car or truck is to start visually inspecting it. This begins with a look at the exterior. Glancing over the exterior body panels from bumper-to-bumper will give you an idea of the conditions the vehicle has been driven in. For example, if it has been exposed to a lot of harsh weather, you will start to see many scrapes and dents on the surface.

Some amount of wear and tear should be expected with most used vehicles. The alarming signs of damage come in the form of larger dents, holes, rust, or other deformations that compromise the integrity of the vehicle. Look around the entire exterior, cataloguing each and every one of the blemishes you see.

Take the visual inspection to the interior as well. This includes looking at the cabin of the vehicle for signs of wear and tear as well as under the hood and drivetrain. If possible, get yourself under the car to check out the undercarriage. For both the engine bay and undercarriage, look for similar signs of corrosion and heavy use on the drivetrain parts.

The Experiential Inspection

Beyond looking at a used car, the best way to personally inspect the vehicle is to take a test drive. This is a step that many people forget about since it is less common in used vehicle purchases. It is also one of the best ways to find potential issues you would normally miss through visual inspection alone.

When you’re out on the road with a vehicle, you will begin to hear and feel how that vehicle performs in real-world conditions. More importantly, unseen issues in the engine, drivetrain, and interior of the vehicle may make themselves known through shakes, noises, and other unexpected signs.

Take note of these issues in the same way as you do with a visual inspection. Keep a list that is as accurate as possible so you can refer to it later on when you are assessing whether the vehicle is a good option or not. It is easy to forget what you see, hear, and feel after a test drive, so this reference list can make the difference when making your final choice.

The Professional Inspection

There are some things you simply can’t see or discover in terms of issues with a used vehicle on your own. Sometimes, this is simply because of a lack of experience and knowledge. Unless you are a professional inspector like German Precision, it is difficult to know every single potential issue or sign to look for during a visual and experiential inspection.

This is why it is smart to have a professional inspector look over the used vehicle before you make a final purchase. This type of inspection involves the inspector going over the car with a fine-tooth comb. They are also likely to use more advanced tools and equipment designed to detect smaller, more subtle issues with the advanced components of a car.

If you feel like it’ll be difficult to schedule a professional inspection before you purchase the used vehicle, you should move on to other prospects. Sometimes, private sellers, in particular, resist this step when they know there is something wrong with the vehicle they are not willing to share. Even some dealerships only rely on their basic inspection process to assure customers of the vehicle’s condition and reliability.

For the sake of your own security and financial well-being in the future, don’t settle for this limitation. Only buy a used vehicle if you can get it into the hands of a professional expert beforehand.

Buying A Used Vehicle With Confidence

The most important thing you should have when buying a used vehicle is the confidence in that purchase. Confidence comes from knowing you have done everything possible to ensure the quality and condition of the vehicle before putting your money on the line. Since all used vehicles have some degree of uncertainty, it is best to take any step you can to reduce this uncertainty as much as possible.

This is the true power of inspecting the vehicle beforehand. Taking the steps to do it yourself through the visual and test drive inspection is a good start. Having a professional mechanic filling the gaps that you may have missed is the best way to get the most from this inspection process.

If you are looking for a professional pre-purchase car inspector in Melbourne, do not hesitate to contact German Precision or Prepurchase Check today!

sources: kingsfordinc.com, ryangmw.com